A proposal is commencing to move by way of Juneau’s assembly that would give significant assets tax breaks to new housing in components of downtown Juneau.
It is one particular more resource in the city’s belt to aid with a perennial goal to make housing extra cost-effective in the Funds City.
The draft proposal is for new developments of at minimum four new residential units. And it only applies to the parts of downtown around from South Franklin Street up to Fifth Avenue, as well as the Willoughby District.
Property proprietors would efficiently pay out about a quarter of the existing assets tax level, 2.65 mills instead of 10.66, on the housing portion of new improvement, prorated by sq. footage. The tax crack would expire right after 12 years.
In a memo, town workers claimed only a few new housing models have been produced in the region above the very last five decades.
“It will clearly show to the non-public sector and not just area home owners but hopefully outside the house developers, way too, if they’re interested, that Juneau implies business enterprise,” said Jill Maclean, who sales opportunities the city’s Group Advancement Section. “And the housing, we know is crucial to preserving downtown energetic, and maintaining people today here, holding the (Legislature) listed here — we need them.”
She talked about the proposal with the Juneau Assembly Lands and Resources Committee on Monday.
Chief Housing Officer Scott Ciambor explained it could consider numerous yrs for the tax break, which they’re contacting “downtown tax abatement,” to direct to new housing. But it could get the ball rolling.
“Downtown tax abatement now gets all of the house homeowners to just take a second glance at their possess attributes for development of housing. Does it fit? Could they do some thing?” Ciambor mentioned.
The tax break is extremely related to an present 1 for assisted living for senior citizens. That tax crack helped the 49-device Trillium Landing elaborate in the Mendenhall Valley open up in 2017.
The committee despatched the proposal to the total Assembly for introduction. A community hearing and vote would stick to at a later assembly.