1992-12-21 - Laserfiche WebLink

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246 WHEREAS, this Council has considered whether the property of the AIDS Support Group should be exempt from taxationt after a public hearing duly advertised as required by S.30-19.04 of the Virginia Code, held on December 21, 1992; and examined and considered the provisions of S.30-19.04(B) of the Virginia Code; and .~ WHEREAS, this Council passed a resolution on December 19, 1988, declaring that it will not support property tax exemptions in the future because it is a form of subsidy and Council preferred to process all subsidies through the annual budget process; NOWt THEREFORE, BE IT RESOLVED by the Council of the City of Charlottesville that the Council hereby declines to endorse, support and approve the adoption of an amendment to Title 58.1 of the Code of Virginia exempting certain property owned by the AIDS Support Group from state and local taxation. BE IT FURTHER RESOLVED that the Clerk of this Council is directed to convey certified copies of this Resolution to the members of the General Assembly representing the City. RESOLUTION: SUPPORTING EXEMPTION OF REAL AND PERSONAL PROPERTY TAXES FOR PARamOUNT THEATER AND CULTURAL CENTER, INC. Ms. Slaughter made a motion to approve the resolution supporting a tax exemption for the Paramount Theater Group, with the resolution amended to add the following: 1) It is a major renovation effort with funding from the private sector to improve the interior and exterior of an historical building in the Downtown Historic District; and 2) will provide an economic development opportunity for downtown and the City because: (a) it will be an attraction for tourists as well as for the Charlottesville community at large; (b) it will host additional cultural activity, thereby contributing to the vitality of the downtown; and (c) it will therefore benefit the City through additional sales tax revenues generated by other downtown businesses. Ms. Slaughter stated that she felt these statements are the heart of the reason she would make an exception to the policy against granting tax exemptions. Ms. Daugherty seconded the motion. Mr. Toscano expressed concern that the Council might be rushing the decision to grant the exception since the results of the feasibility study for the Paramount had not yet been reported and the resolution would bind the City to providing a continuous substantial subsidy. Mr. Toscano stated that he would prefer to consider the issue as part of the budget process. Mr. Toscano noted that the policy against granting additional tax. exemptions had been approved by Council in 1988 and had been reaffirmed in 1991. Mr. Vandever stated that while he did not disagree with the tenor of Mr. Toscano's statements, he felt taking action at this time was an important factor for the vitality of the Paramount. Mr. Vandever stated that he felt the taxes would become a serious liability to the success of the project and noted that if the project fails the group operating it will fold and the property would revert back to the tax rolls. Mr. Vandever stated that he felt the project had enough unique aspects to grant the exception to the policy previously adopted by Council. Ms. Daugherty stated that she supported granting the tax exemption~ and felt the City should help given the magnitude of the fundraising effort. Ms. Slaughter stated that she felt the action represented a good investment.