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287 <br /> <br />included in the ~30,332,733 budget figure and the budget <br />represents a $455,000 increase in operating costs and $1 <br />million increase for PREP and hospitalization. <br /> <br />REPORT: MACAA REQUEST FOR FUNDING FOR YMCA PROPERTY <br /> <br /> Mr. Ken Ackerman~ Executive Director for the Monticello <br />Area Community Action Agency (MACAA) stated that MACAA's <br />request for funding from the City had been reduced to <br />$200,000 plus a tax exemption . Mr. Ackerman stated that <br />Albemarle County has approved $140,000 and the Perry <br />Foundation has pledged $100,000, both contingent on receiving <br />City funds. Mr. Ackerman stated that he will be appearing <br />before the Charlottesville Industrial Development Authority <br />requesting industrial development bonds. Mr. Ackerman stated <br />that he felt the tax exemption should be granted since the <br />property has been exempt for many years and therefore no loss <br />of revenues to the City will result and noted that if the tax <br />exemption is not granted then an additional $155,000 will be <br />needed for the purchase of the property. Mr. Ackerman stated <br />that the bank will not accept Council's intention to grant a <br />tax rebate on an annual basis as a secure form of backing. <br />Mr. Ackerman stated that while the cost estimates are not <br />fine tuned~ planned renovations could be delayed if the cost <br />is too high. <br /> <br /> Mr. Hendrix explained that the City's Finance Director <br />has looked into the financing issues involved in the purchase <br />of the property by MACAA and concurred that the numbers will <br />work, but only if MACAA is granted a tax exemption or the <br />City provides the additional funding. Mr. Hendrix stated <br />that the $200,000 requested by YkACAA could be taken out of <br />the FY 92/93 and FY 93/94 capital budget. Mr. Hendrix <br />stressed that no hard dollar figures were available for the <br />renovation of the YMCA facilities. <br /> <br /> A .discussion was held regarding the implications of <br />granting tax exempt status and Mr. Ackerman stated that he <br />had been informed by Delegate Mitchell Van Yahres office that <br />tax exempt status could be property-specific. <br /> <br /> Ms. Slaughter stated that she favored granting the <br />$200,000 to MACAA but not a tax exemption. <br /> <br /> Mr. Toscano questioned whether there were facilities on <br />the YMCA site which the City could lease long-term which <br />would add funding and might be accepted by the bank. <br /> <br /> Mr. Hendrix stated that an additional option might be to <br />investigate purchasing part of the property from MACAA. <br /> <br /> Mr. Ackerman stated that he had spoken with Parks and <br />Recreation about possible leasing of space but they expressed <br />no interest at the time. Mr. Ackerman noted that the profit <br />realized from renting space for the proposed Teen Center <br />would be minimal due to needed renovations. Mr. Ackerman <br />stressed that MACAA's desire to purchase the property did not <br />indicate that they wanted to'become major property managers. <br /> <br /> Rev. Edwards stated that he would support granting a tax <br />exemption to MACAA since the property has not been on the tax <br />rolls. <br /> <br /> Ms. Slaughter stated that she supported making an <br />exception of the policy not to grant additional tax <br />exemptions to the Paramount Theater b~cause of the economic <br />development opportunities but did not feel that a similar <br />situation existed with MACAA. <br /> <br /> Mr. Hendrix stated that if time was available staff <br />could explore alternative funding for MACAA and could also <br />look into the possibility of purchasing the property adjacent <br />to the bypass if the majority of Council did not favor <br /> <br /> <br />