CID draws support, criticism from property owners

A Community Improvement District for downtown was the subject of lengthy discussion at the July 6 City Council meeting.

A public hearing was held on the proposed self-taxing district at the meeting, and drew comments from stakeholders in the downtown area. Allen Casey, who led a Community Improvement District steering committee and is refurbishing the Sterling Hotel downtown, said the group had gained the necessary signatures from downtown property owners to approve the district.

As part of the CID formation process, approving signatures of 50.1 percent of the property owners representing 50.1 percent of the total assessed valuation of property in the district must be collected. The steering committee has been gathering signatures for the past few months and has gathered those of about 110 property owners representing 70 percent of the assessed value in the district, Casey said.

Council must approve the formation of the district, and a vote is expected in two weeks. If the effort is successful, the district will replace the Special Business District, which is also a downtown improvement district, but is smaller in size and limited to managing public parking.

The CID, if approved, will use the tax money collected from the downtown property owners to manage parking, clean the downtown area, and enhance the appearance of downtown, said steering committee member and downtown advocate Brian Fogle, who was among those speaking in favor of the ordinance.

"These are the basic fundamentals. There are lots of great things we want to do in downtown, but we have to walk first, and this will get us there. If we do not act now, we will lose this opportunity. These CIDs are proven tools across the world," Fogle said.

The group has proposed two zones for the district, both in the downtown area. Zone 1, which is in the immediate downtown area, would receive a higher rate of taxation and therefore of benefits. Zone 1 will be taxed at a rate of $.747 per $100 of value plus $7.38 per linear front foot. Zone 2 property owners will pay the same per assessed value, but will pay $1.05 per linear front foot.

Among the speakers against the district were property owners from Zone 2, who were concerned about the proposed benefits for that zone.

"Zone 2, which will be assessed at a lower rate, is a primarily industrial area. It is my understanding that the benefits to Zone 2 will be peripheral benefits. In fact, Zone 2 will receive almost none of the benefits," said Steve Stepp, a Zone 2 property owner.

Other opponents of the district were downtown property owners Devon Sherwood and Larry Rosenbaum, who argued for more parking instead of increases in taxes.

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