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20030128 2003-5ORDINANCE NO. 2003- 5 AN ORDINANCE AMENDING DIVISION 5, ARTICLE II, CHAPTER 90, SECTIONS 90-126, 90-132, AND 90-133 OF THE CITY CODE PERTAINING TO A PARTIAL REAL PROPERTY TAX EXEMPTION FOR SUBSTANTIALLY REHABILITATED STRUCTURES BE IT ORDAINED, by the City Council of the City of Fairfax, that Division 5, Article II, Chapter 90 of the Code of the City of Fairfax, Virginia, is hereby amended in part to read as follows: ARTICLE II. Division 5. SUBSTANTIALLY REHABILITATED STRUCTURES Sec. 90-126. Definitions. For the purposes of this division, the following words and phrases shall have the meanings respectively ascribed to them by this section: Exemption district means: (1) (2) (3) The Old Town Fairfax Historic Overlay District as defined in section 110-951. The Old Town Fairfax Transition Overlay District as defined in section 110-1042. The Highway Corridor Overlay District as defined in section 110-872. Rehabilitation or rehabilitated mean the original structure has been completely demolished, unless the original structure is a historic structure designated in accordance with section 110- 951. Sec. 90-132. Commencement of exemption; land books. (a) The exemption shall commence in the tax year following the_completion of the rehabilitation, inspection thereof by the assessor or his designee, verification by the assessor or his designee that the rehabilitation described in the application has been fully completed, and a determination by the city manager or his designee that the requirements of this division have been met. (b) Nothing in this division shall be construed to permit the assessor to list upon the land books any reduced assessed value due to the exemption created by this division. Sec. 90-133. Amount, duration, schedules, retail criteria. (a) Old Town Fairfax Historic Overlay District: (1) The amount of the exemption shall be determined in accordance with the definition thereof in section 90-126 and schedules in this subsection. (2) The increase in assessed value attributable to the rehabilitation shall be applicable only to any subsequent assessment or reassessment after completion of the rehabilitation. An increase in an assessment occurring after the first year of the exemption shall not result in an increase in the exemption. (3) The exemption shall run with the real estate for a period of ten years according to the following schedules: Year Amount of Exemption For Structures Meeting Retail Criteria in (4) (percent) Amount of Exemption For Structures Not Meeting Retail Criteria in (4) (percent) First--Fifth 100 50 Sixth 83 42 Seventh 67 34 Eighth 5O 25 Ninth 33 17 Tenth 17 9 (4) The retail criteria are: a. At least 75 percent of the gross square footage of the street level floor or floors of the structure are used for retail purposes. b. As used in this section, the term "retail" means the sale of merchandise, food, beverages or lodging for use or consumption by the immediate purchaser. (b) Highway Corridor Overlay District and the Old Town Fairfax Transition Overlay District: (1) The amount of the exemption shall be determined in accordance with the definition thereof in section 90-126 and schedules in this section. (2) The increase in assessed value attributable to the rehabilitation shall be applicable only to any subsequent assessment or reassessment after completion of the rehabilitation. An increase in an assessment occurring after the first year of the exemption shall not result in an increase in the exemption. Year Amount of Exemption (percent) First--Fifth 100 Sixth 83 Seventh 67 Eighth 50 Ninth 33 Tenth 17 (3) To qualify for an exemption in the Highway Corridor Overlay District under this subsection (b), the proposed rehabilitation shall meet each of the following criteria: a. The rehabilitation shall comply with the building and site design and landscape criteria contained in the Lee Highway component of the Community Appearance Plan and with all applicable provisions of this Code. l b. The substantially rehabilitated commercial structure shall be used for research and computer sofl:ware firms, national associations, corporate headquarters or other uses permitted, by right or by special use permit, in the underlying zoning district. BE IT FURTHER ORDAINED that this ordinance shall become effective on adoption as provided by law. INTRODUCED: January 14, 2003 PUBLIC HEARING: January 28, 2003 ENACTED: January 28, 2003 Mayor Date C ATTEST: The vote to adopt the ordinance was recorded as follows: Councilwoman Cross Councilman Greenfield Councilwoman Lyon Councilman Rasmussen Councilman Silverthome Councilwoman Winter Vote Aye Aye Aye Aye Aye Aye