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City endorses tax incentive projects
Klots Mill Lofts, William Booth Tower renovation receive backing
CUMBERLAND — The city of Cumberland took the big-picture approach Tuesday night to three local projects by taking measures that will decrease short-term tax collections — but which should pay off exponentially in the future.
The City Council passed a resolution showing support for the Klots Mill Lofts renovation, which will convert the former silk manufacturing company building at 917 Gay St. into new townhouses. A second resolution expressed support for renovations to the William Booth Tower complex.
The Klots Mill Lofts project would credit Klots Mill Loft LLC approximately $11,200 in property taxes for the next 15 years. The renovation would be funded by the Department of Housing and Community Development or through the department’s Community Development Administration.
City Administrator Jeff Repp said Paul Fitch of The Landmark Group applied for the credit last year but was denied. Repp said the application has been strengthened this time around and once again needed the city’s show of support.
“It looks like it would be a successful application this time,” Repp said.
The William Booth Tower complex, located at 220 Somerville Ave. and being developed by the Hampstead Development Group of San Diego, consists of 114 rental units. The city agreed Tuesday to support a property tax credit of about $22,800 annually for the next 10 years.
Once again, the developer needed the city’s support as part of its application for the Community Development Ass-ociation Federal Low-Income Tax Credit Program.
The city also voted to support an application for the state Historic District Tax Incentive Program for CSB LLC, which owns the commercial property at 157 Baltimore St. The property was valued at $327,000 in February 2005, Repp said.
The city agreed to credit about $15,500 in real estate property taxes each year over the next five years. But the city will begin to collect after that — on property worth an estimated $1.2 million.
Councilmembers also discussed the retirement plans of City Clerk Sharon Clark, whose last day of work will be May 1. Clark said she’s looking forward to spending more time with her husband and two grandchildren, along with recreational activities including golf, cycling and kayaking.
Contact Kevin Spradlin at kspradlin@times-news.com.
