Title
Ordinance to Adopt and Continue the Imposition of Certain Service District Taxes Within the Coliseum Central Business Improvement District, the Downtown Hampton Business Improvement District, and the Elizabeth Lake Estates Service District for Fiscal Year 2026 (July 1, 2025 - June 30, 2026)
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
The Coliseum Central Business Improvement District and the Downtown Hampton Business Improvement District were each established in 1995, and are comprised of commercial properties (excluding manufacturers, residential properties, and multi-family dwellings) within the geographical boundaries then established. Those commercial properties are subject to taxes, which are paid over to the BIDs to be used solely for economic development services, promotion of business and retail development services, beautification and landscaping, public parking, sponsorship and promotion of recreational and cultural activities and such other services, events, or activities which will enhance the public use and enjoyment of and the public safety, public convenience, and public well-being within the BIDs. The lighted street signs in Coliseum Central, the pier lighting Downtown, and new canopy in Mill Point are recent examples of BID initiatives.
Elizabeth Lake Estates is a residential development within the City of Hampton. The community has several large common areas that border major thoroughfares within the City and are accessible to the public. The community was founded as a "covenant community" in 1962, with those common areas owned by the Elizabeth Lake Estates Civic Association (the "Association"). In early 2000, members of the Association approached the City about the possibility of creating a special taxing district that would operate similarly to the Coliseum Central and Downtown Business Improvement District. After the Association sought and obtained the support of the community, the then City Council, believing there was overwhelming support for the initiative and that the entire city would benefit, enacted Hampton City Code Section 37-140, creating the Elizabeth Lake Estates Service District, and imposed a tax to provide a uniform and comprehensive method for collection of funds to provide services which generally enhance the public use and enjoyment of the area and the public safety, public convenience and public well-being within the service district. The benefits expected within the district are to provide a centralized system for addressing common issues; promote a positive image of Hampton as a desirable and outstanding place to live, protect the waterfront to maintain its viability, improve the security of the neighborhood and residents and, protect and increase property values generally.
Service District taxes are imposed and appropriated on an annual basis. The purpose of this resolution is to continue to impose upon the properties in each district subject to a tax those same rates in effect for Fiscal Year 2025, as follows:
Coliseum Central Business Improvement District: $0.07 per $100 of Assessed Value
Downtown Hampton Business Improvement District $0.20 per $100 of Assessed Value
Elizabeth Lake Estates Service District $0.10 per $100 of Assessed Value
The public hearings necessary to adopt a budget and these tax rates were duly advertised in the Daily Press on April 13, 2025 and May 4, 2025.
Pursuant to Hampton City Code Sec. 2-50(c), "No ordinance or resolution, having for its object a tax rate increase, shall be passed on the same day of its introduction, except such a rate may be passed on the same day of its introduction by the concurrence of five (5) members of the council, pursuant to a motion made for that purpose. In addition, in no instance shall the tax rate increase adopted exceed such rate published and advertised prior to its adoption." This ordinance is being introduced on May 7, 2025. Final approval will be requested at City Council's meeting on May 14, 2025.
Impact:
The continued imposition of the above described service district taxes will provide for enhanced benefits for businesses in the Coliseum Central and Downtown Hampton Business Improvement Districts and residents in Elizabeth Lake Estates
Recommendation:
Rec
May 7, 2025: Introduction.
May 14, 2025: Approval.
Body
WHEREAS, the City Council for the City of Hampton, Virginia established the Coliseum Central (formerly Mercury Central) and Downtown Hampton Business Improvement Districts (together the "Business Districts"), and the Elizabeth Lake Estates Service District (the "ELE Service District") pursuant to Sections 15.2-2400, 15.2-2402 and 15.2-2403 of the Code of Virginia, as each may be amended from time to time;
WHEREAS, a special tax is imposed on certain commercial properties within the Business Improvement Districts and on residential properties within the ELE Service District;
WHEREAS, those taxes imposed in each respective districts are to be used solely for those lawful purposes set forth in the Code of Virginia and the ordinances that established each of those districts;
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF HAMPTON, VIRGINIA, that the City levy for the fiscal year beginning July 1, 2025, on each $100.00 of assessed value of real property and improvements thereon that is liable for service district taxes within the Coliseum Central Business Improvement District, the Downtown Hampton Business Improvement District, and the Elizabeth Lake Estates Service District, which tax shall be in addition to all other taxes and fees as may be imposed by law, as follows:
Coliseum Central Business Improvement District: $0.07 per $100 of Assessed Value
Downtown Hampton Business Improvement District $0.20 per $100 of Assessed Value
Elizabeth Lake Estates Service District $0.10 per $100 of Assessed Value
Those service district taxes imposed shall be due and payable on or before June 5 and December 5 of every year for which it is assessed. There shall be interest on such taxes in accordance with Section 37-29 of the Code of the City of Hampton, Virginia; and all those taxes collected shall be appropriated by City Council as part of the adoption and appropriation of the Fiscal Year 2026 Budget.