Title
Ordinance to Continue to Impose a Business Improvement Tax in the Amount of $.07 per $100.00 of Assessed Value on Certain Commercial Properties, Subject to Real Estate Taxation, Within the Boundaries of the Coliseum Central Business Improvement District, Which Tax Shall be in Addition to all Other Taxes and Fees as May be Imposed by Law for the Period from July 1, 2021 to June 30, 2031
Purpose
PURPOSE/BACKGROUND:
The Coliseum Central Business Improvement District (formerly the Mercury Central Business Improvement District) was established by ordinance in 1995. At that time the tax rate was established at four cents ($.04) per one hundred and 00/100 dollars ($100.00) of assessed value on certain commercial properties, for a period of five years. Effective July 1, 2001, the tax was renewed at the rate of seven cents ($.07) for a period of five (5) years. An additional five (5) year renewal was also approved and went into effect on July 1, 2006. Effective July 1, 2011 the tax was renewed at the same rate for a period of ten (10) years. The Coliseum Central Business Improvement District is now requesting that Council again adopt an ordinance to continue the tax at that same rate for an additional period of ten (10) years to expire on June 30, 2031.
The Coliseum Central and Downtown Business Improvement Districts (“BIDs”) were created in 1995. They 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.
The public hearing necessary to adopt a tax rate was duly advertised in the Daily Press on October 15, 2020 and October 22, 2020. Pursuant to Hampton City Code Sec. 2-50, no ordinance imposing taxes shall be passed on the same day of its introduction. This ordinance is being introduced on October 28,2020. Final approval will be requested at City Council's meeting on November 12, 2020.
Discussion:
See Purpose/Background above.
Impact:
Continues financial support for economic development services, promotion of business, 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 Coliseum Central Business District.
Recommendation:
Rec
October 28, 2020: Conduct a public hearing; approve for first read only.
November 12, 2020: Final approval.
Body
WHEREAS, the City Council for the City of Hampton, Virginia has established the Coliseum Central Business Improvement District (formerly the Mercury Central Business Improvement District) pursuant to Sections 15.2-2400, 15.2-2402 and 15.2-2403 of the Code of Virginia, to include commercial properties (excluding manufacturers, residential properties, and multi-family dwellings) within those then established geographical boundaries;
WHEREAS, a special tax on those certain commercial properties within said Coliseum Central Business Improvement District, subject to the real estate tax, is necessary and appropriate to provide financing to said District, to be used by the District 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 Coliseum Central Business Improvement District; and
WHEREAS, since its enactment in 1995, that special tax has been imposed and now Council is being asked to continue to keep it in effect to support the district.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF HAMPTON, VIRGINIA, that there is hereby imposed a special Business Improvement District tax in the sum of seven cents ($.07) per one hundred and 00/100 dollars ($100.00) of assessed value on those certain commercial properties, subject to real estate taxation, within the boundaries of the said Coliseum Central Business Improvement District, which tax shall be in addition to all other taxes and fees as may be imposed by law. The Business Improvement District tax 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.
This ordinance shall take effect on and after July 1, 2021, and shall expire on June 30, 2031, unless sooner amended or repealed by the City Council.