By ARCHIE MOUNTAIN
NEWPORT — With the passage of Article 22 at the May 8th Newport Town Meeting, Newport will be in a better position to attract new business by revitalizing the Downtown area and parts of Sunapee Street, North Main St. and South Main Street.
“We’d then be able to compete with communities like Claremont and Lebanon who already have the provisions of New Hampshire RSA 79-E in place,” said Julie Magnuson, Newport Planning and Zoning Administrator.
If approved by the town meeting, this article will remain in effect until rescinded by majority vote of a future town meeting.
Upon receipt of an application for tax abatement, the Board of Selectmen will hold a public hearing to determine whether the structure is a qualifying structure, whether the proposed rehabilitation qualifies as a substantial rehabilitation and whether there is a public benefit to granting the requested tax relief.
The RSA gives the Board of Selectmen another tool to encourage reinvestment in the designated area. The abatement delays the additional tax on the qualifying rehabilitations for a defined period of time.
“This is another tool in the tool belt for economic development essentially freezing property taxes for up to five years,” Magnuson stated.
“We want to attract and retain projects that enhance our Downtown that are at a disadvantage if we don’t have it.
“A lot of times companies wanting to come to Newport are also looking at Claremont and Lebanon and we are not in the running, so to speak,” Magnuson added.
With passage of Article 22, the Newport Board of Selectmen will be able to consider requests for community revitalization tax relief incentives. Tax relief may only be granted for a “qualifying structure” as defined in the law
If adopted, the selectmen shall have the option of granting property owners in the designated areas short-term property assessment relief to encourage substantial reinvestment in underutilized structures.
In order to qualify an applicant will have to show that the property is in an eligible area, that it is a substantial rehabilitation, and that there is a public benefit.
In Newport, the area defined includes the properties located in the Downtown State Historic District, the Downtown National Historic District as well as historic property along Sunapee Street.
Substantial rehabilitation has been defined locally as rehabilitation costs of at least 15 percent of the building’s pre-rehabilitation assessed value or $75,000, whichever is less.
The state statute requires that the proposed substantial rehabilitation must provide at least one of the five public benefits that are defined as enhancing economic vitality of a downtown enhancing and improving a culturally or historically important structure, promoting the preservation and reuse of existing building stock, promoting development of the municipal center, or increasing residential housing.
A municipality that has adopted 79-E may accept applications from property owners who are making improvements that meet 79-E guidelines and vote to authorize tax relief.
The relief, if approved by the Board of Selectmen, maintains the pre-rehabilitation assessed value for a period for up to five years. In exchange, the property owner records a covenant to maintain the public benefit for a set number of years.
“There is a common misconception thinking owners wouldn’t pay property taxes. Essentially there is a freeze on the property before the work is done for a period of time on a case-by-case basis,” Magnuson revealed.
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