Good evening, everyone. Welcome to the Committee on Finance regular meeting. It is Tuesday, 12/30/2025 at 05:33PM. Madam Kirk, would you kindly?
Present. Vice Chairman Taylor is absent. Councilor Angela Blath? Present. Councilwoman Graves is absent.
Councilor Sanchez? Present. We have three present and two absent. We have one.
Good. Let the record reflect that we are joined this evening by councilman Austin Vargas. Thank you for joining us.
As well as our chief financial officer, Larry Nassidi, and our staff by our famous city solicitor. Wow. Who's dance who's dressed very fancy. Yeah.
look. It's a good look. Okay.
Madam clerk, kindly read item one into the record, please.
An ordinance for healing ordinance chapter number 2,019 dash 55 number 54, approved 12/13/2019. As amended, it was voted 2,022 dash 72, number four twenty nine, out of the taking effect on 12/21/2022 entitled an ordinance establishing a tax stabilization agreement for E two thousand Realty LLC located on assessor's Flat 13, Blocks 232233234, And 235541 Hawkwood Avenue. Okay. Who do we have here today?
Chief, will you testify in this matter? Hello. The administration?
You're about to give you the truth. Truth that often not on the truth. Can you please state your name and then put the record?
Laura Smith. She's made to walk to the city of God. Thank you.
Thank you very much, chief.
the matter before us tonight is to repeal a TSA that was given by this body on back as the clerk finally, read 12/13/2019. It's my understanding that the the owner has requested that this matter be repealed. They do not want the TSA. And as I understand it, they have not benefited from the TSA. They're earned.
They haven't built the building. They've earned no earned no tax credit or abatement or any tax advantage. Could you please Yes. Tell us about that?
So, madam Jay, it was initially intended to be a project that included a combination of commercial and residential properties. The owner was unable to secure adequate financing and tried on multiple occasions and then finally had to give away an abandoned project. But in no time during any time to that intervening years of adoption or approval of the tax stabilization and in who in the current year, did they receive a tax bill lower than what the amount of taxes would have been as a result of those change. So in fairness, working with the assessor's office, perhaps spoken briefly to the assistance in solicit many shop. We felt that there was no benefit gain.
Therefore, with all the respect, that there will be no reason to interfere with the cleaning the TSA ordinance in its entirety. And
In its totality. In its totality. Yeah. That's Okay. So
So the administration is in support of that. I briefed the administration. I've worked with the administration. As I said, I've talked to the board about what will be assessed. So in this particular matter, we see no reason why we would we would stand in the opposition tonight.
Okay. Committee members, any questions? No. So we're gonna end it all.
Just a quick question. So have have they been paying taxes on it as a vacant piece of property? Like, they've been paying Yes. It's just That's it. Just the amount of.
no tax benefits. They were making their payments. Yeah. Kathleen always has a question.
Got it. Thank you. Chip, so they've been paying the regular taxes as as being can I have another question?
Are they able to let's say in the future, they can can they reapply again? Can they
I would defer to source about it. I think these matters taken with all that regular setting. Yeah.
I think they could provided they meet the criteria at the at the later date.
Yeah. I I think if they follow the criteria of the source of mentions and they fill proper paperwork, and it's deemed to be a benefit that they would provide to city and city residents. So the area of which is located, I think the council will take it under consideration then again and perhaps arrive at the city of the city. But this one did not move forward because they could not find adequate or substantial financing.
Would be a new application.
Your we'll go this evening, ma'am. We'll go this evening to repeal repeals it in its entirety.
Doesn't do that any well, no. They can come back to the table should they want to or, be in a position. Okay. Constant Sanchez.
Thank you, Joe. Thank you, Jim, for the invitation. My only question is, like, what, like, what what does like, what system or process, like, the city use to, like, kinda keep track of this? Like, it seems like a kind of a long time, but I don't know. Is that kinda
No. Long time? The applications today are generally done online, and there's a range based on classification, based on the size of the project that give that that determines the length that the TSA can be contemplated. And we use the current value as the base year. The first two years are at base.
And then from that point on, we make a determination how they would stabilize and how they could gradually increase over the time of the of of the ratio of the agreement, this ten year agreement. And we always say with the caveat that, that's subject to the change in case during the period of rebound, a building or land should change during that period, then the the calculation will be reset. Again, meant to be the benefit of the city. This is the higher tax that the applicant would have to yield back some of the savings that they were entitled to. It's a pretty straightforward process.
There's a number of documents that must be included. As you may recall, three weeks ago, we gave testimony We have three others at the chair even have scheduled them before a public hearing. And in that regard, with those those documents, we presented the fiscal notes that showed the the stages to the applicants. We discussed them in full. They'll go before a public hearing now and then they'll come back before this committee to be considered there as a vote to be taken out of the committee and then once again before the full council, full votes are those.
So it's a it's an involved process, but one that's necessary as well. Right.
Can I please Yeah? No. I I definitely understand, like, the, like, the kind of, like, a general TSA, but I guess what I'm asking is it, is it out of the ordinary for, projects to get approved at TSA, and then just
because did nothing get notes there? Is that, like, what happened? They're not gonna note. Took when I was Pozani gets a secure financer.
Is that, like, what does that have, like, any, like, implications for
the city? Is it fine? No. I think each individual developer or applicant would need to be assured of themselves, could they complete the project, or do they have the ability of their own means to provide financing or whether they were seeking capital to to a bank or a a I don't know what the conditions were that led to them not being able to secure financing, but I presume it was because either market rates were were not as affordable or needing access to credit capital without it. Mary Mickey?
Yes. Anything else? May I entertain a motion? Motion to, recommend that we repeal this, opinions in its entirety. Second.
