MOUNT VERNON — Mount Vernon City Council passed an ordinance on Monday that encourages residential development in the city.
Ordinance 2021-39 creates a city-wide Community Reinvestment Area (CRA) that offers tax abatements to property owners who substantially improve their properties and developers who build new housing units. The CRA applies only to residential units, not commercial.
“We have four current developers outside of the Mulberry Street developer that are excited about this,” Sam Filkins, vice president of the Area Development Foundation, told council. “Two are in the city and would like to expand; two are new.”
For existing structures, the property tax abatements range from 50% to 75% depending on location. The length of the abatement is 10 years (one or two housing units) or 12 years (more than three units). Historic homes could receive an additional 10-year extension.
The threshold of remodeling investment is $15,000. The tax exemption applies only to the increased value of the property.
Not all improvements qualify for the tax break. An interior renovation, for example, does not. Exterior improvements, such as room additions, garage, or converting an attic to living space, do qualify.
Essentially, any remodeling that triggers the need for a city permit is eligible for abatement. Property owners who want to apply for an abatement will be able to do so online when they apply for their permits.
For new construction on lots with utilities present, abatements are 50% to 75% for 15 years for single units and structures with more than three units. Dwellings that contain more than three units are eligible for a 100% abatement if the developer agrees to make payments in lieu of taxes (PILOTs) to the Mount Vernon school district and Knox County Career Center.
A housing council will oversee the abatements. The housing council consists of two members appointed by council, two by the mayor, and one by the Municipal Planning Commission. That group will then appoint two at-large members.
The ordinance passed on its third reading, as did an ordinance updating the city’s codes. Council also passed several pieces of legislation as emergencies:
•A resolution authorizing the city to apply for an Ohio Public Works Commission Capital Improvement Program grant to upgrade the Mansfield Avenue traffic signals at Belmont and Nash/Nuce
•Fund transfers and supplemental appropriations
•Appointment of Lauren Heffelfinger to the city’s Recreation Board
•A resolution authorizing the sale of K9 “DJ” to its handler for $5,000. The handler will be leaving the Mount Vernon Police Department, and it is in the best interests of the K9 and the city to sell the K9 and buy a new K9.
Council gave readings to five additional pieces of legislation:
•Second readings to ordinances adopting a city compensation model, creating the positions of assistant engineer and engineering project manager, and setting the salary of the public utilities director and assistant public utilities director
•First readings to legislation authorizing the city to enter into a contract for Interim Risk Reduction Measures (IRRM) for the Knox Cattle Company Dam and accepting the annexation of 1.85 acres in Monroe Township into the city
Planning and Zoning Committee
Council discussed Ordinance 2019-27, which relates to solving chronic nuisance activities. The ordinance defines chronic nuisance properties as property on which three or more nuisance activities and/or two felony drug activities have occurred during any six month period; or property on which any person associated with the property has engaged in three or more nuisance activities within any six month period.
The ordinance provides for the police department to send a letter to the property owner when his/her property meets the definition of a chronic nuisance. It also provides for penalties should the property owner fail to comply with an order to remedy the nuisance activities.
Councilman Mike Hillier said the ordinance was drafted to clean up properties, keep properties from becoming drug houses, and hold property owners responsible for allowing nuisance activities to occur. However, that is not happening.
“To my knowledge, we have not cited or sent a letter out relating to this ordinance,” Police Chief Robert Morgan said. “Just because there is law enforcement activity or noise activity at the house, it may not trigger a letter.”
Morgan said part of the problem is that the ordinance requires a violation (citation) to trigger a letter. Additionally, tracking all of the activities and time frames is a huge task.
In response to Councilman John Francis’ question whether the ordinance can be modified enough to enforce or whether it is better to start from scratch, Morgan said, “I do not think this ordinance is the tool to use for what you folks are looking for.”
Hillier, Morgan, and Law Director Rob Broeren will meet to review the ordinance and decide what it will take to hold property owners accountable for nuisance activities.
Employee and Community Relations
Council member Samantha Scoles, committee chair, asked for council’s thoughts on ordinances 2021-41 (creates the positions of assistant engineer at a salary range $70,000-$80,000 and project manager at a range of $48,000-$55,000) and 2021-43 (sets the salary range for public utilities director at $70,000-$80,000 and assistant utilities director at $60,000-$70,000).
Both engineering positions (estimated around $120,000) would be paid out of the amount budgeted for contract engineering services ($993,000 in 2021). If council creates and fills the positions, council will reduce the 2022 contract engineering line item to around $873,000.
Francis said he felt council should fill vacant positions before creating new ones or giving all employees raises.
Council member Tammy Woods disagreed, noting that as chair of the Utilities Committee, she has learned how much the city spends contracting out for engineering services. She supports the assistant engineering position because it will reduce the amount contracted out and said that the position would pay for itself.
Councilwoman Janis Seavolt agrees with the assistant engineer position but prefers a set salary of $70,000 vs a salary range. Hillier has no problem with the two positions but wants to make sure that if the positions are created and filled, that the 2022 budget does not still reflect the $993,00 for contracted services. He agrees with a set salary vs a range.
Council member Amber Keener said adding capable bodies is important and would help in reducing contracted services and alleviating stress in the engineering department. Council member Julia Warga believes the two engineering positions would be helpful.
Both ordinances are up for a third reading at council’s Nov. 8 meeting.
