A proposed tax exemption for subdivision developers will go to a third public hearing on March 8.
The Haines Borough Assembly voted 4-3 on Tuesday to amend the proposed ordinance that would establish a five-year property tax exemption on unsold and undeveloped lots in new subdivisions.
Originally the exemption would have applied only to long-plat subdivisions of more than four lots. The amendment lowered the bar to three or more lots, but with the requirement that the developer convert his or her subdivision into a long plat, which requires roads and utilities, with some exceptions.
Haines Borough Mayor Douglas Olerud and borough manager Annette Kreitzer, who spoke earlier this month about the tax exemption with representatives from other municipalities at Alaska Municipal League in Juneau, suggested postponing a decision as they gather more information about options for improving on the proposed ordinance. “We’re still trying to (understand) what we’re allowed to do. Since we’ve been told by a lot of developers that five years wasn’t long enough, Ms. Kretizer feels that in two weeks we’ll have a better understanding” of the borough’s options, Olerud said.
For example, the Fairbanks North Star Borough, Olerud said, has an exemption of 10 years for multi-family housing developments, but Haines Borough staff are working through questions about how to make sure policy aligns with state statute.
Mayor Olerud joined assembly members Tyler Huling, Caitie Kirby and Debra Schnabel in support of the amendment.
Assembly member Cheryl Stickler originally made a motion to amend the ordinance by extending the tax exemption to subdivisions of three or more lots regardless of plat status. Stickler cited language in the ordinance’s summary statement, which says the exemption is intended to “incentivize the development of subdivisions” because Haines doesn’t have enough housing.
Olerud said the intention of the housing working group, which recommended the idea to the assembly last month, was to incentivize not only the creation of subdivisions but ones with roads and utilities. Olerud said he has heard from developers that investing up front in roads and utilities, which increase property values, can be cost prohibitive without certainty that taxes won’t be owed until properties have been sold.
Stickler suggested clarifying that only “available” utilities be required for tax-exempted subdivisions since many lots in the townsite don’t have access to all of the borough’s utilities. Assembly member Gabe Thomas also said he preferred including flexibility in the ordinance to accommodate properties where conventional utilities aren’t possible to develop.
With Tuesday’s amendment, the draft ordinance doesn’t explicitly mention utilities, but says that developers of three- or four-lot subdivisions who want the tax exemption must file their developments as long plats. While long plats generally require installment of roads and utilities, borough clerk Alekka Fullerton said code allows for exceptions based on availability.
Don Turner Jr. at a Feb. 8 assembly meeting asked the assembly to consider lowering the bar for the tax exemption. “(This ordinance) leaves out small developers, especially like I am. I have a parcel that was set up and roads in it and it’s only suitable for four lots even though it’s 7.5 acres,” Turner Jr. said. “I’d like to entertain the idea that you go to three or four lots and not crowd out the small people that don’t have half a million dollars to do this kind of stuff.”
In other news, Kreitzer reported that the borough is eligible for up to $100,000 in insurance for the Small Boat Harbor gangway, which was damaged in January and will require a repair estimated at over $200,000.
The borough was reimbursed $5,000 from the state for clearing fire hydrants during the January snowstorm that was declared a disaster emergency by Governor Mike Dunleavy.
The assembly voted unanimously to adopt resolutions expressing support for efforts to obtain full funding for the Lutak Dock renovation and a new public safety building—the borough’s two biggest infrastructure priorities.
The assembly unanimously voted to forward to the planning commission recommendations from the code review commission regarding Mud Bay zoning code, specifically new definitions of “commercial enterprise” and “events venues.”
The assembly voted unanimously to introduce an ordinance recommended by the Government Affairs and Services Committee to “clean up” inconsistencies in heliski code, including details about helicopter allocation and rules for transferring helicopters among operators.
Following borough manager Kreitzer’s request, the assembly voted to postpone adoption of an updated heliski administrative policy. Kreitzer said the borough is waiting to incorporate language from the U.S. Bureau of Land Management regarding a policy that requires heliski operators to report wildlife sightings. The new policy would require that operators submit GPS data, includings points taken at a minimum every two minutes, when requested.
As part of a new program, the borough is accepting capital improvement project suggestions from the public until March 1. Ideas can be submitted at https://www.hainesalaska.gov/cip-suggestions.
The Personnel Committee evaluated Kreitzer in executive session on Tuesday. Committee member Paul Rogers said that Kreitzer “has met our expectations” and that a summary of the evaluation will be made available to the public.