(a) The City of Freeport authorizes and directs the County Clerk to abate ad valorem taxes imposed upon real property, located within the Enterprise Zone area, upon which new improvements have been constructed or upon which existing improvements have been renovated or rehabilitated, subject to the following conditions:
(1) No abatement of taxes on any parcel shall exceed the amount attributable to the construction of the improvements and the renovation or rehabilitation of existing improvements on such parcel;
(2) Abatement for commercial property shall be at a rate of 100 percent of the value of the improvements for the first three years following the assessment year in which each improvement is completed. However, commercial property may qualify for an additional three year real estate tax abatement of 100% for the fourth year, 66% for the fifth year and 33% for the sixth year followed by a full property tax bill in the seventh and successive years, if the commercial property satisfies the cost benefit standards for extended real estate tax abatement established by the City-County Enterprise Zone Committee, which is created in Section 899.07, after considering various factors, including, but not limited to, the amount of increase in assessed valuation of the commercial parcel, and these standards are to reflect the benefits to the community resulting from the construction or expansion of the commercial parcel;
(3) Such abatement for industrial property shall be at the rate of 100 percent of the value of the improvements for the first five assessment years following the year in which the improvements are made, after which time full tax liability is re-established. However, industrial property may qualify for an additional real estate tax abatement of fifty percent of the value of the improvements for a maximum of an additional four years following the first five assessment years of total real estate tax abatement if the industrial property satisfies the cost benefit standards for extended real estate tax abatement established by the City-County Enterprise Zone Committee, which is created in Section 899.07, after considering various factors, including, but not limited to, the amount of increase in assessed valuation of the industrial parcel, and these standards are to reflect the benefits to the community resulting from the construction or expansion of the industrial parcel;
(4) The abatement is allowed only for improvements that require a building permit and only for improvements for which such a permit has been obtained;
(5) Such abatement shall continue and be in full force as set forth in this section for any improvements which are completed within the term of the Enterprise Zone as specified in Section 899.02; and
(6) Such abatement for residential property improvements within the area of the Zone shall be at the rate of 100 percent of the value of the improvements for the first three assessment years following the year in which the improvements are made.
(b) As used in this section, the term "commercial property" shall mean any parcel of land being utilized or proposed to be utilized for any activity classified as a permitted use under Chapter 1252 (Business Districts) of the Planning and Zoning Code, excluding any permitted residential use.
(c) As used in this section, the term "industrial property" shall mean any parcel of land being utilized or proposed to be utilized for any activity classified as a permitted use under Chapter 1254 (Manufacturing Districts) of the Planning and Zoning Code, excluding those activities classified as permitted uses under Chapter 1252 (Business Districts) of the Planning and Zoning Code, and also excluding any permitted residential use.
(Ord. 89-77. Passed 12-18-89; Ord. 2002-09. Passed 3-4-02.)