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City Council Approves Tax Credit, that it Previously Granted in Error

At last night’s meeting, the City Council voted to grant a partial 50% tax credit to Gilbane for the Tempo student housing development. Councilmembers Kennedy, Esters, Rigg and Day voted in favor, Councilmembers Kabir, Dennis, Mitchell, and Mackie voted in opposition. Mayor Wojahn broke the tie by voting in support of the application.

Last month, the Council adopted Ordinance 21-0-03 (by a 5-3 vote) which authorizes the waiver of the student housing exclusion when a Revitalization Tax Credit is approved in error to a multifamily housing project intended for undergraduate students. You can read more about the discussion and vote here on my blog.

Earlier, Gilbane requested the City make this project eligible for the full tax credit $571,020 in projected tax savings over a five-year period. During the March 16, 2021 Council Worksession, a Council majority indicated support for a partial Revitalization Tax Credit for Tempo at 75% of the full credit. The Council will consider approving the tax credit at tomorrow’s meeting.

More than a year ago, along with entire Council colleagues, I supported giving Gilbane the full tax credit. At that time, we all assumed that Gilbane satisfied the tax credit criteria – which says a graduate housing qualifies to get a tax credit

Later in summer last year, we found we were wrong Because Tempo was an undergraduate housing – which does not qualify for a revitalization tax credit. Last night, we voted to grant a tax credit to Gilbane not because Gilbane said the Tempo will be a graduate housing, but rather to address an error we made. Though I appreciate the partnership the City has with Gilbane, I could not agree with the new basis for granting the tax credit.

My thanks to everyone who wrote to us and testified at the meeting.

 

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