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Gainesville approves tax incentives for two midtown developments
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The Enclave housing development in midtown Gainesville, sits directly across the road from the Gainesville Housing Authority's apartments on Martin Luther King Jr. Boulevard. - photo by Scott Rogers

Update, July 21: The Gainesville City Council approved these developments for the city's Midtown Tax Allocation District at a July 21 meeting.


Two projects in midtown Gainesville — an expansion of a townhome community and a new commercial space — could soon get a boost from a city tax incentive program. 

The Gainesville City Council will vote Tuesday, July 21, on whether the developments will join the Midtown Tax Allocation District. 

Properties that are approved for the TAD are taxed at the rate established in the TAD’s base year, which is 2006 for midtown. When a property is developed, its value will increase, and so will its taxes. The higher amount paid in property taxes instead goes into the TAD fund for the agreed time. Developers or property owners can use money from the TAD fund to pay for improvements to the property. 

The Enclave, a townhome community first completed in 2017, includes 45 townhomes but will soon have a second phase. Developer Steve McKibbon hopes to add an additional seven homes on Wills Street.  

The second phase is a $1.1 million project, and the city’s TAD committee approved a request of about $93,000 in a June meeting. The funds will help pay for several parts of the development, including demolition and grading, fencing and sidewalks, according to the request approved by the committee.  

If approved, $25,000 of the funding will be given upfront for demolition and grading. The remaining $68,000 would be paid in increments annually over a maximum of 15 years.  

 

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The revitalization of a vacant 11,044-square-foot building into modern professional office space in midtown Gainesville could be aided by the city's tax allocation district. The Gainesville City Council will vote Tuesday, July 21, on whether the developments will join the Midtown Tax Allocation District. Courtesy The City of Gainesville

The second project would turn an empty building in midtown to a new home for a local business, according to a presentation given to the TAD committee June 9. Lamb, Britt, Gilmer and Associates, a local sales and marketing company, wants more space and has plans to relocate within Gainesville and renovate a brick building at 743 Main St. The company employs 20 people at its Gainesville office. 

The total project cost is nearly $1.5 million, and applicant Tim Gilmer requested about $284,000 in TAD funding to pay for several components of the project, including demolition, grading, paving, lighting and relocating power lines. 

However, the project is not estimated to generate that amount over 15 years, city staff said at the TAD committee meeting. It is expected to generate about $150,000, and city staff recommended that $75,000 be paid upfront. Once that $75,000 has been replenished by the TAD increments generated, the applicant can then keep the extra dollars generated above the base value, according to the request approved by the committee. The project can remain in the TAD for a maximum of 15 years.

Gainesville City Council 

When: 5:30 p.m. Tuesday, July 21 

Where: Public Safety Complex, 701 Queen City Parkway 

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