RSA 79-E passed the City Council!

Rochester Main Street Instrumental in Securing the Community Revitalization Tax Relief Incentive

 Through the efforts of the Economic Restructuring Committee of Rochester Main Street, the City Council was given enough information to see the value in enacting this piece of legislation. It is designed to be one more tool to help building owners continue the process of contributing to downtown revitalization.

This legislative proposal encourages investment in downtowns and village centers with a new tax incentive modeled on existing New Hampshire statute (the so-called Barn Bill). Its goals are to encourage the rehabilitation and active use of under-utilized buildings and, in so doing, to

• promote strong local economies and

• promote smart, sustainable growth, as an alternative to sprawl, in accordance with the purpose and objectives of RSA Ch. 9-B (State Economic Growth, Resource Protection, and Planning Policy).

How it works:

• A property owner who wants to substantially rehabilitate a building located downtown, or in the villages of Gonic and East Rochester, may apply to the City Council for a period of temporary tax relief.

• The temporary tax relief, if granted, would consist of a finite period of time during which the property tax on the structure would not increase as a result of its substantial rehabilitation. In exchange for the relief, the property owner grants a covenant ensuring there is a public benefit to the rehabilitation.

• Following expiration of the finite tax relief period, the structure would be taxed at its full market value taking into account the rehabilitation.

The legislation offers strong community process and discretion:

• Applications by property owners are made to the City Council and are accompanied by a public notice and public hearing.

• The City Council may grant tax relief if the application meets the guidelines and public benefit test.

• The governing body may deny the application in its discretion: “..such denial shall be deemed discretionary and shall not be set aside by the board or tax and land appeals or the superior court except for bad faith or discrimination.” (79-E:4 V)

Qualifying properties: A property owner can apply for the tax relief only if:

• The building is located in the Rochester’s downtown district, or the village centers of Gonic and East Rochester, or

• The rehabilitation costs at least 15% of the building’s pre-rehab assessed value, or $75,000, whichever is less, and

• The rehabilitation is consistent with the Rochester’s master plan or development regulations.

For more information, contact: Chip Noon, Rochester Main Street Director at (603) 330-3208, cnoon@rochestermainstreet.org; or Kenn Ortmann, City of Rochester planning director at (603) 335-1338, kenn.ortmann@rochesternh.net.