City council members and residents debated the designation of a Neighborhood Enterprise Zone and the demolition of the property at 65 and 65 1/2 Westwood at an Oct. 21 city council meeting.
The NEZ reduces the tax burden, up to half of property taxes, on existing homes that undergo repairs and remodeling. It also offers an incentive to prospective homeowners to build and develop the properties in the zone.
The NEZ would extend south from Bacon to Barnard streets, with the eastern boundary as Wolcott Street and the western boundary as Griswold Street.
“We have a number of houses down there that are delighted and would benefit from the rehabilitation part of the NEZ,” said Kim Thomas, Hillsdale’s city assessor.
Residents in the zone, however, expressed frustration with the proposed tax cut.
“It doesn’t appear that my neighbors are going to be investing any money into their homes in the near future,” resident Patty Palmer said.
Instead, residents expressed anger that higher-income families would receive tax relief, while lower-income residents wouldn’t.
“I’ve owned property here since 1976, and I put a brand new house there,” resident Michael Beard said. “What kind of deal will I get out of it?”
The tax breaks are targeted for higher-income housing than most homes in that area.
“Everybody should pay their fair share of taxes so we can improve our streets,” Palmer said. “Our area is probably one of the lower tax rates in the area.”
Councilmember Bruce Sharp, who also lives in the neighborhood, agreed with the concerns about unequal benefits.
“That’s really not fair to people who pay their property taxes every year,” Sharp said. “Someone else is going to get a benefit when their houses are worth three times as much as my home.”
The NEZ was developed as a public act in 1992 to provide property tax incentives for development and rehabilitation. The state law says only 15% of the city can be under a NEZ zone.
Hillsdale has implemented NEZs before, the first being property in the Three Meadows subdivision near downtown. The city used tax breaks in an effort to complete the development.
Sharp noted the city is still only in phase one out of five for the Three Meadows subdivision. Three more houses need to be developed before the next stage can begin.
“It’s been over 20 years and we’re still only at nine houses built in those years,” Sharp said. “At this rate, it’s going to take a hundred years.
A NEZ on West Street also has suffered from slow progress, according to Thomas. The city approved the zone to encourage growth near the college.
“We did one on West Street to encourage rehabilitation,” Thomas said. “That hasn’t worked yet, but we’re hopeful.”
The council agreed to discuss the NEZ further at its next meeting and encouraged residents to come voice their concerns during public comment.
The meeting turned to the demolition of the 65 Westwood property, which was condemned in an Aug. 5 resolution. The council granted an extension of 60 days to Marvin Salyer, the owner of the rundown home.
Sharp expressed frustration that demolition still hasn’t begun.
“It’s time for that thing to be torn down and be done,” Sharp said.
Salyer said he is working to finance the project and find a contractor.
“I’ve been working a lot and trying to save money,” Salyer said. “I’m trying to get the cash to get this fixed.”
Sharp, who lives three doors down from the house, has led the fight to get it torn down.
Salyer agreed to secure a contractor and report on the progress at the next meeting.
“We have rules in place for a reason; let’s enforce them,” Sharp said. “The 16th is coming up and I would love to have this done.”