Keene City Council advances 79-E tax relief for 429 Elm Street (2 new homes)
Keene City Council is scheduled to consider a Residential Property Revitalization Zone (RPRZ) request for 429 Elm Street on Thursday, July 16—moving the proposal from the city’s July 2 public-hearing step toward a Finance, Organization and Personnel (FOP) committee recommendation and the next step before the full council.
In the July 16 agenda packet, the FOP committee’s recommendation addresses how the project would qualify under New Hampshire’s RSA 79-E:4-b framework, and—if Council approves—how the owners’ temporary real-property tax relief would be tied to completion of the substantial rehabilitation and enforceable covenant conditions.
What’s on the July 16 agenda for 429 Elm Street
Under Item D.4, the agenda packet reflects a Finance, Organization and Personnel committee vote of 5-0 recommending findings related to the 429 Elm Street application.
The packet also shows the committee discussed the tax-relief duration during the meeting and voted to amend the recommendation to set the tax-relief period at four years (rather than a shorter starting period that was first proposed in the discussion).
How long the tax relief would last (if Council approves)
As reflected in the final recommendation language in the July 16 agenda packet, the committee recommends that any assessed tax increment resulting from the substantial rehabilitation be granted for a four-year period beginning with the completion of the substantial rehabilitation, as determined by the City’s Community Development Department.
The recommendation is also conditioned on the property owner granting the city a recorded covenant at the time of substantial completion, with the covenant recorded at the Cheshire County Registry of Deeds.
The project: converting a barn into two units to increase the site from 3 to 5 homes
The July 2 referral packet describes the application as rehabilitation and adaptive reuse of an existing barn into two new dwelling units.
It states the property currently includes three residential buildings with three existing units. The conversion would add a one-bedroom unit and a two-bedroom unit from the barn, resulting in five total units on the property.
How RSA 79-E / RPRZ tax relief works here
Keene’s RPRZ process is designed to provide temporary real-property tax relief for qualifying renovation projects, in exchange for covenant requirements that are intended to protect the public benefits tied to the approval.
So even if Council votes to move the recommendation forward, any tax relief remains time-limited and tied to compliance with the covenant terms.
What covenant conditions are part of the RSA 79-E framework
The July 2 referral packet lays out standard covenant-related requirements that the city would seek as part of the tax-relief structure, including:
- A covenant ensuring the structure is maintained and used in a manner that furthers the public benefits for the period of the tax relief.
- Requirements for casualty insurance and flood insurance (if appropriate) for twice the term of the tax relief.
- A city lien against the property to help ensure proper restoration or demolition of damaged structures and property.
- A requirement that the property remains taxable.
- City inspection authority to ensure compliance, at the Community Development Director’s discretion.
The referral packet also states that if the covenant is terminated for any reason, the City would assess all current and arrears taxes, with interest, as though no tax relief had been granted.
One specific “lien” detail the committee is recommending for the covenant
While the covenant framework includes lien language, the July 16 agenda packet indicates the FOP committee is recommending that the City Council waive the inclusion of a lien against proceeds from casualty and flood insurance claims in the covenant.
What to watch next on July 16
The FOP committee packet sets the framework, but the full City Council vote is what determines whether the RSA 79-E/RPRZ tax relief is actually approved. If Council follows the committee recommendation, the tax relief would be time-limited and tied to the completion timeline and the recorded covenant. If Council modifies the terms or does not approve the recommendation, the owners would not proceed under the committee’s proposed RSA 79-E approval structure.
Sources
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