What is the reason for proposing rental units rather than condominiums? How will this impact property taxes paid to the City?
SamTrans owns the land and will enter into a long-term ground lease with the developer, Legacy Residential Partners, Inc., who will own the improvements. While it is legally possible to sell condominiums under a land lease, Legacys and SamTrans’ analysis show that the market is not receptive to a condominium project on leased land. Furthermore, it is SamTrans’ intention to develop a high quality product with transit-oriented development (TOD) features. SamTrans believes that creating a long-term rental partnership with a developer, as opposed to selling the land, is the best mechanism to achieve this goal. In terms of property taxes, it should first be noted that the property is within a redevelopment area meaning the Citys redevelopment agency will receive 49% of the property taxes generated by the project, therefore the other 51% is utilized for pass-through payments and tax sharing obligations with the County, School District and taxing entities. (The property tax rate is about 1% o
Related Questions
- Redevelopment Area Taxes: Does the redirection of property taxes in redevelopment areas have a negative impact on other City or County agencies?
- What is the reason for proposing rental units rather than condominiums? How will this impact property taxes paid to the City?
- HOW ARE THE PROPERTY TAXES PAID ON THE UNITS?
