Tuesday, August 27, 2013

How To Fix Hudson's Property Tax Problem

One of the most predictable conversations with new residents of Hudson goes something like this. "I just received my first tax bill after buying my house in Hudson. Can it be right? I can't believe how high the taxes are here! How much do you pay?

Many people who buy a home here are shocked at our tax rate and people who have lived here for years are just as outraged. Often people thinking about buying property or companies wanting to start a business here have to abandon those plans after they investigate our tax rates. They are simply too high and they are unsustainable.

The City of Hudson's annual budget is nearly $12 Million. The Hudson City School District annual budget is in excess of $40 Million. While the city and school district can achieve some cost savings, the bulk of their budgets are fixed costs for services that the community needs and deserves.

Hudson's position as the County Seat and the substantial number of not-for-profits and service providers in the city, only adds to the problem since those properties are not on the taxable property rolls. 

Ultimately the problem with Hudson's property taxes has less to do with what we spend, and more to do with there not being enough taxpayers shouldering the burden. 
That needs to change.

Building the Tax Base by Growing the Community.

At its peak, Hudson's population was twice what it is today. While there are a number of factors for that, the city's infrastructure is able to sustain a lot more people than it currently does. Encouraging redevelopment of properties in Hudson's blighted area and vacant lots would increase Hudson's population. This is exactly what is needed.

The way to achieve this is to encourage new smart development in Hudson.  To facilitate some new growth on the North Side quickly, I will propose and champion rezoning derelict structures and vacant lots of Columbia Street from 3rd Street to 5th Street. The new zoning would allow for more dense development than is currently permitted. 

The new zoning would permit some buildings, particularly those on corner lots, to be built nearly to the property line. This allowance for more buildable space would make the properties more attractive and more profitable for developers which would lead to much faster development that is currently occurring.

The more people we have living in Hudson, the more people paying taxes and contributing to our local economy. This would result in a greater number of people shouldering our tax burden and lower taxes for Hudson's beleaguered property owners.

Encouraging New Smart Development to Solve Other Problems

Developers who are afforded the right to build more densely would be required to help the city and its residents by giving back.


Parking issues continue to hold back Hudson's development.
Any new buildings which are afforded the right to build without the currently required setbacks, would be required (whenever possible) to include underground parking and ground floor commercial space. Those buildings which provide underground parking would also be allowed one extra story of buildable space for a total of five stories. The elimination of required setbacks along with an extra story of residential space would be very attractive to developers.

Hudson is also struggling with a lack of affordable housing.
In those buildings granted extra buildable space, a percentage of new apartments would be reserved for low and moderate income tenants. In many cities an 80/20 percent mix seems to work quite well. I would support a similar set aside. These lower-rent units would be mixed into all areas of the building so as to not stigmatize low income tenants and afford them the same amenities as any other tenant.

Looking Ahead to Waterfront Development While Increasing the Tax Base Now

Everyone in Hudson knows that our waterfront is our greatest asset. But unfortunately the current city government has failed to achieve a better outcome for the huge amount of land occupied by Holcim. The demolition and remediation which will be required in order to develop the former Kaz warehouse or Foster's Refrigeration factory, will not happen quickly. While my administration will immediately begin working for better solutions for our waterfront, it will take a while even under the best circumstances to get to the point where the city can develop there. But Hudson needs relief now.

Rezoning and developing the Columbia Street corridor would give the city's taxpayers the property tax relief they so desperately need. While at the same time it would allow for a measured and forward thinking plan for the waterfront and the other contaminated industrial parcels to be developed, all with the proper and required citizen input.

We Can't Wait Two More Years

The next two years will be critical in deciding whether Hudson continues being an affordable and livable city. It will not be if we fail to address our exorbitant property taxes. Alleviating the burden on Hudson's taxpayers will be the first order of business in my administration.

In the two years that Mayor Hallenbeck has been in office the Mayor has not put a single proposal forward to fix the underlying problems of Hudson's property tax burden. In that same time he has not proposed anything to address the parking problems in the city or the need for decent affordable housing. Not one! 

My proposal addresses a range of issues which have been ignored under Mayor Hallenbeck. It will go a long way toward sustainable fiscal health for the city, lessen the burden on current taxpayers, contribute to solving the acute lack of parking and affordable housing, all while lifting up the most blighted area of the city.

Victor Mendolia



Do you have any ideas about how we could do things better for Hudson? 
Let us know your thoughts.  
Email Victor at betterforhudson@gmail.com



1 comment:

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