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431 Prater Way Sparks, NV United States
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Sparks City Council Meeting 3/14/2016 2:00:00 PM
Monday, March 14, 2016 2:00 PMCouncil Chambers, Legislative Building, 745 Fourth Street, Sparks, NV
Consent Items: 8.3
Total Costs: $213,000.00|
Fund: Rec & Parks District 2 Account: 603250 Program: Culture & Rec Program Revenue in P&R Dist ll Fund (1407-35) Amount: $213,000.00 Budget Status: Over Budget (See Budget Correction Plan) |
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Budget Correction Plan: $213,000 Refund will be paid from Residential Construction Tax collected in Park District 2 from cash received from construction of single family homes in the Miramonte Planned Development |
A Business Impact Statement is not required because this is not a rule.
On June 12, 2006 the Sparks City Council approved a Residential Construction Tax Credit Agreement (A-3380) with Centex Homes for the construction of neighborhood parks within the Miramonte Development. The terms of the agreement include the construction and dedication of two neighborhood parks within the Miramonte Development and provided Centex Homes with Residential Construction Tax Credits. Centex Homes constructed and dedicated a park and was awarded Residential Construction Tax Credits in the amount of $590,000. In 2008, Centex Homes sold the Miramonte Development to Corona Miramonte, LLC (Corona) and assigned the Residential Tax Credit agreement to Corona. During the course of development, Corona forgot to use a portion of the awarded Residential Construction Tax Credits and paid the tax with cash. Staff has performed an audit of all residential building permits within the Miramonte Development and has verified that Corona paid for a portion of the residential construction tax with cash in lieu of using awarded credits. Staff recommends approval.
Background:
On June 12, 2006 the Sparks City Council approved a Residential Construction Tax Credit Agreement (A-3380) with Centex Homes for the construction of neighborhood parks within the Miramonte Development. The terms of the agreement include the construction and dedication of two neighborhood parks within the Miramonte Development and provided Centex Homes with Residential Construction Tax Credits. Centex Homes constructed and dedicated a park and was awarded Residential Construction Tax Credits in the amount of $590,000. In 2008, Centex Homes sold the Miramonte Development to Corona Miramonte, LLC (Corona) and assigned the Residential Tax Credit agreement to Corona.
In September of 2015, Corona contacted the City and informed staff that they had failed to use Residential Construction Tax credits for a portion of the building permits and had paid the tax with cash. On October 1, 2015, legal council for Corona sent the City of Sparks City Engineer a formal request (attached) for a refund of cash paid for Residential Construction Tax.
Analysis:
Staff has performed an audit of single family home mapping and building permits within the Miramonte Development. From this audit staff has determined the following:
- A total of 590 lots have been created through final map approval within the Miramonte Development.
- Centex Homes Constructed 236 homes and used $238,000 in RCT credits
- Corona Miramonte, LLC has constructed 215 homes and has used $2,000 in RCT credits and has paid $213,000 in cash.
Alternatives:
1. The City Council could approve the refund as outlined by staff.
2. The City Council could reject the refund and provide direction to the City Manager.
Recommended Motion:
"I move to approve the refund of Residential Construction Tax to Corona Miramonte, LLC in the amount of $213,000."
Attached Files:
miramonte merchant.pdf Miramonte RCT Audit - 1-31-16.pdf
