Mixed Use

The growth of mixed-use developments is a trend revitalizing the downtowns of large and small cities nationwide.  Mixed-use developments consist of older office, manufacturing, and warehouse buildings converted to condominiums and apartments.  This adaptive reuse of buildings is fueled by demand from growing demographic groups, primarily young singles, empty nesters, and double-income, no kids couples.  Mixed-use developments can be a single building with retail on the street level and upper floors converted to apartments, or it may be a vacant warehouse or plant converted to luxury lofts.

In 2005 the City of Utica commissioned Zimmerman/Volk Associates to perform a study of living space in Utica's central business district. The study examined the viability of converting under-utilized commercial buildings into market-rate housing "mixed" with retail/office buildings. The study results show that Utica has a very strong potential for market rate housing in its downtown area. The Zimmerman/Volk study identified a potential demand of 108 new downtown living units per year. 

How Can the City of Utica Help?

The City of Utica offers loans, grants, and  real property tax breaks for mixed-use developers.  These incentives include:

Loans

Grants

• HUD Brownfield Economic Development Initiative (HUD BEDI)

  Gant funds to CDBG entitlement communities for land write downs, remediation, collateralization of Section 108 loans, and financing to for-profit businesses (if funds are available in HUD's budget).

• HUD Economic Development Initiative (HUD EDI)

  Used in tandem with Section 108 loans, HUD EDI grants may be used for pre-development costs, as security for a Section 108 loan, or to reduce the interest rate of a Section 108 loan (if funds area available in HUD's budget).

• City of Utica Façade Grant
  Façade grants provide a dollar-for-dollar match  up to $5,000 for façade improvements in the CDBG target area ($2:$1 match up to $10,000 in Utica's Scenic and Historic District).

Tax Breaks

• 485-a Real Property Tax Law

• Allows 50% abatement of the value-added real-estate taxes for the commercial portion of mixed-use buildings, with a phase-in to full assessment over ten years.  This applies to City, School, and County taxes.444-a Real Property Tax Law

• Hstoric property that is altered or rehabilitated in accordance with local historic preservation laws is exempt from taxation to the extent of any increase in value attributable to the alteration or rehabilitation.  An exemption of 100% in years 1-5 is applied then stepped up to full assessment by year 10.P.I.L.O.T.

• Commercial tax abatement program available to non-housing portion of projects.  This program is available through the Utica Industrial Development Agency, and may be combined with 485-a real property tax law benefits.Federal Investment Tax Credit

• Owners of properties listed on the National Register of Historic Places may be eligible for a 20% federal income tax credit for substantial rehabilitation of historic properties.  Work must meet the Secretary of the Interior's Standards for Rehabilitation and be approved by the National Park Service.

For Further Information

• The Zimmerman/Volk study

Dept.Urban & Economic Development

Utica City Hall
1 Kennedy Plaza
Utica, NY 13502
315-792-0181
315-797-6607 fax

Mayor Robert Palmieri

1 Kennedy Plaza
Utica, NY 13502
(315) 792-0100
(315) 734-9250 Fax

Allows 100% abatement of the value-added real estate taxes for the residential portion of mixed-use buildings, with a phase-in to full assessment over twelve years.  This applies to City and School taxes.485-b Real Property Tax Law

• City of Utica Economic Reinvestment Program (ERP)
  Gap financing for commercial portions of projects which create jobs.
• Linked Deposit Loan Program
  Projects in the Utica Empire Zone which create jobs are eligible for a 3% interest rate reduction from participating commercial lenders.
• NYSERDA $mart Loan
  Interest rate reductions up to 4% on loans from participating lenders for energy efficiency projects and renewable energy technologies.  Multi-family and commercial facilities are eligible.
• Community Preservation Corporation (CPC)
  CPC is a private mortgage lender specializing in financing housing throughout New York State.  CPC is sponsored by 94 banks and insurance companies to provide construction financing and permanent financing.
• Section 108 Loan Guarantees
  HUD guarantees notes issued by the City of Utica for development activities.  Section 108 may be combined with HUD BEDI or HUD EDI.