Monday, October 29, 2007

Zoning Issues and Tax Status

The biggest hurdle we face in developing the Ivy land is the zoning restrictions in Albemarle County Rural Areas:

Albemarle County Code Ch18 Zoning10 Rural Areas.pdf

Section 10.2.1 details the uses that we're allowed by right, such as: one and two family dwellings, farm stands, agriculture, temporary construction, tourist lodging, farmworker housing (up to ten occupants), etc.

Section 10.2.2 details the uses for which we would need a special use permit, among them: community center, civic clubs, private schools, farm sales, etc.

See the definitions in section five at:
Albemarle County Zoning Regs.

At issue here is that 'community organizing and popular education retreat center' is, of course, not on either of these lists. So where do we fit in? Or, more helpfully, how do we avoid the need to get a special use permit, which would be a time-consuming, energy-draining and arduous public ordeal?

One possible loophole is that a project which receives public funding is exempt from special permit. So, for example, if we got a grant from the USDA, or made some sort of agreement with UVA, then we would be exempt.

Another would be to define our project within the criteria for use by right: say a "tourist and farmworker solidarity farm," or something.

Secondary in importance to the zoning issue is the land's tax status:

Right now all 158 acres are under "land use" tax status, which means that it is taxed only $190/year based on the fact that it is used for agriculture. Were some portion of the land to be built about, that portion would fall out of land use status and be taxed at the market rate for developable land. Furthermore, back taxes for the past five years would have to be paid on that portion of the land. This isn't too big a deal, because if we put a building on say 1 acre (that's a pretty big building, even with some non-agricultural landscaping), then only 1 acre falls out of land use. We're talking (I don't have the numbers in front of me), probably something like $5,000 in taxes. However, the property taxes on the building likely will be more than that each year...

Unless, of course, it's owned by a non-profit, it which case the taxes are like zero. Otherwise, it's something like 0.74%, which isn't bad, but we would simply need to have a revenue stream dedicated to pay those taxes every year. And the more structures we build, the more we'll have to pay.

Just to clarify again: the zoning and tax status are two completely separate issues. We cannot change the zoning—that is set by the county. We can change our tax status, based on what we do with the land, and we can decide how much we pay, based on our ownership structure.

Eric

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