047-25 (RealEstateTaxExemption(ClineManorVALLC)) ORDINANCE
Action:
BOARD OF SUPERVISORS: February 26"', 2025 Adopted
AN ORDINANCE TO PARTIALLY EXEMPT REAL ESTATE TAXATION FOR THE
PROPOSED DEVELOPMENT OF PROPERTY KNOWN AS THE ESTATE OF PEGGY
CARSON RITTER HENCEFORTH KNOWN AS CLINE MANOR VA LLC, LOCATED IN
THE COUNTY OF FREDERICK,VIRGINIA, BY LOCAL CLASSIFICATION OR
DESIGNATION FROM FULL ASSESSMENT OF TAXES:
WHEREAS, ESTATE OF PEGGY CARSONN RITTER, (hereinafter referred to as CLINE
MANOR VA LLC) has applied to the Frederick County Board of Supervisors (hereinafter referred
to as "the Board) for an ordinance providing it with partial tax-exempt status from the County of
Frederick on real property taxes relating to the proposed development of CLINE MANOR VA LLC
apartment complex in Frederick County,Virginia located on the Frederick County Tax Map Number
63-A-37 located at 3266 Valley Pike; and
WHEREAS, the Board desires to support and encourage the development of said property by
enacting an ordinance to provide CLINE MANOR VA .LLC with a partial tax exemption from the
County of Frederick's real property taxes; and
WHEREAS,the Virginia Code Section 58.1-3219.4, authorizes the County to enact such exemptions
within the limitations therein prescribed and as may be prescribed by this Board;
NOW,THEREFORE,BE IT ORDAINED pursuant to Section 58.1-3219.4 of the Code of Virginia
that;
1. The real property of the Estate of Peggy Carson Ritter to be partially exempted hereby is
located within the County of Frederick, Virginia, being tax map number 63-A-37 located at
3266 Valley Pike.
2. The Frederick County Board hereby finds that:
a. The subject real property, along with improvements currently located thereon, is
assessed at a total of Five Hundred Two Thousand Dollars and Zero Cents ($502,000)
and the cost of the intended improvements is expected to be Nine Million Nine
Hundred Thousand Dollars and Zero Cents ($9,900,000.00).
b. The real property taxes that were paid by the subject property's owner for tax year
2024 were Two Thousand Five Hundred Sixty Dollars and Twenty Cents ($2,560.20).
The increase in value caused by the proposed inlprovennents could result in an increase
in the amount of total tax on this real property to the amount of Fifty One Thousand
Three Hundred Forty Nine Dollars and Fifty Five Cents ($51,349.55).
3. The Board finds that CLINE MANOR VA LLC is an organization that proposes to develop
housing structures for historically underprivileged residents in the County of Frederick, and
No. 047-25
nearby areas, The proposed development CLINE MANOR VA LLC will serve the County of
Frederick, and its residents, as an affordable housing options. As such, said organization is
eligible for a part exemption from the assessment of real property taxes as a result of said
development under Virginia Code 58.1-3220, for a period of three(3) years, in an amount not
to exceed Two-Thousand Dollars and Zero Cents ($2,000) annually.
4. The Board hereby exempts CLINE MANOR VA LLC from that portion of their real property
taxes accruing as a result of an increase in property value by reason of the proposed
improvements or Fifty Percent(50%)of the cost of such improvements,whichever is greater,
but not to exceed Two Thousand Dollars ($2,000) annually, for a period`of three(3)tax years
once all improvements are completed,
a. The cost of improvements shall be presurned as shown on the building pen-nit
application. The proposed improvements are those described in the attached exhibit A
which is hereby incorporated into this ordinance.
b. The exemption hereby granted in contingent upon the following:
i. CLINE MANOR VA LLC providing Dousing predoininately for persons with
low to moderate income as defined by Virginia Housing.
This ordinance shall be in effect on the date of adoption.
Passed this 26"' day of February by the following recorded vote:
Josh Ludwig, Chairman Aye John Jewell Aye
Heather H. Lockridge Aye Robert W. Wells Aye
Blaine P. Dunn Aye Robert Liero Aye
Judith McCann-Slaughter Aye
A COPY ATTEST
Michael L. Bollhoefer
Frederick County A nistrator
No. 047-25
r
COUNTY of FREDERICK
Department of Planning and Development
�sern, 540/665-5651
- Fax: 5401665-6395
MEMORANDUM
TO: Frederick County Board of Supervisors
FROM: Wyatt Pearson,AICP,Director of Planning and Development
RE: Cline Manor Revitalization Area and Tax Abatement
DATE: February 20, 2025
Introduction
Surber Development and Consulting LLC (the Applicant) has requested the Board pass a
Revitalization Area Resolution and Tax Abatement Ordinance to support their Low-Income
Housing Tax Credit (LIHTC) application for a multi-family housing complex at 3266 Vally Pike
(PIN 63-A-37). For both requests, if approved, the applicant would include in their LIHTC grant
application. The LIHTC program is a competitive process, and having the support of the local
governing body via these two requests helps the Applicant's project score better and more likely
to receive a grant award.
Current Zoning and Comprehensive Plan
The property in question is already zoned.Residential Performance (RP) and could be developed
by right with similarly non-subsidized housing. The Comprehensive Plan designates this property
as being within the Kernstown Area Plan,and more specifically a part of the Kemstown Creekside
Neighborhood Village:
Kernstown Creekside Neighborhood Village serves as a focal point to the Kernstown Area and as
a gateway feature for this important County location. In addition, the Kernstown Creekside Area
serves as a gateway into the City of Winchester, and on a broader scale, a gatewavfeature far this
portion of Frederick County as citizens and visitors approach this portion the County from the
south. This neighborhood village should promote a strong positive coninaunity image. Residential
land uses would be permitted only as an accessory component of the neighborhood village
commercial land asses. This area should have a strong street presence with particular attention
being paid to the form of the buildings adjacent to Route 11. It is the intent of this plan to reafflnn
Kernstown as a distinct connnunity, blending the old with the new, and building on the successful
developments that have occurred in this area of the County.
Revitalization Area Request
107 North Kent Street, Suite 202 e Winchester, Virginia 22601-5000
Cline Manor Revitalization Area and Tax Abatement
February 201h, 2025
Page 2
The Revitalization Area Request is based upon Virginia Code Section § 36-55.30:2. Housing
revitalization areas; economically mixed projects. More specifically,that section allows localities
to designate specific areas of the community that could benefit from reinvestment targeted at
providing affordable housing. In this instance this location likely meets two of the State Code
criteria, which are copied below for reference:
(b) the industrial, commercial or other economic development ofsuch area will benefit the city or
county but such area lacks the housing needed to induce manufacturing, industrial, commercial,
governmental, educational, entertainment, community development, healthcare or nonprofit
enterprises or undertakings to locate or remain in such area; and
(ii)private enterprise and investment are not reasonably expected, without assistance, to produce
the construction or rehabilitation of decent, safe and sanitary housing and supporting facilities
that will meet the needs of low and moderate income persons and families in such area and will
induce other persons and families to live within such area and thereby create a desirable economic
mix of residents in such area.
Tax Abatement Ordinance
The Tax Abatement Ordinance request is based upon Virginia Code Section § 58.1-3219.4. Partial
exemption for structures in redevelopment or conservation areas or rehabilitation districts. The
Applicant has requested a nominal amount of real estate abatement which is described below.
Please understand that these are assumptions developed by the applicant, which have not been
validated with the Frederick County Treasurer or Commissioner of Revenue.
Current Assessed Value = $502,000
2024 Taxes Paid= $2,560.20
Anticipated Cost of Improvement= $9,900,000
Estimated Assessed Value After Completion= $10,045,000
Estimated Annual Tax Payment After Completion = $51,349
Requested Abatement Amount After Completion Annually (3 years) = $2,000
Cline Manor Development Proposal
The Applicant intends to construct two multi-family structures that may total 80 units.Their typical
product uses high quality materials as well as elements of universal design and accessibility (see
example image). This is an allowed use under the existing zoning for the property. As proposed,
the project would have a blend of affordable units based upon a percentage of the Area Median
Income (AMI). The applicant provided a general intention for how they would blend the units for
the 50 unit apartment building for reference below.
In regards to the set asides and rents, if 50 units, there would be 28 three-bedroom and 22 two-
bedroom units. Of the total, 5 units would be set aside for individuals/families earning less than
30% of the Area Median Income, 21 for individuals/families earning less than 50% of the Area
Median Income, 6 less than 60%and 18 less than 80%.
Cline Manor Revitalization Area and Tax Abatement
February 201h, 2025
Page 3
The maximum rents are restricted and controlled by the federal government. The maximum rents
must take into account a Utility Allowance. We will hire a 3rdparty to conduct a utility analysis
and provide us with these numbers. For now, I am estimating allowances of$119 for a two-
bedroom unit and $130 for a three-bedroom unit. These are estimates based on other recent
developments. Using these allowances, with current 2024 data (new data will not be released
until April 2025), the maximum rents are as follows:
2 bedroom:
30%AMI- $595
50%AMI- $1,072
60%AMI- $1,310
80%AMI- $1,787
3 bedroom:
30%AMI- $696
50%AMI- $1,246
60%AMI- $1,522
80%AMI- $2,073
Additionally, for the Board's consideration as to how the Federal government considers these
percentages and in turn qualifies renters,here is a chart showing the max salaries to qualify in each
category for Frederick County based upon the household size.
30% 50% 60% 80%
AMI AMI AMI AMI
1 Person $22,260 $37,100 $44,520 $59,360
2 Person $25,440 $42,400 $50,880 $67,840
3 Person $28,590 $47,650 $57,180 $76,240
4 Person $31,770 $52,950 $63,540 $84,720
Lastly, in passing a Board member requested any data the Planning Department had on current
rental units in Frederick County. The information bulleted below was background information
from a study effort we chose not proceed further with. It was collected by a third party in the past
year or so via internet research and limited direct outreach.
Rent Units
available
$1,500 to $1,749 6
$1,750 to $1,999 8
$2,000 to $2,249 19
$2,250 to $2,499 20
$2,500+ 28
Cline Manor Revitalization Area and Tax Abatement
February 201h, 2025
Page 4
Conclusion
Neither the Revitalization Area Resolution or Tax Abatement Ordinance require Public Hearings
in accordance with the State Code. Since this property is entitled to construct as zoned it is not a
typical land use action that requires a public hearing. The items will be presented to the Board for
consideration on February 26th, and the Applicant will be available to answer questions. The
applicant's grant deadline for LIHTC is March 13th
WGP
Attachments
1. Request Letter Surber Development and Consulting LLC
2. Developer's Example Image
3. Revitalization Area Resolution
4. Tax Abatement Ordinance with Exhibit A
Surber Development and Consulting LLC
January 30, 2025
Frederick County Planning Department
Attn: Wyatt Pearson
Planning Director
107 N. Kent Street
Winchester, VA 22601
RE: Cline Manor 2025 LIIITC Application
Dear Mr. Pearson,
Surber Development and Consulting is preparing an application for submission to Virginia
Housing for a reservation of LIHTCs(Low Income Housing Tax Credits) for the new
construction of a multifamily apartment community to be called"Cline Manor". As a part of the
application process,please accept this formal request for the Frederick. County Board of
Supervisors to pass a revitalization resolution and tax abatement ordinance for this parcel, with
address 3266 Valley Pike consisting of approximately 4.2 acres as shown on the attached
preliminary conceptual plan.
The 2025 application will be for 40-50 units in phase I. A second phase will likely be developed
in the future for 30-40 units, with total units in both phases not to exceed 80. We are asking for
the revitalization area resolution and tax abatement ordinance to include the entire 4.2 acre tract.
All units will be targeted to individuals and families earning between 30% and 80%of the Area
Median Income.
Should you have any questions,please reach out to me either by email or on my cell phone.
Sincerely,
.Jennifer E. H. Surber
Managing Member
276-698-8760
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