The proposed waterfront condos will qualify for a ten-year property tax exemption under current city law.

The exemption includes all property taxes (city, county, schools, port, etc.).

We estimate, conservatively, that the tax exemption will be worth $3,000 per condo per year, or $30,000 per condo over ten years. (This is for the average condominium; more expensive condos will save more, less expensive condos will save less.)

The targeted number of condos is 100 per city block. Therefore the total exemption will be $3 million per city block.

If all 9 blocks are converted to condos, the total exemption will be $27 million.

The result: city and county residents subsidize condo owners.

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Brochures regarding this program are available at the Smith Building, 837 7^th Ave.

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Estimated purchase price per condo: $210,000

Minus land cost (not eligible for exemption) - $10,000

Value eligible for exemption $200,000

Times property tax rate (1.5%) x .015

Exemption per condo each year $3,000

Times 10 years x 10

Total exemption per condo over ten years $30,000

Times 100 condos per block x 100

Total exemption per block $3,000,000

Times nine blocks in the proposed area x 9

Total exemption in the entire area $27,000,000

May 15, 2002