R2026-69 Resolution Authorizing Execution of a Property Tax Abatement Agreement with NOTIS Development LLC at 136 S Dipper Lane and Waiving of Building Permit Fees

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ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT No. 2026-27 April 6, 2026 TO: Mayor Julie Moore Wolfe and City Council Members FROM: Melissa Hon, City Manager Lacie Elzy, Economic & Community Development Director Miranda Lambert, Asst. Economic & Community Development Director SUBJECT: Resolution Authorizing Execution of a Property Tax Abatement Agreement with NOTIS Development LLC at 136 S Dipper Lane and Waiving of Building Permit Fees. RECOMMENDATION: Approve a resolution authorizing the City Manager to execute any necessary agreements and documents required to implement this resolution. BACKGROUND: The property located at 136 S. Dipper Lane was previously operated as a nursing home facility that has since closed and remained vacant, resulting in an underutilized site within the community. A multi-family residential market analysis conducted by Danter& Associates in July 2023 identified an overall vacancy rate of 2.8% in the Decatur area, indicating the market is constrained by a lack of supply rather than demand. The study also found that approximately 680 additional apartment units could be supported, including a mix of upscale and moderate garden,townhouses, and ranch-style units. NOTIS Development LLC proposes investing over$1.2 million to purchase and redevelop the property into a fourteen (14)unit garden-style apartment complex,with units ranging from studio to two-bedroom. The development will include amenities such as laundry facilities, outdoor gathering spaces, a gazebo, and a designated barbecue area. The proposed redevelopment would reactivate a long-vacant property, expand housing options, and support neighborhood revitalization. Based on estimated post-redevelopment values,the completed development is expected to generate significantly increased property tax revenue to the City compared to its current vacant condition. See attachment of the proposed floor plan. BUDGET IMPACT: Approval of this resolution will result in a temporary reduction in City revenues. The City will not receive its portion of property tax revenue from the subject property for the seven (7)year abatement period. In tax year 2025, the property generated approximately $4,135.27 in property tax revenue to the City of Decatur; however, following redevelopment,this amount is expected to increase, and the higher post-development revenue will be foregone annually during the abatement term.