By JoEllen Black/Richmond News
A final piece of paperwork – a certificate of incorporation – allowed Richmond City Council to approve a tax abatement, known as Chapter 353, for ClearPath Senior Holdings, LLC. The company plans to construct a senior assisted living center next to Richmond United Christian Presbyterian Church on Spartan Drive. Groundbreaking is expected in mid-May.
The 14-year graduated scale of abatement is based on mostly three-year increments, starting 2016-18 with 100 percent abatement, then lowering to 80 percent in 2019-21 with 20 percent of Payment In Lieu of Taxes, much like tax payments. Abatements are then lowered to 75 percent in years 2022-24, 50 percent in 2025-27and 25 percent in years 2028-29. But personal property, such as furnishings, would be taxed immediately, according to Molly McGovern, who performed a tax analysis for the city. McGovern estimates around $9,000 would be collected the first year in personal property, a conservative figure, she said. As personal property depreciates, increases in property taxes would stabilize the decline, she said.
City Administrator Ron Brohammer said construction costs are estimated at $6.5 million. St. Louis-based ARCO Construction Co., a primary investor, will be the general contractor. ARCO typically bids out most of its of construction projects, according to Jim Eisenhart, a co-founding principal of ClearPath. Forty to 50 construction jobs are anticipated for the 10 to 11-month project with $1.5 million in payroll.