98-088

Response April 26, 1999

 

 

REQUEST LETTER

 

December 14, 1998

 

Re: Safe Haven

 

Dear Mr. Chapman:

 

The purpose of this letter is to request an Advisory Opinion Statement concerning availability of Historic Tax Credits that may be obtained for the adaptive re-use rehabilitation the existing BUILDING LOCATION, Utah. The following information is provided to assist you providing this statement:

 

DESCRIPTION

 

OWNER:

COMPANY is a private, non-profit corporation DESCRIPTION. They purchased the project site from the INDIVIDUAL.

 

PROGRAM:

The project program consisted of an adaptive re-use remodel of a DESCRIPTION historic warehouse building DISCRIPTION.

 

CONSTRUCTION:

Construction started DATE and was completed DATE.

 

HISTORIC TAX CREDIT:

The Historic Preservation Certification Application, Part 1-Evaluation of Significance was submitted to Mr. Charles. Shepherd, the Utah Division of State History, Office of Historic Preservation in DATE. A favorable Preliminary Determination for meeting National Register Criteria for listing in the National Register of Historic Places, DATE, was received from the National Park Service.

 

The Historic Preservation Certification Application, Part 2-Description of Rehabilitation was submitted to the State Historic Preservation Office in DATE.

 

The Historic Certification Application, Part 3-Request for Certification of Completed Work is currently being prepared. An informal walk-thru of the project was conducted with Charles Shepherd and Barbara Murphy of the State Historic Preservation Office on DATE. They were very pleased with rehabilitation results.

 

CONSTRUCTION COSTS:

DESCRIPTION

 

PROJECT FUNDING:

See enclosed summary.

 

Please contact me to discuss this matter in greater detail.

 

Sincerely,

INDIVIDUAL

 

RESPONSE LETTER

 

April 26, 1999

 

COMPANY

ADRESS

 

RE: Advisory Opinion - Utah’s Historic Preservation Tax Credit BUILDING

 

Dear NAME,

 

We have received ATTORNEYS request for an advisory opinion concerning the availability of Utah’s historic preservation tax credit for a project owned by your corporation, specifically, the rehabilitation BUILDING. ATTORNEY indicates that the building, upon its rehabilitation, will be owned and used by your corporation, COMPANY , DESCRIPTION.

 

A tax credit is allowed for qualified rehabilitation expenditures incurred in connection with a residential certified historic building under Utah Code Ann. §59-7-609. “Residential” is defined by Subsection (2)(c) to mean “a building used for residential use, either owner occupied or income producing.” Utah Admin. Rule R865-6F-26(A)(3) states that “”[r]esidential” as used in Section 59-7-109.5 applies only to the use of the building after the project is completed.” (In 1995, Section 59-7-109.5 was repealed and replaced by Section 59-2-609.)

 

Upon rehabilitating the building, COMPANY plans to use the building to DESCRIPTION. No portion of the building is intended to become a person’s permanent residence. The building, like a hospital or other temporary care facility, is considered to be commercial in nature and not a “residential” building for purposes of Utah’s historic preservation tax credit. Accordingly, no historic preservation tax credit is available for Utah tax purposes.

 

 

 

 

 

 

Please contact us if you have any other questions.

 

 

For the Commission,

 

 

R. Bruce Johnson

Commissioner

 

 

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