The Austin City Planning Commission postponed a request Tuesday from several Greek organizations to rezone their properties in an attempt to reduce their property tax appraisals.

Under the 2004 University Neighborhood Overlay, many properties within the area were granted zoning benefits including increased heights to facilitate development growth, said city planner Jorge Rousselin.

But some property owners want out of the sweeping zone changes.

Tim Aynesworth, coordinator for a student housing preservation group, said nonprofit student housing organizations do not benefit from the overlay's zoning guidelines. In response to the zoning changes, Aynesworth said they want their properties to be excluded from the overlay and returned to the classification as a multi-family base zoning district.

"We need to find a way to return to our original zoning district," he said. "By doing so, we will actually reduce the development potential of the property and hope it will lower its valuation."

Lowering the value of the property in turn lowers the amount of taxes the owner has to pay on it.

Art Cory, chief appraiser for the Travis County Central Appraisal District, said property taxes are determined by the potential value of the property and what can be done with the property. He said the overlay's zoning guidelines have given developers more opportunities for the property land use.

"If the rezoning changes on the properties are approved by City Council, then we have to consider it as a factor in determining property valuations," Cory said.

The Sigma Chi fraternity house, which resides within the overlay's zoning guidelines, rose in value from $775,000 to $2,416,392 between 2004 and 2006, Aynesworth said.

In 2006, the valuation of land outside of the overlay was $30 per square foot, while land within the overlay was $50.60, he said.

If property taxes continue to increase, Aynesworth said members of the nonprofit Greek organizations will have to pay for it directly.

Continued...

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