Dr. Steve Kraus presented a detailed proposal at a previous Carroll City Council meeting that outlined the request for his holding company, DMBA Properties and Consulting, Inc., to receive 15 years of Tax Increment Financing (TIF) rebates to develop the lots at the corner of 5th and Clark Streets. The plan is for the construction of a new building to house Biokinemetrics, Inc. and to work towards the renovation of the building at that corner when the current tenant’s lease expires in seven years. The City of Carroll, with the assistance of City Attorney, Dave Bruner, has drafted a Letter of Intent in a good faith effort to work toward the creation of a developer agreement and to place the property into an urban renewal area to qualify for the TIF rebate. Council member Carolyn Siemann said that in her review of the Letter of Intent, she noticed the word subsidiary was used for the first time and asked Kraus for clarification of who that subsidiary would be.
Jerry Fleshner asked Kraus about how the TIF rebate is tied to ownership.
Kraus said this letter is just the initial step in the process.
The terms of each agreement can be negotiated after the council approves the Letter of Intent. City Clerk and Finance Director, Laura Schaefer, said the amount of the TIF rebate is a pure guess at this moment as it is based on the valuation of the improvements made to the property and the current TIF rate, which changes every year. She said, for example, if the property improvements are valued at $1 million, at the current TIF rate the rebate would be roughly $18,000 to $20,000 each year. The council accepted the Letter of Intent, a copy of which can be found below.
