In 2016, the City of Carroll and Biokinemetrics Holdings, LLC and DMBA Properties and Consulting, Inc. entered into a development agreement. Biokinemetrics was building a 17,000 square foot building between 4th and 5th Streets and agreed to create 10 new jobs in that building in exchange for a Tax Increment Financing (TIF) grant. The money paid out over 15 years was not to exceed $300,000, the equivalent of incremental property tax revenues generated over that period of time. At a recent meeting, City Clerk and Finance Director, Laura Schaefer, reported the city needed to review a possible change to the fourth annual appropriation. She says the building has been completed and is open for business, but the developer has reported and certified the creation of eight new jobs instead of the required 10. The agreement allows the city to reduce the grant percentage by 10 percent for each position under that agreement. In this case, that would represent a 20 percent reduction in the annual grant payment for 2021 (Fiscal Year 2022). Owner and developer, Dr. Steven Kraus, says he is asking for the full appropriation as he has a new employee under contract to start Dec. 1 and another will be added early in 2021.
Kraus also asked for consideration based on the level of compensation that accompanies these positions and for COVID-19 interruptions.
The Carroll City council debated their options and agreed to honor the hiring of the one employee who will officially start this week. A motion was then made by Jerry Fleshner to amend the annual appropriation to 90 percent of the full rate for one year. This will be revisited in 2021 and if all parameters are met, the payment will return to 100 percent. The motion passed on a vote of five in favor and one, Carolyn Siemann, against. Over the past three years, the annual payment has averaged just over $16,380.
