At the August 27, Carroll City Council meeting, a group of investors brought forth a proposal that is drawing some questions and concerns. Adam Schweers, Chad Kanne and Matt Wendl approached the city about developing an urban revitalization district that would allow them to receive a 100 percent tax abatement for 10 years on the improvements they were making to the former Morison Apartments, to be known as the Lincoln Highway Suites. At the most recent meeting, it was noted that this level of abatement is not currently being done in any other Carroll County community and is a rarity in Iowa. City Manager, Mike Pogge-Weaver, also told council members that county supervisors had voiced their concerns.
Pogge-Weaver opened discussion among council members about determining whether the district utilizes a blighted or non-blighted designation, the duration of both the abatement terms for property owners and the duration the city will allow for abatements, a dollar amount cap on the improvements and the property classifications that would be considered. The first decision was made quickly with the agreement that a lot could be accomplished outside of a blighted classification, a designation difficult to hit. They also discussed a shorter term on the abatement period to minimize the impact on the county, the schools and other taxing authorities. And with a proposal of capping the abatement amount to $75,000, Pogge-Weaver also wanted to point out that not all home improvements increase a property’s value.
The value determinations are the responsibility of the Carroll County Assessor. Councilman, LaVern Dirkx, asked about how the abatement would work in the case of a natural disaster, such as a tornado. The response was that, again, only improvements or additions that increased the taxable value would be eligible, and only up to $75,000 of those improvements would be abated. Jerry Fleshner said this is all about housing and in working with the existing stock, as identified in the recent study. He believes commercial properties should be left out of the mix. Pogge-Weaver asked the council to ensure that whatever they do for residential, they mirror with the multi-residential properties as well. Staff will bring back proposals for five year abatements at 100 percent per year up to $75,000 in increased value with multi-residential up to $75,000 per unit. More details about state standards for commercial abatements will be brought back to council with this information at a later date. Comparisons from other communities and a copy of the email from the supervisors can be found below.
Email content:
The Carroll County Board of Supervisors asked that I notify the Carroll City Council that they are not in support of the proposed urban revitalization plan. They are opposed to the size of the area and the effects on future growth of valuation.
Please forward this to the Council members.
Thanks,
