Decorah City Council votes to rework tax abatement plan

A plan for the City of Decorah to offer tax abatements to home builders and remodelers in an attempt to stimulate the local housing market has been temporarily tabled to give Decorah City Council members time to rework the program.

The action came after a public hearing Monday night attended by around 75 people.  Skeptics in the crowd said they did not believe statements by city officials that the tax abatement program would not lead to higher taxes.  "I can't see how this is NOT going to raise taxes," said Del Fossum of Decorah, while Cal Anderson of Decorah pointed out that new development during 2013 had added almost $4.5 million in assessed value in the City of Decorah "and we still have a 10 to 11 percent (property) tax increase."  Anderson also said he feared the abatement program would depress the sale prices of existing homes.

Others speaking at the public hearing worried about the program's impact on historic housing.  Any Weldon told city council members the principle of "let the market work" doesn't always lead to quality housing, while Kate Narveson argued in favor of adding language urging the protection of historic homes.

Following the public hearing, city council members discussed possible modifications of the tax abatement program.  Council member Gary Rustad stated he did not want to encourage the tear downs of historic houses, while council member Paul Wanless wondered why people who build a new $500,000 house deserve tax abatements.  That led city council member Randy Schissel to suggest taking time to fine tune the proposal based on the public's comments.  City council members voted 7-0 in favor of Schissel's suggestion.