City council members reach tentative agreement on tax abatement proposal

A majority of the members of the Decorah City Council are now agreed that the City of Decorah should offer a tax abatement program to help spur housing construction in the city.

The city's Economic Development and Community Betterment Committee met for two hours Monday evening at Decorah City Hall and reached an agreement on a proposal to submit to a public hearing October 6th. 

The proposal would cap tax abatements on residential construction at $400,000 in assessed valuation.  It would give a tax abatement on $40,000 of value on each unit constructed in a multi-family development--with no overall cap.  Finally, it would give tax abatements on qualified improvements made to existing homes that increased property valuations by at least 10 percent.

The proposal appears to have the support of five of the seven city council members.  Only Charles Lore and Bill Wagner remain opposed in varying degrees.  Wagner told committee members the proposal "will cost us," while Lore asked his fellow city council members for "more soul-searching."

Committee chair Randy Schissel said he had talked with officials from other Iowa cities who have tried the tax abatements and have had good results.  City council member Paul Wanless, while expressing some reservations, agreed "multi-family housing is a real need."

Comment from members of the public also varied.  Decorah resident Cal Anderson said the city council "has no business speculating with taxpayers' money."  But realtor Mike Harman stated "We have a shortage of housing" and Luther employee Keith Christensen said the college has people who can't move into Decorah because of the scarcity of affordable housing.

More public comments will be taken at the 5:45 p.m. Decorah City Council meeting next Monday, October 6th.