Decorah City Council votes 4-3 in favor of housing tax abatement proposal

The Decorah City Council Monday night voted 4-3 in favor of a controversial tax abatement program designed to encourage housing construction within the city limits.

Under the plan, property owners would qualify for a tax abatement for five years under the following categories:

--Exemption of property taxes for single family residential construction of 100 percent up to the first $400,000 of actual value added for five years.

--Exemption of property taxes for multi-family commercial residential construction of 100 percent for up to $40,000 per dwelling unit of actual value added for five years.

--Exemption of property taxes for existing residential if the improvements made improve the actual value added to the property more than 10 percent.

City council member Gary Rustad urged his fellow council members to approve the plan, noting that houses are being built now outside of the city limits.  Council member Chuck Lore opposed the idea, saying "I'm not sure it solves the problem."

Lore, Bill Wagner and Paul Wanless voted against the plan, with Rustad, Tade Kerndt, Jody Niess and Randy Schissel voting in favor of it.

The proposal will come up for two more readings before the city council.  If it is approved at those two meetings, the plan will go into effect as soon as the ordinance is published.