Decorah City council seems likely to approve tax abatement for $11-$14 million hotel complex

Representatives from Rebound Enterprises met with City of Decorah officials for 75 minutes on Monday evening to discuss the company's proposed hotel development on the former Bluffs Inn property.

Rebound is requesting a package of financial assistance totaling $2 million, with $1 million of that in tax abatements, $500,000 in assistance from the county, state or federal governments and $500,000 to $700,000 in contributions from the city.

Rebound Enterprises Chief Executive Officer Brett Reese said Monday his group is hoping for a private/public combination in developing the property.  He called the Bluffs Inn property "a prime, ripe redevelopment project."

City council members looked favorably upon the request for tax abatements, noting that other developments in the past have received similar treatment.  City council member Randy Schissel called the tax abatement "a non-issue" and city council member Tade Kerndt said the city would come out ahead in 4.5 years--assuming the property stayed undeveloped.

No action was taken on Rebound Enterprises' proposal Monday evening--the meeting was informational--but the tax abatements seemed to have unanimous support.

Not so Rebound's request for financial participation by the City of Decorah.  "We just don't have the money upfront," said city council member Jody Niess.  Other city council members agreed--and shifted the discuss to other ways the city could support the project.  Much of that discussion centered around water mains, stormwater mains, streetlights, sidewalks, street and other utilities that the city could improve as part of the project.

Next Monday the Decorah City Council will set a date for a future public hearing on the tax abatement proposal.