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Meeting includes a heated discussion about whether tax abatements should be given

Posted: Tue, Jul 28, 2015 7:27 AM

Monday evening's meeting at Decorah City Hall included a sometimes-heated discussion of whether tax abatements should be used.

Rural Decorah resident Tom Hansen noted that the hotel development was a for-profit venture and asked why the city was considering giving tax breaks.  "We have gotten away from free market capitalism," Hansen complained.

But city officials said they have been using the tax abatements for 20 years to spur development in places where it might not happen otherwise.  City council member Jody Neiss used a tax abatement before she was on the city council to help her build a building for her business on Water Street and said the project would not have looked like it does help.  Decorah businessman Keith Bruening said he received a tax abatement to build the building that houses the Social Security offices on Washington Street--which included the demolition of rundown buildings.

The Decorah City Council will hold a public hearing on the tax abatement plan--probably at their first meeting in September.