City council approves road projects, franchise fees and tax abatement

The Decorah City Council meeting Monday night was a quick one, as council members needed just 30 minutes to dispose of several items:

The city council voted 6-1 to approve levying franchise fees on gas and electric utility bills starting next year.  The fees will replace expiring local option sales tax charges on the utility bills.  The franchise fee will be set at one percent of the bill, but could go as high as five percent later--which is why council member Chuck Lore voted against the measure.

The council approved a 2018 fiscal year road project schedule which will include $400,000 worth of work on Short Street and Industrial Lane.  In this case, local option sales tax receipts will be used to pay the costs.

By a unanimous vote, the city council approved a ten-year tax abatement for Tade Kerndt, the developer of the former Bob's Standard building.  The tax abatement will not apply to the existing property valuation, but will gradually phase in property taxes over 10 years on the increased value of the property on College Drive because of the improvements Kerndt has made to the building.