City's Economic Development Committee will discuss possible property tax abatements for proposed apartment complex

Posted: Tue, Oct 16, 2018 4:22 PM

Following the Decorah City Council's 4 to 3 vote against a proposal to give developers property tax abatements for four proposed apartment complexes, the issue will now be taken up by the city's Economic Development Committee.

City council members Ross Hadley, Dan Bellrichard, Andy Carlson and Randy Schissel voted against the proposal, saying they were concerned about the amount of tax abatement.

The developers of four proposed multi-family apartment complexes in the Decorah Business Park are asking the City of Decorah for a $520,000 tax break for each of the four buildings. Each building would have a property valuation of at least $3 million, with a 90 percent tax abatement the first four years of each apartment complex, an 80 percent tax abatement the next three years and a 70 percent tax abatement the final three years.

Under the City of Decorah's existing property tax abatement program, the developers would receive a property tax abatement of $140,000 in reduced taxes over five years for each of the buildings, however Echo Development representatives say their proposal for a ten-year property tax abatement is more representative of what other communities they have worked with provide.