What incentives are being offered to the possible developer of the former Quillin's building?

The package of incentives being offered to Ridge Development on behalf of Hy Vee totals $749,000.

There are two parts to the financial aid package being discussed by City of Decorah officials--a 15-year tax abatement totaling $424,000 and a contribution of $325,000 from Decorah Jobs/Winneshiek County Development.

The former Quillin's building in the Centrum Plaza has an assessed valuation of $800,400.  That means the property is currently being assessed $23,084 a year in property taxes.

Ridge Development on behalf of Hy Vee would make $3 million in improvements to the existing building, which would increase the assessed valuation of the building by another $800,000.  However, those improvements would not increase the property tax bill for the building for the next 15 years.  That's a tax rebate of $424,000 when projected out over that 15 year period.

Supporters of the tax rebate say the building would not generate additional property tax receipts if it stayed empty.  Opponents of the tax rebate say that other rebates have been on a sliding scale, not a 100 percent rebate on the higher valuation; and that other rebates have been for fewer years.

Decorah City Council members have discussed the $424,000 tax abatement for the developer, but have not yet taken a formal vote.

It's not just the City of Decorah which is offering to help the developer, however.  Decorah Jobs and Winneshiek County Development are offering a cash payment of $325,000.  Representatives of the organizations say the project would create 20 full-time and 50 part-time jobs with an estimated total payroll of $1.5 million; would bring in $50,000 a year in additional sales tax receipts; and would lead to other retail development in the Centrum Plaza area.