02-11-08 Community and Economic Development

Home Browse Search

Community and Economic Development Committee February 11, 2008 Page 5 Miscellaneous Business: Council Member Dieter noted that he had the one-page proposed "Position Statement on Tax Abatement" sent to the Council by email and was also provided in each of the Council Member's mail boxes. (copy attached). He noted that it was being presented for discussion, and is offered in light of Mayor Luecke's recent update on HB 1001. He noted that the proposed statement would not be a moratorium. In response to a question from Dr. Varner, Mr. Mathia indicated that there is one (1) personal and one (1) real property tax abatement in process related to the same project. Council President Rouse noted that the Council must be prudent in this area, and commended Council Member Dieter for monitoring current recipients of tax abatement. President Rouse stated that if HB 1001 is passed in its current version, that it will not be business as usual. Council Member Dieter stated that letters have gone out to those recipients who were considered in preliminary non-compliance by the City Administration. The response date is February 22"d The Council Attorney noted that Council Member Dieter sent notice to nine (9) companies who are currently receiving abatements. Mr. Mathia noted that we are coming into a building season, and perhaps discussion should also take place on the policy of pulling building permits. Council Member LaFountain voiced support of looking at that policy, but that discussion on the policy statement should take place. Mayor Luecke stated that he did not support ceasing taking tax abatement applications. He is concerned about the loss of revenue, but tax abatement is a phase in program of taxes which generates more revenue. He added that he has not proposed any city lay- offs, and that the Administration is carefully monitoring HB 1001 with TACT. Mayor Luecke noted for example that what if a developer came forward on the LaSalle Hotel or what if a developer proposed to create 300 jobs in the Studebaker Corridor during the 6- 8week period addressed in the proposed policy. He stated that he appreciates the Council's concern if HB 1001 is passed as is but does not believe that tax abatement should be eliminated. He hoped that there would be broader discussions.