HomeMy WebLinkAboutA002 - Memo to City Attorney with questions about proposed ordinance, March 14, 1985 l
a��d
ill limit
TO: John Klaus, City Attorney 0
FROM: Steven L. Schainker, City Manager l
DATE: March 14, 1985
SUBJECT: Property Tax Exemption Ordinance
The Armes Economic Development Commission is requesting that the City Council
consider passing an Industrial Property Tax Exemption Ordinance which is allowed
under Chapter 427(b) of the Iowa State Code. I believe the City Council con-
sidered this ordinance a few years ago and decided not to support its passage.
If I recall correctly, the only objection that the City Council had with this
proposed ordinance was the fact that it was a blanket exemption and that the
Council could not deal with the exemptions on a case-by-case basis.
The City Council has received a copy of a report which is attached for your
review. I have received two questions from the City Council which I would like
answered before I place this matter on a. Council agenda.
The first question involves the retroactive application of the ordinance. You
will recall that when we passed the urban revitalization legislation, many of
the projects which had already been completed were able to qualify for the tax
abatements, even though they were conceived and constructed prior to the passage
of this legislation. The City Council would like to know how far back will
projects be eligible for this tax exemption once the ordinance is passed.
The second question deals with Council's ability to insure that this tax abate-
ment incentive is offered only in those areas in which the Council has agreed to
zone as industrial. I believe the major question is whether Council, under this
Chapter, has retained the sole authority to determine whether property is zoned
industrial. I believe the Council wants to be assured that this exemption will
be offered on property which they believe to be appropriate for industrial
purposes. I don't believe that this passage of this ordinance would jeopardize
their control. However, I am sure they would appreciate your response to this
issue.
I believe I have adequately clarified the issues. However, if you would like to
discuss this matter further, please do not hesitate to contact me.
/lw
c: Mayor and City Council