HomeMy WebLinkAboutA001 - Email dated January 31, 2020 from City Clerk to Finance c4c
ORD 4050_009781.pdf
Diane R Voss to: Steve Schainker, Duane R Pitcher 01/31/2020 05:44 PM
Bcc: Diane R Voss
I reminded you via an email sent March 7, 2019, that the Industrial Tax Exemption adopted by Ordinance
4050 (copy of which is attached) is set to expire on JULY 1, 2020. As you are aware, the Ordinance would
need tree readings by the Council, and subsequent to its adoption, would need to be published prior to its
expiration.
I was asked to send another reminder in a year; however, since the issue was raised at today's Budget
Overview, I am sending the reminder today.
Diane Voss, City Clerk/Records Manager
P. O. Box 811
Ames, Iowa 50010
(515) 239-5105
- ORD 4050_009781.pdf
ORD 4050_009781.pdf- Industrial Tax Exemption
Diane R Voss to: Steve Schainker, Duane R Pitcher 03/07/2019 08:28 PM
/ Bcc: Diane R Voss
Reminder! Tr
Industrial Tax`Exemption adopted by Ordinance 4050 (copy of which is attached below) is
set to expire July 1, 2020. Fys you are aware, the Ordinance would need three readings by the Council,
and subseque to its adopti would need to be published prior to its expiration.
Diane Voss, City Clerk/Records Manager
P. O. Box 811
Ames, Iowa 50010
(515) 239-5105
D -ORD 4050_009781.pdf
ITEM # 27
DATE: 10-26-10
COUNCIL ACTION FORM
SUBJECT: ORDINANCE EXTENDING THE INDUSTRIAL TAX EXEMPTION
AVAILABILITY TO YEAR 2020
BACKGROUND:
Iowa Code Chapter 427B authorizes municipalities to provide for five-year declining
scale property tax abatement as an incentive for new construction of property for
manufacturing, research, and warehousing and distribution. The City of Ames first
enacted an ordinance providing for industrial tax exemption in 1985 for an initial period
of five years. The ordinance was subsequently amended to make the exemption
available to 2010. The attached ordinance would amend the municipal code to further
extend the availability of the exemption in Ames to 2020 unless sooner repealed by
Council.
Nearly every City in Iowa has adopted an ordinance to provide abatement under
Chapter 427B as a method to attract new construction that will also improve
employment opportunities. Cities have been allowed to use the abated taxes as local
match to various other economic development incentive programs managed by the
state. The City of Ames would at a competitive disadvantage to other Iowa
communities if the ordinance offering property tax abatement were not extended beyond
2010.
ALTERNATIVES:
1. Approve the ordinance extending the availability of the industrial tax exemption for
an additional ten years to the year 2020.
2. Approve the ordinance in an amended form to extend the industrial tax exemption
for a different number of years.
3. Take no action and allow the industrial tax exemption to expire.
MANAGER'S RECOMMENDED ACTION:
Availability of the Industrial Tax Exemption provides an important economic incentive to
attract new industries to Ames. Abated taxes can be used to match other state
economic development incentive programs managed by the state. In order to remain
competitive with other communities, this form of property tax abatement should be
continued. It is therefore the recommendation of the City Manager that the Council
approve Alternative #1 and enact the ordinance extending the availability of the
industrial tax exemption to the year 2020.
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