Politics & Government

Ames City Council Vote on Tax Abatement Criteria Could Open Door for Deery Car Dealership

Ames City Council approved a policy detailing tax abatement criteria for Southeast 16th Street.

A Deery Brothers car dealership could be coming to Ames after a vote during Tuesday night’s Ames City Council meeting.

Council members voted 4-2 to approve the Urban Revitalization Policy, according to the Ames Tribune. The policy defines tax abatement criteria for businesses looking to build between Southeast 16th Street and Dayton Avenue.

The approval concludes months of discussion that began when The Deery Brothers asked the city for a tax abatement to build upon the low-lying land. In exchange, the company offered to donate more than 10 acres of land and pursue flood mitigation projects. The request sparked a lengthy and divisive debate.

Councilmen Victoria Szopinksi and Matthew Goodman voted against the abatement criteria.

Szopinski said she opposed the decision because she didn’t believe the council should be encouraging or discouraging people to build in the Southeast 16th Street area. She said that other methods such as zoning overlays and a developer’s agreement could achieve the goals of the project without delving into tax abatement.

β€œI think if businesses build there, they should build at their own risk,” Szopinksi told Patch. β€œI am not opposed to people building … I support growth. But we’re a good market, there’s no reason why that business shouldn’t come and build there, but not at taxpayer expense.”

The policy outlines six requirements that businesses must meet in order to qualify for a tax abatement. Businesses must apply for the abatement individually.

Here are the requirements for businesses to be eligible for a tax abatement as listed in the :

  • Construct a frontage along Southeast 16th Street.
  • Meet a no-rise requirement, meaning it would not increase flooding.
  • The cost of bringing in fill to increase the elevation of the site at least three feet out of the floodway would be equal to or greater than the city’s portion of the tax abatement.
  • A public sidewalk must be built.
  • Owners of property abutting the river must widen, straighten or clear the river to mitigate flooding.
  • The types of business that can not qualify include wholesale trade, mini-storage warehouses, transportation, communication and utility uses, institutional uses, adult entertainment, detention facilities, agricultural or industrial equipment sales and agricultural and farm-related activities.

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