The plan includes a five year sliding scale tax exemption for residential and commercial new construction starting at 80-percent, 70-percent, 60-percent, 50-percent and 40-percent. Harris said residential rehabilitation would include a 100-percent tax exemption on the actual value added by the improvements. The improvements however, must increase the actual value of the property by a minimum of 10-percent. That also applies to all qualified real estate assessed as commercial property.

Eligible property improvements would include rehabilitation and additions to existing residential and commercial structures located within the Urban Renewal Area, new construction on vacant land, or on land with existing structures. Properties classified as “Commercial” effective January 1st, 2014, would not be included, but would instead be re-classified multi-residential, effective January 1st, 2015.

Individuals and business owners interested in participating in the program, if approved by the Council after the public hearing, will be required to file an application at City Hall. If the application for tax abatement is approved, it will be forwarded to the County Assessor’s Office for inspection once the project is complete, and subsequent assessment for valuation.

In other business, the Council approved: the sale of property at 405 W. 4th Street to Todd Knudsen, for $400; a request from the 1st United Methodist Church to close Cedar Street between 2nd and 3rd Streets, on August 10th from 3-to 7-pm (for the purpose of a community block party); and, they unanimously passed a Resolution approving a policy for the use of Public Funds for Observances. Seven years ago, the City established a policy setting the maximum amount to be paid for flowers, gifts, cards and plaques given in observance of City employees’ major events such as retirements, hospitalization and death.

City Administrator Doug Harris said he and Mayor Jones drafted an addition to the policy that would include recognition of citizens who regularly dedicate countless hours helping the community with events and perform other services for the City.