Two businesses will receive property tax breaks as part of Iola’s neighborhood revitalization plan after those business owners appealed to the Iola City Council for inclusion.
American Self Storage, built on the east edge of town in 2007, had originally filed for inclusion into the revitalization program — thus making the owners eligible for property tax breaks for the next 10 years — but was rejected because the owners were notified the application had not been filed in time.
That’s because the application apparently was lost in the changeover in Iola’s code enforcement office from under the direction of Mike Cooper to Jeff Bauer.
Owner Benny Buerskens told council members previously that his inquiries about the missing application prompted him to contact Cooper personally. After retiring as code enforcement officer in 2007, Cooper moved to Texas.
Cooper confirmed the application had been filed, although it had apparently been lost, Bauer said.
“We never did find the folder with it,” Bauer said.
IN THE second matter, the owners of the Iola Pharmacy drive-through on East Street told council members that they originally anticipated being eligible for tax breaks through an industrial revenue bond agreement used to fund construction of the adjoining Family Physicians clinic.
However, owner Jeff Dieker told council members he had been notified recently that the pharmacy did not qualify for the tax breaks because it was considered a retail business.
Had Dieker and the pharmacy’s other owners known they would not have qualified throught IRB process, they would have filed for inclusion in Iola’s tax rebate plan.
Council members were sympathetic to the appeals. They also recognized concerns from other taxing entities about exceptions and inconsistent enforcement of the revitalization plan.
“Both cases have merit, one of which was (the city’s) fault,” Council member Kendall Callahan said. “I think we need to do what we can to help local businesses.”
Under the revitalization plan, the property owners are reimbursed 100 percent of the difference in property taxes paid if a property is improved for five years. The rebate then shrinks by 20 percent over the next five years until the properties are back on the tax rolls at full value.
The tax refunds must also be approved by Allen County commissioners as well as the USD 257 Board of Education and Allen County Community College trustees.
AN ARTICLE in Wednesday’s Register detailing discussions about looming increases in water rates and subsequent cuts in electric rates for Iolans failed to include information about the council’s decision to refinance its Kansas Department of Health and Environment loan.
Council members unanimously approved the refinancing, which will pare about $596,000 in principle and interest from the city’s $10 million loan over the next 14 years, or about $42,000 a year.
The lower payments will mitigate the rate hike, City Administrator Carl Slaugh said.
