Tax abatement for residential construction and improvements could be expanded from the old core of Carroll to the full city under a plan City Council members are considering.
The City Council on Monday night is expected to set a Sept. 13 public hearing on what is called the urban revitalization plan. The 2019 measure allows residential property owners to seek five years of tax abatement on up to $75,000 in new construction or improvements to a single unit of property — meaning $75,000 on a house and $300,000 on a four-plex apartment building. Any work must add at least 10 percent to the assessed value of property to be eligible.
The plan now applies to property from roughly 18th Street to the Middle Raccoon River, and Grant Road to U.S. Highway 71.
City officials are reviewing a strategy to include all residential property in the city limits.
“It’s to incentivize people to make improvements to their homes, to incentivize construction,” said City Manager Mike Pogge-Weaver.
If approved after the public hearing, the citywide abatement likely would go into effect for any construction started on Oct. 25 or later.