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City Council raising an eyebrow about tax abatement requests

 

 

(Talk of the Town photos by Jennifer Zartman Romano) Columbia City Council members listen as John Toumey and Terry Knee of the Department of Local Finance discuss tax abatements, above. Below, from left, councilman Dan Weigold and Mayor Jim Fleck discuss an abatement concern.

 

By Jennifer Zartman Romano

First, it was county council asking questions. Now, Columbia City Common Council has started asking questions of their own regarding tax abatements and whether everyone is following through on promises made.

“Are they upholding their end of the bargain? Every year you’re going to have to analyze it,” said Department of Local Finance representative Terry Knee as he spoke to the council about tax abatements.

“If they say they’re going to hire 125 employees and then they hire 10, then we’re going to have a problem,” said councilwoman Rosie Coyle.

“If you’re questioning the number of people, you have the right to call them in,” Knee responded.

Knee and another representative of the Department of Local Finance said the issue of tax abatements and whether companies are actually following through with their promises to hire employees and make improvements in their properties in exchange for tax incentives has become an issue worth review in many  communities.

While the council members did not want to be difficult with local businesses, some of whom have legitimate reasons, such as the economy, to blame for not following through, they do want to begin taking a closer look at abatements.

“I don’t believe it should be confrontational, but we are accountable to the taxpayers,” Coyle said.

“On the proactive side, I think we should require them to come in here,” said councilman Walt Crowder.

Councilman Don Sexton was also in agreement, adding that he felt it would be a good idea to have a conversation with business leaders to see where they’re at and what factors are involved if or when they cannot meet goals set forth in tax abatement requests.

During Tuesday’s meeting, abatement forms were reviewed for Bones Theatre, Stafco, Oakview Tooling and Warner Electric.

While council members had several questions about the abatement requests, all were approved.

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