City Council Approves Major Tax Breaks for New Warehouses

November 04, 2024 | Cedar Falls, Black Hawk County, Iowa


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City Council Approves Major Tax Breaks for New Warehouses
The Cedar Falls City Council held a meeting to discuss several important items, including the vacation of a utility easement, agreements for private development, and property tax exemptions for new industrial facilities.

The first item addressed was a request from James and Nicolette Wilson to vacate a 5-foot utility easement at 1907 Valley High Drive. The easement, which runs through the center of their property, has no utilities, and both the city and Cedar Falls Utilities confirmed that it is no longer needed. The Planning and Zoning Commission unanimously supported the vacation. The council approved the motion without any opposition.

Next, the council considered an agreement with Odell Collision Center LLC for a new facility in the West Viking Road Industrial Park. The owners, Ben and Rachel Odell, are looking to build a larger space to accommodate their growing business. The new facility is expected to have a valuation of over $1.9 million and will begin construction in the spring, with completion anticipated by the end of next year. The council approved the agreement, allowing the transfer of city-owned land for this development.

The council also discussed a partial property tax exemption for Amazon.com Services LLC for a new warehouse facility at 6417 Innovation Drive. This follows a previous agreement with Ryan Companies, which transferred the property to Amazon. The council moved to adopt the tax abatement ordinance, which will be filed with the County Assessor's Office.

Another tax exemption was proposed for Cedar Falls Partners LLC for a new distribution center for PepsiCo Frito Lay at 67100 Innovation Drive. This project has recently been completed, and the council took steps to formally adopt the tax abatement ordinance as part of the development agreement approved last year.

During the public comment period, a resident raised concerns about the fairness of tax abatements for new businesses while existing commercial properties face higher taxes. The resident questioned the rationale behind providing incentives to new developments when established businesses are not receiving similar support.

Overall, the meeting highlighted the city's efforts to support new developments while also raising questions about the impact of tax policies on existing businesses.

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