The Tipton Common Council voted to approve Resolution 2025-10, declaring an economic revitalization area (ERA) and authorizing a three-year, graduated property tax abatement for DMT Capital LLC on a downtown property.
The resolution sets a three-year abatement of property taxes on qualifying improvements with a schedule of 100% in year one, 66% in year two and 33% in year three; the ERA designation is recorded as 10 years. Council members discussed timing conditions: work must begin no later than Labor Day and be completed by Labor Day 2026.
Council President Crane said the abatement is intended to create a timeline and an expectation that the project will be completed promptly so the city can realize future tax revenue and housing units. City staff said this abatement form is authorized by state statute and has been used previously for industrial and other developments.
Council members raised questions about precedent, fiscal impact and how the abatement would be monitored. Keegan, a city staff member, explained that the three-year payment schedule is negotiable by council but that tax abatement programs are governed by state statute. Keegan said the abatement would be reviewed in subsequent years and that staff would recommend rescinding the abatement if the project failed to meet the conditions.
The council approved the resolution on a motion and second; members voting in favor signified by saying “aye.” The motion passed.
The measure applies specifically to the DMT Capital project described in the resolution and does not create a general new policy beyond the parameters recorded in the final resolution. The resolution also conditions the abatement on documented completion to qualify for any tax forgiveness.
After the vote, members and staff noted the development would add residential units to downtown Tipton if completed and that any new residents could produce additional local income-tax revenue once occupied.
City staff said the final resolution contains the abatement schedule and related details for public review.