Le Mars council approves four workforce housing tax-credit applications and discusses tax-exemption policy

The Le Mars City Council on May 14 approved four resolutions allowing local developers to apply to the Iowa Economic Development Authority (IEDA) for workforce housing tax credits and discussed the city’s urban revitalization tax exemption and a pending housing study.

The council voted to approve applications for: JG1 LLC (resolution 25-21); Luxury Real Estate LLC (resolution 25-22) for a 12-unit apartment project near the airport; Deluxe Re Real Estate LLC (resolution 25-22, as read on the record); and Access Capital LLC (resolution 25-23) for 40 townhouse units on an 8.44-acre parcel along Holton Drive. City administration recommended that Le Mars meet the local match for each application using the Urban Revitalization Plan tax exemption, which provides an exemption on the allowable portion of property taxes for the increased assessed value of multifamily residences for the first seven years.

Why it matters: the tax exemption reduces property taxes for the projects while they are in the seven-year abatement period and is intended to spur construction of multifamily rental housing. Council members used the votes to press for additional information and to flag a separate policy discussion on…