New Prague council schedules Nov. 4 public hearing on Yellow Tree tax‑abatement request

The New Prague City Council voted to schedule a public hearing on Nov. 4 to gather public comment and additional information on a tax‑abatement request from Yellow Tree Development for a proposed 150+‑unit apartment project.

Planning staff told the council the developer initially requested an abatement that could amount to 75% of taxable value for up to 15 years, but clarified the current request is for the city’s portion only. “Their thoughts are 75% up to, or 15 years up to 75% of the taxable value,” staff said. Staff also reported that Scott County and the local school district have indicated they are unlikely to participate in the abatement, meaning any relief would come from the city’s share of taxes.

Councilmembers and residents raised financial concerns. One councilmember said constituents have expressed discomfort with using tax dollars to abate a market‑rate project as property taxes continue to rise for homeowners. Another councilmember noted recruiting and housing availability challenges for city and regional employers but stopped short of endorsing or opposing the abatement.

Councilmember Bruce moved to schedule the hearing; the motion carried. The Nov. 4 hearing will present the abatement request in greater detail and allow public testimony before the council takes further action.

What’s next: staff said it will provide additional financial detail ahead of the hearing (including debt‑service coverage comparisons with and without the proposed abatement) so council members and the public can assess fiscal impacts prior to any vote.