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Harmony EDA recommends tiered new-home rebate schedule for 2023 to speed tax payback
Summary
The EDA recommended that city council adopt a revised new-home rebate schedule (min $1,500 for $40,000 new taxable value; max $20,000 for $500,000) based on a five-year payback assumption and authorized a public announcement if approved. The board retained existing program guidelines and reserved the right to cancel or limit the program if demand is high.
The Harmony Economic Development Authority voted Oct. 6 to recommend that the city council adopt a revised new-home rebate schedule beginning Jan. 2023 that would set a minimum rebate of $1,500 for $40,000 in new taxable value and a maximum rebate of $20,000 for $500,000 in new taxable value.
Chris Giesen presented the final draft to the board and said the schedule was designed around an average five-year payback from city taxes after factoring in the market value exclusion. He noted that past rebates were repaid faster than originally anticipated — often in four to five years rather than five to six.
The board asked that the remainder of the program guidelines and goals remain unchanged, and agreed that the program could be cancelled or limited without notice if too many rebates were awarded. The board also discussed making a major public announcement if council approved the change.
On a motion by Kerry Kingsley, seconded by Greg Schieber, the EDA recommended the updated schedule to the city council; the motion carried unanimously (tally not specified). The recommendation directs staff to forward the schedule to council and prepare for implementation in January 2023 if the council concurs.
Next steps: the schedule goes to the city council for formal adoption; if approved, EDA staff will prepare outreach and an announcement plan and track rebate awards against program capacity.
