Commission takes look at tax breaks

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News

June 9, 2010 - 12:00 AM

Iola has put into motion plans for an appeals process for business and residential applicants seeking property improvement tax breaks that had been denied.
The plans were an-nounced at Tuesday’s city commission meeting after hearing from Ken Gilpin, representing Homes For Iola.
The not-for-profit group built on a vacant lot at 216 S. Colborn St., then sold the home to Iolans Val and Carolyn McLean, who are using it as an investment property.
When the home was built, Homes For Iola failed to apply for the city’s revitalization program, which essentially rebates property taxes for five years. Taxes then are reinstated at 20 percent increments for the next five years.
Not having the tax breaks would cost the McLeans roughly $8,000 in property taxes during the 10-year period, according to one estimate.
The McLeans appealed to the city, Allen County, USD 257 and Allen County Community College — each of which receives property tax dollars in Iola. The school district, college and city all agreed to honor the tax provisions of the revitalization plan.
County commissioners initially rejected the request, then later suggested the McLeans take their cause to the city to request either an extension of the filing deadline or hardship consideration.
City commissioners, in turn, noted that if the exception is granted, at least two other property owners in the city would also qualify because their applications were also late.
That led to talks of amending the plan to put an appeals process in place.
City Administrator Judy Brigham suggested that any appeals be based on set criteria to keep the process fair.
City Attorney Chuck Apt said developing such language could be a lengthy process because it would require approval by the other taxing entities and the Kansas Attorney General’s office before being enacted.
“We’re talking at least 60 days, and that’s if we do everything right,” Apt said.

COMMISSIONERS approved, 2-0, a demolition order for a trailer park along the 200 and 300 blocks of South Vermont Street.
The trailer park has been abandoned. Commissioners previously approved an emergency order to have the trailers shuttered to prevent children from entering.
Chad Oehlert, assistant vice president of Citizens State Bank of Paola, told commissioners that the bank is in the process of acquiring the property — one of the owners has died; the other has declared bankruptcy. The bank plans to clear the trailers so the land can be sold, he said.
Commissioners noted the demolition process will be at least 150 days, which should give the bank sufficient time to clear the land.
Commissioners Craig Abbott and Bill Shirley voted for the demolition order. Mayor Bill Maness was absent.
Commissioners also approved six-month or annual evaluations for four employees and subsequent pay raises ranging from 1.6 to 3.2 percent.

A PAIR of change orders totaling $637.75 for renovations to Iola Public Library were approved, $425 to remove a cabinet that crews were unaware had been secured to a wall, and $212.75 to remove the facing along the wall near the cabinet.
Commissioners previously tabled the change orders because the request came from Code Enforcement Officer Jeff Bauer and not a library representative. Roger Carswell, the library’s executive director, presented the request this time.
With a tougher statewide smoking ban about to go into effect, the city must set a new policy regarding smoking on city property, Brigham said.
She noted that smoking already is banned in all city facilities open to the public, such as City Hall. However, all facilities, even break rooms and vehicles, must soon be smoke-free.

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