Val and Carolyn McLean want the tax break they were promised. Homes for Iola, a not-for-profit group, admits it didn’t get its paperwork in on time.
And Allen County commissioners don’t want to be portrayed as “the bad guys again.”
What has happened:
Homes for Iola was formed to build at-cost housing to help attract people to Iola. Last year the group purchased a lot at 216 S. Colborn — recently shorn of a dilapidated house — hired a contractor and built an upscale home.
The McLeans purchased the house to use as a rental.
The purchase was made with the understanding that the McLeans would receive advantages of Iola’s Revitalization Program. Under the program, essentially all property taxes are rebated for five years and then are reinstated at 20 percent a year for the next five years.
After making the purchase, Carolyn McLean learned there was nothing in courthouse records confirming the tax break. She also learned that paperwork wasn’t filed at City Hall within the allotted time.
Since then, a period of about a month, USD 257 and Allen County Community College have agreed to honor tax provisions of the revitalization plan. County commissioners said Tuesday they didn’t think it was their place to do so, rather that the McLeans should take their case to city commissioners and seek, according to County Counselor Alan Weber, either an extension of the filing deadline or ask for hardship consideration.
What’s at stake?
Taxes on the bare lot were $80 a year. With the new home, valued at about $100,000, property taxes may be about $1,600 a year. The exact figure won’t be known until the property is appraised officially.
Assuming $1,600 is accurate, the McLeans would save $8,000 over the next five years, less a 5 percent administrative fee the county charges to collect taxes and then make a rebate.
The McLeans and Homes of Iola principles Ken Gilpin and David Toland asked commissioners to support their efforts.
Commissioners made no commitment.
“I want to wait and see what the city does,” Rob Francis said.
“It’s obvious something needs to be fixed in the program,” Dick Works said, noting that missteps occurred previously with inclusion of properties that were outside the specified revitalization zone.
“That gave us a ‘bad guy’ image,” said Gary McIntosh, who was sympathetic but noted, “We need to make sure everything is done right.”
Weber observed that revitalization was “clearly Iola’s plan, and (the McLeans) need an extension or something from the city that meets the plan’s provisions before we can support a rebate or oppose it. It’s doable, but it’s up to the city.”
City commissioners met Tuesday afternoon. They did not discuss the McLeans’ predicament.
TAX REBATES have previously eluded the McLeans.
Carolyn McLean told commissioners that twice before she and her husband remodeled homes for commercial purposes. Each time they were told the work would fall within the revitalization plan and both times they ended up empty-handed at tax time.
“We were told this house (216 S. Colborn) also was in the program,” she said.
