News
City Council helps small businesses apply for tax abatement
1/20/2010
In a move to encourage new business and existing business expansion, City Council Tuesday night removed the minimum investment requirement from commercial businesses for three years of tax abatement on real estate improvements in the Economic Development Target Area (EDTA).
Council voted unanimously to amend the city's tax abatement regulations, action endorsed by the Economic Development Advisory Committee (EDAC) and Mayor Suzanne Handshoe. The revised regulations now allow three years of tax abatement with up to $500,000 in real estate improvements; five years of abatement with $500,000-$1 million in real estate improvements; and seven years minimum tax abatement with more than $1 million in real estate improvements.
The revision removes the minimum investment by commercial businesses for at least three years of abatement that was $200,000 to $500,000 in real estate improvements.
EDAC members discussed the proposed change last month where Handshoe argued the current economic climate and competition among communities for new business investment makes it vital Kendallville offer as much incentive as it can for new businesses to come here and existing businesses to expand. EDAC members agreed removing the minimum investment requirement would help small businesses.
Only those commercial businesses that locate or are located in the city's EDTA are eligible for abatement. The EDTA extends along the U.S. 6 corridor from S.R. 3 east to Allen Chapel Road, and includes the downtown business district and the northwest corner of the S.R. 3 and Drake Road intersection.
The EDAC reviews tax abatement requests within the EDTA for consideration by council.
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