The council approved amended Resolution #7-2011 to a seven-year abatement.
Brazil Family Medicine, Dr. David Breitweiser's family practice, requested to designate an area within Clay County as an economic revitalization area for the purpose of a ten-year real property tax abatement to construct a new medical facility.
This practice currently has 12 full-time jobs. Completion of the project will maintain the existing jobs while creating five new permanent full-time jobs with a total payroll of $196,000.
The cost of the project is approximately $900,000 to redevelop and rehabilitate the designated area for the purpose of medical care.
"With medical facilities, you will typically have higher salaries, which will bring in more CAGIT (County Adjusted Gross Income Tax)," Council Member Larry Moss said. "You have $196,000 in salaries -- that's $44,000 in CAGIT. That's is a very big motivating factor."
This project would bring in more CAGIT, which will offset the loss of property tax being paid.
"An abatement doesn't mean they aren't paying any property tax," President Mike McCullough said. "In the first year, they don't pay property taxes. Within the next years the tax phases in, until by the seventh year when they are paying the full property tax."
The council doesn't give abatements unless the project is creating new jobs, offsetting the loss of funds through property tax.
"We do shorter abatements for higher appreciated things and longer abatements for lower appreciated things," Moss said. "Seven years is kind of in the middle."
The project will be off of Murphy Avenue on the west side, south of the old railroad tracks.
"We're in the final stages of planning," Bretweiser said. He will show the plans for the project at the Oct. 3 meeting.
Meanwhile, a representative from the prosecutor's office requested additional appropriation, outside of the budget. The office needs copies of transcripts for trials and hearings.
Also, the office has expenses from drug testing. In any plea agreement reached, the office tries to recoup the costs through the defendant. However, the defendant has their entire probation time to repay those costs. The office doesn't always receive the money in time.
"When we started we were getting about $10,000 a month in the deferral fund, now we are getting about $2,000," the representative said. "We are through the deferral fund and have used up the equity fund."
The council approved this request.
The council also discussed issues including
* The council adopted Resolution #6-2011, which allows the auditor's office to discontinue manual transfer books while creating and maintaining electronic transfer books. The Clay County Commissioners had approved this resolution in their meeting Tuesday morning,
* The council approved transfers of funds for the prosecutor's office, and
* The council allowed the Highway Department to put money into the correct fund after it had been transferred out earlier in the year.