Pictured: Adams Schweers outlines tax abatement request at Carroll City Council’s Feb. 13 meeting.
Carroll city officials signaled their support for a larger tax abatement plan for a proposed apartment complex renovation near downtown. The 12-unit building at 502 N. Court St. was purchased last year by Court Street LLC with the intent to restore the nearly 100-year-old structure to its original 1929 appearance. Adams Schweers, one of Court Street LLC’s investors, approached the council last August requesting a 10-year, 100 percent tax abatement on the increased value of the property when the renovations are complete. The city already has a five-year, $75,000 abatement schedule in place, and Interim City Manager Jeff Cayler says there would be steps to follow if the council wants to change that.
Alternatively, Cayler says they could adopt a new abatement schedule for a specific area of the community, but they would new to designate a separate urban revitalization district inside the existing urban renewal district that runs along the Highway 30 corridor.
According to Schweers, Court Street LLC is anticipating an approximately $1.8 million capital outlay on the building that the Carroll County Assessor’s Office currently values at under $250,000. He says the complete abatement would provide the developers some breathing room as they work through the lengthy project and compared it to a similar project they have in Jefferson.
Ward Four Councilwoman Carolyn Siemann notes this renovation checks multiple boxes by adding to the city’s residential housing options and expanding the tax base. Ward Three Councilman Kyle Bauer says approval is just postponing tax revenue from a property that is barely generating any as it is.
The city would need to commit a few thousand dollars in attorney fees to carve out a new district and prepare a developer agreement with Court Street LLC. The council did not vote on the request at their Feb. 13 meeting, but they did direct city staff to start work on the process. The new tax abatement schedule and redrawn urban renewal district will appear on future meetings’ agendas for approval.
