The Carroll City Council is holding off on approving a tax abatement request and letter of support for Workforce Housing Tax Credits from the new owners of the Fairview Village Apartments due to concerns over accountability and project scheduling for proposed improvements at the dilapidated housing complex. MW Capital Group purchased all but one of the buildings earlier this year for $3 million from Carlson Property Holdings and Management. City Manager Aaron Kooiker says the group is seeking a 10-year, 100-percent tax abatement.
MW Capital has indicated to city leaders that they plan to invest $800,000 into the buildings to make them more visually appealing and habitable. Ward 3 Councilman Kyle Bauer questions what guarantees the city has from the firm that they will follow through on their promises.
In recent years, law enforcement has visited the low-income housing complex south of Fairview Elementary on 18th Street often. At-Large Councilman LaVern Dirkx says calls for service at the complex have been down significantly since ownership changed.
At-Large Councilwoman JJ Shreck notes the reason calls are down is because there is only a fraction of tenants left in the buildings compared to before. There have also been at least two reports of out-of-regulation grass that was only mowed after the city delivered nuisance notifications. Ward 2 Councilman Jason Atherton says the length of the proposed abatement is a concern, as it would leave the city stuck with a potential problem property for longer than the community prefers.
Atherton adds the community is tired of the status quo at Fairview, and he doesn’t believe the abatement does enough to encourage change. Kooiker says MW Capital is already motivated to move fast.
Kooiker adds a 10-year term provides more reason to get work done quickly, as they will reap the benefits of the tax reduction for longer. Ward 4 Councilwoman Carolyn Siemann shared Atherton’s concerns, saying MW Capital has not presented any formal plans to city officials.
Representatives from MW Capital were not in attendance at Monday’s meeting to answer the council’s questions. As a result, the council voted to table the abatement request and letter of support approval until they present a more detailed action plan. Video of this discussion from the June 10 council meeting is included below.
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