Mar. 17--IOWA CITY -- The city has taken a step toward creating a special district that could eventually allow a proposed "green" business park to receive tax breaks.
The city's Economic Development Committee on Tuesday unanimously recommended approval of a plan that would allow for the creation of a tax increment financing district on 243 acres northwest of the Interstate 80-Highway 1 interchange.
The recommendation now goes to the Planning and Zoning Commission and then the City Council, which has the ultimate say. The Economic Development Committee is made up of council members Regenia Bailey, Susan Mims and Mayor Matt Hayek.
If the district is approved, developers who build there would be able to apply for tax increment financing, in which some property tax revenue would go to the developer for a set period of time to help fund the project.
The tax district was requested by the backers of the proposed 170-acre Moss Green Urban Village, an office and research park that would include environmentally friendly features. The plan comes from the Moss family, which owns the land, and ECO-4 Partners, a developer out of the Des Moines area.
Bailey said a new business park that includes a green design would be a good fit for Iowa City.
A tax increment financing agreement would still need to be worked out, but the developers have said they will seek up to $10 million, said Wendy Ford, the city's economic development coordinator.
That's the estimated costs for infrastructure work needed for the park, including the extension of Oakdale Boulevard. The city would not reimburse those costs if the project doesn't happen, although the tax district, if approved, would still exist for other businesses.
The City Council has viewed tax increment financing as a good economic development tool that also helps increase the value of a certain property and therefore the taxes paid on it. But some critics see it as an unnecessary tax break for businesses.
The council already has approved annexing much of the land to be used for the business park.
