Here are the details to the agreement with the Hy-Vee developer
Posted: Mon, May 6, 2019 6:48 PM
The development agreement approved Monday night with Ridge Development Company differs from the proposal in the original discussions between the city and the developer.
At first, the city had discussed tax abatements which would lead to no additional property taxes above those levied on the existing $836,500 valuation of the property in its current condition. In addition, a minimum assessed valuation of $1.6 million had been discussed for the property after the remodeling is completed. The new agreement calls for a minimum assessed valuation of $1.0 million instead.
"We know what we're going to put in (to the project) will far exceed that," said developer Brian Ridge. But he added, "We don't really know until we see the final construction figures."
The new system calls for Ridge Development to pay property taxes on the higher assessed valuation of the property and then receive rebate checks from the City of Decorah. Those checks will NOT total more than $425,000 and will NOT last more than 15 years--even if payments are less than $425,000. In fact, the lowering of the minimum assessment figure probably means the $425,000 figure will NOT be reached.
While the details of the agreement have changed, both sides seem happy with the final details. Ridge told city officials Monday night he's confident the Hv-Vee store "will bring a lot of quality jobs to town."