Humboldt considers $200K abatement for new business
HUMBOLDT – The Humboldt City Council gave its backing Monday to offering a new business $200,000 in tax abatements to locate in Humboldt.
“The Humboldt County Development Association is in talks with a business prospect that is potentially building a facility in Humboldt that will produce agricultural tanks made of fiberglass and steel,” City Administrator Aaron Burnett said.
The agreement would be for slightly more than $200,000 in tax abatements over a 10-year period. The state is also offering considerably more incentives than the city to locate in Humboldt, Burnett said. The discussion has been ongoing for two years.
“If it comes to Humboldt it will employ 13 people” he said. “I know this is incredibly vague but it is an ongoing development issue.”
Burnett brought the matter to the council, he said, because there needs to be some assurance made to the business that the council has considered the offer and understand there would be $200,000 in tax abatements.
“The total property value they will have will be about $1.3 million,” Burnett said.
If the business does come to Humboldt, the plan is to place it in its own urban renewal area so property taxes can be used for future developments in the area, Burnett said.
Councilman Darrell Rusher said he was in favor of doing whatever it takes to bring the business to town.
Councilman Joel Goodell was also in favor.
“That’s why we are doing everything that we are doing, to bring in more business,” he said.
In other business, the council:
- Approved an amendment to the current budget to reflect $1.5 million in increased revenue, and $3.5 million in increased expenditures.
- Approved the first reading of an ordinance designating a revitalization area for residential tax abatement purposes. The three areas to be added include Willow Ridge, Eagle Ridge, and West River Drive along with some other isolated parcels. The city will offer 100 percent tax abatement on the first $75,000 of taxable valuation and 50 percent abatement on additions up to $150,000 valuation.
- Approved plans for improvements to the airport fencing. The cost is estimated to be about $73,000 of which 85 percent would be covered by the state.
- Approved participating in the state Income Offset Program allowing the city to collect bad debt off tax returns, gambling money, and other state associated payments.
- Approved the first reading of ordinances increasing the water and sewer deposit agreements for renters at apartments where the landlords have notified the city they will not accept responsibility for the tenants’ water and sewer bills.