The Jefferson city council handled a pair of time sensitive items at a special meeting Tuesday afternoon.
The first item was to set a public hearing setting the maximum tax levy for the budget year starting July 1, 2021. The public hearing is to meet a state requirement that municipalities hold a public hearing and then approve by a two-thirds vote of the council a levy increase if it’s in excess of 2 percent.
The proposed city budget increases the levy rate by less than 0.5 percent. City staff initially gave legal notice of the levy increase in the same notice as the proposed budget. That didn’t meet state requirements, as the state requires two separate public hearings be held.
The city council at the special meeting set a public hearing on the levy rate for the April 13 meeting. The public hearing on the budget will be held at the following meeting, April 27. At that time the council will approve a resolution adopting the budget.
As the other item of business, the council approved sending a non-binding letter of intent expressing support for Nate Adams/ NGA Ventures LLC’s proposed repurposing of the 1921 Greene County school building as apartments.
The Greene County Schools board in February approved the sale of the building to NGA Ventures for $1. Adams is in the process of obtaining funding for the $6 million project. Included in his efforts is applying for a $1 million loan from the Iowa Finance Authority. The loan application is due April 10.
The letter of intent not only indicates support for the project, but per Iowa Finance Authority requirements, it also outlines potential avenues for the city to provide financial support in the future. The city may amend the urban renewal plan to include the city block on which the building is located, making it eligible for economic incentives like a tax abatement or a forgivable loan.
City administrator Mike Palmer said a $300,000 forgivable loan, paid for with tax increment financing (TIF) revenue, would be in line with the support provided to T.J. Sebolt for his wrestling academy located in the former Field House north of the LEC on S. Chestnut St.
Palmer and city attorney David Morain both said the letter of intent approved at the April 6 meeting does not commit that the city will take any specific formal action.
The special meeting took less than 5 minutes.
