The Marion Common Council approved a three year tax abatement for a soon-to-be-built commercial fireworks and Halloween store.
The council voted 6-2 Tuesday night in favor of issuing a three year tax abatement to the commercial building that will soon stand at 1421 W. 10th St. and will be owned and operated by Mary and Ron Vielee as both a fireworks and Halloween store that would employ 15 part-time, seasonal employees. The nearly 6,000 square foot building is expected to be completed by the end of May of this year.
Council members Steve Henderson and Alan Miller were the two members that voted “no.” Council Member Don Batchelor was not present at Tuesday’s regular meeting.
The three year abatement will cover the whole amount property taxes the first year, 90 percent - with the Vielees paying an estimated $724 a year - the second year and 80 percent - with the Vielees paying an estimated $1,1448 a year – the third year. After the three years the Vielees will pay an estimated $5,400 a year in property taxes, according to a document provided by Mary Vielee and Grant County Economic Growth Council Executive Director Tim Eckerle at the Jan. 19, 2016 council meeting.
The approval did not come quick or easy, however.
A little over an hour of debate and discussion from nearly all council members and a handful of citizens passed before the tax abatement, with an amendment added to decrease the abatement from six years as was initially requested by the Vielees down to three years, was formally voted on.
For Henderson, the issue for him was whether or not the city could afford to continue giving tax breaks while the city suffers financially.
“Part of the reason is we’ve cut ourselves so short by giving discounts to everyone, we’re out of them,” Henderson said.
Miller said the lack of the new business creating any 12 months a year, permanent jobs was still reason enough for him to vote “no.”
For Council Member Lynn Johnson and David Homer, both of which voted no on Jan. 19’s meeting, the three years abatement amendment and the Vielees’ over 40 years of business in the city of Marion were enough to change their vote to a “yes,” though both expressed their desire for the council to create guidelines on how it will handle tax abatements in the future.
The more than an hour long debate and discussion was visibly frustrating for both Ron and Mary Vielees. The two defended their tax abatement request and the nature of their business multiple times.