If homes don't have a high enough price tag, a municipality could end up losing money. That’s because, under the state’s property tax caps, lower assessed values might not generate enough tax to cover the cost of city services.
City officials say they recognize the need to revitalize Allisonville Road, and the area is a priority as the city creates a framework for the future through its comprehensive plan, which looks as far ahead as 2040.
Hundreds of acres of undeveloped land surround the 35-acre site the popular Swedish home furnishing company selected—land now ripe for new projects. And in other communities, hotels, restaurants, retailers and even tech companies have followed Ikea stores.
In his state of the city speech, Mayor Andy Cook said he has "wild ideas" for a center that could house government offices, a library or a health center. He also says residents may need to pay $10 to $20 per month more in taxes to fund public safety.
The economic development agreement between the city and the Swedish home furnishing company requires the city to cover the costs for road, park, bridge, permitting, development and sewer impact fees. The total savings for Ikea is estimated to be $1.66 million.
Dura Products will construct a 15,000-square-foot building and furnish it with new logistical, IT and manufacturing equipment. The capital investment is expected to be $1.8 million and new equipment is expected to cost $1.15 million.