Mar 11, 2013 2 min read

Washington School Board Monday night got introduced to two plans that would offer tax incentives to businesses that move into the city.

City Councilman Matt Staniszewski and Matt Uram, chairman of the Business District Authority Economic Restructuring Committee, presented the board with information on the Local Economic Revitalization Tax Assistance program that is currently being considered by city council.

“We’re trying to attract businesses into the city,” said Staniszewski.

The city’s current tax abatement ordinance, or Local Economic Revitalization Tax Assistance Act, is set to expire in the summer. The new ordinance seeks to extend the LERTA while providing a graduated abatement program. The other program addresses the city’s business privilege and mercantile taxes.

Under the proposed new ordinance, the abatement will be available for any new business locating to the city. The deduction would be 100 percent in the first year; 85 percent in the second; 66 percent in the third; 50 percent in the fourth; 34 percent in the fifth; and 17 percent in the sixth year.

In 2009, city council and the school district enacted a neighborhood residential LERTA that provides tax break incentives to city homeowners who renovate their home or construct a new home.

By participating in the LERTA, a homeowner is given a five-year tax break on any increase in taxes that would stem from improvements. This includes any new structure built on an existing city lot.

The overall goal is to improve the quality of the neighborhoods and encourage neighborhood pride, said Staniszewski.

The recent tax incentive programs came out of a think tank within the business district authority to include property owners and businesspeople. Its goal is to develop a plan to spur economic activity in the city that would create well-paying jobs and eliminate blighted properties.

Uram said, “Our team analyzed existing systemic disconnects within the community and provided solutions to the problems. This is a great start to ensure the right environment for economic development.”

The school board seemed receptive to the proposed plans, especially after Staniszewski said City Council is considering adopting ordinances for both.

However, director William Braun said he first wants to see what the city does before voting.

“We got caught before,” Braun stated.

Staniszewski said there are plans for both city council and the school board to hold a joint meeting about the proposals.