Industrial properties in Newton on track to receive 5-year partial tax exemptions

To prepare for the prospective businesses that may be interested in building new facilities at the proposed rail park just northeast of town, the Newton City Council is in the process of establishing partial tax exemptions for industrial properties. Portions of industrial property taxes would be abated over a five-year period.

According to city documents, industrial properties would be afforded a 75 percent tax abatement in the first year, a 60 percent abatement the second year, a 45 percent abatement the third year, a 30 percent abatement the fourth year and a 15 percent abatement the fifth year.

Upon adopting this ordinance, the Newton City Council will hold a public hearing to consider a tax exemption for the currently under construction industrial building at 1610 N. 15th Ave. E. by CMGA Enterprises, LLC. The public hearing will be set at the June 16 meeting, approving the exemption no sooner than July 21.

However, only the first reading was passed by city council at its May 5 meeting. Staff noted the timeline could be accelerated should council choose to waive the second and third readings of the ordinance. Newton Mayor Evelyn George noted these tax exemptions are in direct response to the proposed rail park.

“This was an item that we had talked about wanting to have in place prior to the rail park prospects coming in so that we have something ready,” George said.

Newton News previously reported that the industrial rail park could be the biggest economic development project post-Maytag. The rail park is a collaboration with Iowa Interstate Railroad, Alliant Energy, Jasper County and City of Newton. The rail park would directly connect industries to a full-service rail terminal.

Jim Bowman, senior director of site and economic development at Iowa Interstate Railroad, told Newton News this project is unique.

“You’ve got a railroad, a large electric utility company and the public sector partnering,” he said. “It’s a true public-private partnership … I don’t know if this exists anywhere else in Iowa, to do a major industrial development with these four entities. I’m really proud that we could bring these groups together.”