Industrial properties in Newton are eligible for partial tax exemptions

Industrial properties new to Newton will now be eligible for partial tax exemptions. The city council this past week adopted an ordinance establishing an industrial abatement to local property taxes for improving industrial real estate, which will better prepare the city for prospective businesses interested in the new rail park.

The five-year abatement schedule would offer industrial businesses 75 percent exemptions during the first year, 60 percent the second year, 45 percent the third year, 30 percent the second year and 15 percent the fifth year. However, council still has final say over which businesses are to receive exemptions.

For instance, upon the adoption of this particular ordinance, the council will hold public hearings for a currently under-construction industrial building at 1610 N. 15th Ave. E. by CMGA Enterprises, LLC to receive these exemptions. The first hearing would be June 16, and the request approved no sooner than July 21.

Newton Mayor Evelyn George previously noted the tax exemption is something the city had talked about wanting in place prior to the creation of the rail park.

Located in the northeast part of town, the rail park is a collaboration between Iowa Interstate Railroad, Jasper County and the City of Newton. The rail park would directly connect manufacturing industries to a full-service rail terminal, allowing their products to immediately be out to market.

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.”