Fairfield Economic Development Association: construction on new building in industrial park to be completed by end of month

FAIRFIELD - The Fairfield Economic Development Association (FEDA) is seeking a tax exemption on a new building in the Fairfield Industrial Park.

At the city council meeting on Monday, Sept. 23, FEDA Executive Director Joshua Laraby said in August of 2016, a 28-e agreement was finalized between FEDA, the City of Fairfield, Jefferson County Board of Supervisors, Access Energy Cooperative and Northeast Missouri Electric Power. The agreement was set in place to fund and oversee the development of a new building that is being built in the industrial park. The construction is set to be complete by the end of the month, he said.

'All the partners worked together in this planning process and an important part of the financial model to make this successful, was to use the way the Iowa State Revenue Department authorizes municipalities to exempt taxes for speculative buildings during its speculative phase,” he said.

Laraby further explained this means as long as the building is not leased or sold during that time, it is not in its speculative phase. To get the building into its speculative phase, the partners will sell the building for cost. As a result, the partners get an expanded tax bases and job created. The goal, Laraby said, is to create between 20 and 25 jobs with the new building.

The council decided to suspend the rules and move from a first to a third reading, per Laraby's request, for the tax exemption. Laraby said this was in order to keep the project on a timeline as it is set to open in late October. The third reading will be read at the next council meeting.

In other news, Fairfield City Administrator Aaron Kooiker said Alliant Energy has proposed a 7.5 percent rate increase to the city. Kookier requested the council write a letter to the Iowa Utilities Board opposing the increase. The council approved the decision unanimously.