I went to a seminar many years ago in which government staffers were going to explain the details of a new federal program.

The meeting was at a hotel where a large open area had been sectioned off with room dividers so several sessions could be held simultaneously in smaller rooms.

In the room I was in, there was a space of about two feet where the room divider fell short of reaching the wall.

The two men in charge of the seminar grabbed it and and tugged at it aggressively until they pulled the room divider all the way to the wall, filling the gap. But in doing so, a gap was created at the other end.

One of the men turned to us and said, "Ladies and gentlemen, you just witnessed government solving a problem."

Everyone laughed - but no one disagreed.

That's why when a government program works, it's worth pointing out.

And it sure looks like the city has a good one going.

Last year, the Mason City Council approved a program in which residents could receive tax abatements for new construction or remodeling an existing structure.

It wouldn't be a government program if it didn't have a lot of details to it, but basically, it works like this:

If a property owner makes improvements that increase the assessed value of residential property by at least 10 percent or 15 percent for commercial property, they get a tax abatement. It's a five-year, 100 percent abatement on residential properties and a 10-year, sliding scale or three-year, 100 percent abatement on commercial properties. There is a $75,000 cap on the abated value of residential property.

The idea was to give a tax break to property owners, provide work for the construction industry and show people thinking about moving here what a progressive community we have.

So far, the city has received 42 applications - four commercial, 13 single-family houses, 11 garages or accessory buildings and 14 residential remodels.

Pam Myhre, director of growth development and planning, said the figures represent an estimated $13.8 million investment and over $4.2 million in residential improvements.

And someday, when the abatement periods are over, more money will flow into the city's tax base.

There don't appear to be any losers in this one, folks.

The room divider is covering the entire wall.

Reach John Skipper at john.skipper@globegazette.com or 421-0537.

Link:
John Skipper Column: A program that appears to be working

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February 20, 2012 at 2:49 pm by Mr HomeBuilder
Category: Room Remodeling