[Adopted as Ch. 166 of the 2000 Code]
It is the intent of this article to provide financial incentives
for the development of speculative shell buildings by community development
organizations, not-for-profit cooperative associations under Chapter
499 of the Code of Iowa, or for-profit entities to attract manufacturing,
processing, and warehouse employers to the City of Marion.
For purposes of this article, the following definitions apply:
An organization, which meets the membership requirements contained
herein, formed within a City or county or multi-community group for
one or more of the following purposes:
To promote, stimulate, develop, and advance the business prosperity
and economic welfare of the community, area, or region and its residents.
[Amended 3-23-2023 by Ord. No. 23-02]
To encourage and assist the location of new business and industry.
To rehabilitate and assist existing business and industry.
To stimulate and assist in the expansion of business activity.
For purposes of this definition, a community development organization
must have at least 15 members with representation from the following:
a representative from government at the level or levels corresponding
to the community development organization's area of operation; a representative
from a private sector lending institution; a representative of a community
organization in the area; a representative of business in the area;
and a representative of private citizens in the community, area, or
region.
New buildings or structures and includes new buildings or
structures, which are constructed as additions to existing buildings
or structures. New construction also includes reconstruction or renovation
of an existing building or structure which constitutes complete replacement
of an existing building or structure or refitting of an existing building
or structure, if the reconstruction or renovation of the existing
building or structure is required due to economic obsolescence, if
the reconstruction or renovation is necessary to implement recognized
industry standards for the manufacturing or processing of products,
and the reconstruction or renovation is required in order to competitively
manufacture or process products or for community development organizations,
not-for-profit cooperative associations under Chapter 499 of the Code
of Iowa, or for-profit entities to market a building or structure
as a speculative shell building, which determination must receive
prior approval from the City Council.
A building or structure owned and constructed or reconstructed
by a community development organization, a not-for-profit cooperative
association under Chapter 499 of the Code of Iowa, or for-profit entity
without a tenant or buyer for the purpose of attracting an employer
or user which will complete the building to the employer's or user's
specification for manufacturing, processing, or warehousing the employer's
or user's product line. Speculative shell buildings do not include
properties developed for or marketed as service-oriented businesses
such as, but not limited to, commercial office or retail space.
An exemption from property taxation is hereby allowed for the
new construction of shell buildings by community development organizations,
not-for-profit cooperative associations under Chapter 499 of the Code
of Iowa, or for-profit entities for speculative purposes or the portion
of the value added by buildings being reconstructed or renovated by
community development organizations, not-for-profit cooperative associations
under Chapter 499 of the Code of Iowa, or for-profit entities in order
to become speculative shell buildings. This exemption shall apply
only (1) for properties that are currently served with public water
and sewer and for which no road improvements are needed; or (2) for
properties for which the developer will assume all responsibilities
for such public improvements. An exemption shall not be granted a
speculative shell building of a not-for-profit cooperative association
under Chapter 499 of the Code of Iowa or a for-profit entity, if the
building is used by the cooperative association or for-profit entity,
or a subsidiary or majority owners thereof for other than as a speculative
shell building. Eligibility for an exemption as a speculative shell
building shall be determined as of January 1 of the assessment year.
[Amended 3-23-2023 by Ord. No. 23-02]
An application shall be filed for each project resulting in
actual value added for which an exemption is claimed. The application
for exemption shall be filed by the owner of the property with the
Linn County Assessor's Office by February 1 of the assessment year
in which the value added is first assessed for taxation. Applications
for exemption shall be made on forms prescribed by the Director of
Revenue and Finance and shall contain information pertaining to the
nature of the improvement, its cost, and other information deemed
necessary by the Director of Revenue and Finance.
[Ord. No. 04-02]
The tax exemption or partial tax exemption shall be effective
for the assessment year in which the building is first assessed for
property taxation or the assessment year in which the reconstruction
or renovation first adds value and all subsequent years until the
property is leased or sold or until the exemption is terminated by
ordinance of the City Council. If the shell building or any portion
of the shell building is leased or sold, the portion of the shell
building which is leased or sold shall not be entitled to an exemption
under this section for subsequent years. Upon the sale of the shell
building, the shell building shall be considered new construction
for purposes of § 427B.1 of the Code of Iowa if used for
purposes set forth in § 427B.1.
