The Fort Dodge, Iowa, City Council is helping a local motorcycle shop expand by offering a graduated tax increase that gives it time to add value to the business.
Racing Unlimited president Alan Rodenborn told the council the addition will create space for building racing engines for motorcycles that are sold throughout the United States, replacing a rented downtown space.
The council will have to vote twice more to finalize the deal, but Monday approved the principle of letting Racing Unlimited Inc. gradually assume the higher property taxes that go with the addition that’s under construction. Completion is expected this spring.
Once the addition is on the tax rolls, Racing Unlimited Inc. will pay taxes on 20 percent of its taxable value in the first year, Dennis Plautz, the city's director of business affairs and community growth, told the Fort Dodge Messenger News. That percentage will increase over 10 years until the dealer is paying 100 percent of his property tax.
Posted by Holly Wagner