Economic Development in LeClaire

For qualifying commercial or industrial property, LeClaire currently offers two choices. The exemption applies to the new assessed value created by the improvements, not the existing land value. New construction on vacant land can qualify. 

The city's plan specifically says the program applies to rehabilitation, additions, and new construction, including construction on vacant land. The current plan permits eligible improvements completed on or before December 31, 2031, unless the City Council terminates or changes the program earlier. Importantly, if the city later terminates the program, exemptions already granted continue through their scheduled expiration. Le Claire Iowa 

There is also an application process. The property owner generally files with the City Council by February 1 of the assessment year for which the exemption is first claimed. The application includes the nature and cost of the improvements and the completion date. LeClaire also allows an owner to seek prior approval from the City Council before completing the project, although final exemption isn't granted until the improvements are completed and determined to qualify. Le Claire Iowa 

In Iowa, Tax Increment Financing (TIF) generally does not automatically reduce your property-tax bill. Instead, when new development increases a property's taxable value, the additional property-tax revenue—the "increment"—can be captured by the City within an Urban Renewal Area and used for eligible economic-development costs. Iowa Code Chapter 403 provides the legal framework. Iowa General Assembly 

For a private commercial project, LeClaire can enter into a development agreement where some of that TIF revenue is effectively returned to the developer as economic-development payments. LeClaire has done exactly this. For example, the Fareway redevelopment received an agreement providing 80% of the tax increment for up to 16 annual payments, subject to a $4.5 million maximum.