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Tax break to spur housing in Fairmont rejected

FAIRMONT — A tax abatement program to spark construction of multi-family housing failed to win approval from the Fairmont City Council on Monday.

Linsey Preuss, Fairmont’s economic development coordinator, told the council that Fairmont has a “very low” 2 percent vacancy rate for rental housing, which can make it difficult for area businesses to secure an adequate work force.

“The market is so tight right now. We need to encourage people to build,” she said.

The proposed program would aim to spur development of more housing options, with the abatement for 10 years of real estate tax increases resulting from the new multi-family housing built in the city limits.

The program already has received unanimous support from the Fairmont Economic Development Authority, which cultivated the proposal, and the Fairmont Area School Board. Martin County commissioners have discussed expanding the measure to a countywide program.

Councilor Tom Hawkins lobbied to table the vote until the next council meeting to explore the possibility of targeting specific areas of Fairmont for the abatement. Hawkins, a voting member of FEDA, had pushed to have the abatement program focus in areas around downtown Fairmont when the economic development group discussed the proposal at its Aug. 12 meeting. At the time, he said targeting a specific area would prevent somebody from putting up an apartment building on a cheap piece of farm land, but he later voted in support of the citywide plan.

“Yours is the only concern,” said Councilor Bruce Peters, also a voting member of FEDA.

“I’m 100 percent behind it,” Hawkins said. “We just need to look at targeting it. I don’t think a two-week delay is going to hurt anybody.”

Preuss reminded the council that FEDA’s recommendation “would include the whole city.” Specific areas could be targeted or marketed, and each abatement request would have to undergo a public hearing and receive council approval.

“I’m not trying to stop this. I’m trying to do it right,” Hawkins said.

“They (FEDA) voted for it. It was their responsibility. Why would we question that?” asked Mayor Debbie Foster. “Why even bring it to FEDA if we’re not going to listen to their recommendation?”

Hawkins said he was told by a bond company it would be more difficult to add any restrictions after the measure received council approval. He also said that members of the city’s Planning Commission and Comprehensive Use Plan Committee wanted to look at the abatement proposal.

Preuss noted that those entities do not oversee programs like the one proposed, and Peters said it was “just dumb to try to micromanage” the program.

But Hawkins adamantly slapped away any suggestion to move forward with the abatement program until what he called “due diligence” be completed.

He made a motion to postpone the vote to give him time to meet with “key people” from the Planning Commission and FEDA. Ruth Cyphers seconded the motion, but it was voted down, 3-2, with Peters and council members Wayne Hasek and Randy Lubenow voting no.

Lubenow said he was “confused” and questioned why there was a “blanket” statement.

Preuss said multi-family housing is not happening on its own and that she is working with developers who need some kind of financial incentive to move forward.

Peters made a motion to approve the original abatement proposal, and Hasek seconded it. Hawkins and Cyphers voted no, and Lubenow abstained. Because Lubenow’s abstention was not based on a conflict of interest, it was considered a no vote, and the motion failed.

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