FAIRMONT– At the Fairmont Economic Development Authority (FEDA) board meeting on Monday, the board learned about a business subsidy application from Cress Refrigeration for tax abatement.

Economic Development Coordinator, Ned Koppen, said that Cress Refrigeration bought property on Bixby Road and plans to build a new facility there.

“The story that they have is they want to grow. That growth would be growing by about 40 percent. Staff wise they want to add two technicians and an office manager. Without the abatement they don’t feel that they can do it. With the abatement, it would allow them to grow their business,” Koppen said.

He added that the county and the Fairmont Area School district will also receive a tax abatement request from the business but that the city’s share is the largest.

“They’re asking for five years. The difference between the current tax value to that property and what the tax value will be year by year over five years will be $73,685.21. That will be the city’s abatement,” Koppen said.

Board Member Chris Pierce said he thinks there should be a policy that anyone who builds something new in town should have tax abatement.

“Anything we can do to induce growth,” Pierce said.

Board Member Jay Maynard agreed and said it would encourage business growth in Fairmont, which he said many people want.

Koppen told the board that it would not need to act on the matter, but he wanted to know whether it supported him bringing the request forward to the city council.

Board Member Jon Omvig said he felt that was a good idea, but that he also felt there was a difference between new construction and existing lots where there’s no need for the city to extend utilities.

“There’s got to be a pay back to the city for the growth,” Omvig said. “I think it’s good, but I don’t think it’s necessarily a blanket statement.”

Koppen agreed and said every request for abatement needs to be looked at. He said he will plan to bring this request to the city council at the first meeting in June.

Also during the meeting, some guidelines were debated surrounding signs as they relate to the facade loan program.

Koppen said that Waters Edge had applied for a facade loan and that new business owner Garrett Myren, who purchased the former Hertzke Construction building, wants to put up a new vinyl sign on an existing structure.

“It’s kind of a small ask in comparison to our others that we’ve approved,” Koppen said.

The loan would be for just $839 but some board members questioned whether new signage alone should qualify for a facade loan.

Omvig acknowledged that qualifications for the loan had been met, but he asked if the replacement of a sign was the purpose of the facade loan program.

Koppen said it would still be for the front facing exterior. Maynard added that it would be an improvement on what the public sees.

Pierce asked whether the board should start differentiating between attached signage and non-attached signage on a facade.

“I guess my point was, if it’s signage that’s in conjunction with an overall facade improvement, to me that’s what I would consider the purpose of the program. If you’re just changing out the plastic on the sign…,” Omvig said, acknowledging again that the requirements are being met as they are.

Board Member Jeff Rouse said, “a facade is a facade. If it improves a property, improves the business, helps make it happen… to me it’s the same thing. It’s part of the presentation of the property.”

The request for the facade loan was unanimously approved.

After the discussion, Koppen said some good points were made on both sides and asked the group if it wanted to change the guidelines for the facade loan program, specifically regarding signs.

“We can change it at any time. We can stop any of our programs at any time. This one has been, from my perspective, very successful, lots of activity and impactful,” Koppen said.

The board also reviewed its third Local Housing Trust Fund Loan application for 1428 N. Elm Street. Koppen shared a packet of information with the board and said that it would fall under the category of a single family rental unit.

“The owner wants to do a fairly substantial amount of work on a property that needs some work,” Koppen said.

There was some discussion over the fact that the property owner, Mike Schutz, is a city employee. There was understanding that if FEDA approved of the application, it would still have to go to the city council for final approval.

Maynard, who is also a city council member, said, “I believe that for a program like this, a city employee needs to be treated exactly like any other citizen of Fairmont, no better, no worse. As long as he meets the eligibility requirements, and as long as this board approves him as a suitable candidate, then as a council member I see no reason not to.”

The application was approved by the FEDA board and Koppen said he would bring it to the city council for final approval at its meeting next month.