Taxpayer-discounted lots?

Springfield seeking development incentive

Staff photo by Fritz Busch Springfield Economic Development Director Joe Stremcha stands next to a sign near the corner of Brown County Road 5 and Appel Street on the east end of town. On May 17, the Brown County Board set a June 7 public hearing date for a five-year property tax abatement application by the Springfield Housing Development Initiative Program.

SPRINGFIELD — The Springfield Economic Development Authority has lots for sale.

Two 171.07-foot-by-141.875-foot lots are available for $22,500 each at the east edge of town on a high spot near County Road 5. Utilities are stubbed to each lot.

On top of that, new lot owners could get a five-year property tax abatement if an application is approved by Brown County and Springfield’s municipal government and school district.

On May 17, the Brown County Board set a public hearing to consider a five-year property tax abatement for the city. The hearing is scheduled for 9:05 a.m. on June 7.

The Springfield City Council and Springfield Public School Board will consider the abatement in the coming weeks.

Stremcha said the city recently had a three-year window for a 50% tax abatement but had no applications. In an effort to increase incentives to build new homes in town, the city is seeking a five-year 100% tax abatement.

Under the new abatement application, an average of $16,000 in city property taxes will abate — meaning not collect — over a five-year period from the developers or owners of new homes. The abatement would include an average of $4,700 in county property taxes over five years.

County Board member Dave Borchert said he certainly supported the proposal.

“It’s a great idea. I think we have to think differently to recruit people to the area,” Borchert said.

Each tax abatement application requires a public hearing.

Stremcha told commissioners on May 17 that there is one abatement program applicant so far.

The proposed site at 602 Appel Street includes a proposed 1,856 square foot, one-story single family home with no basement, vinyl siding and 1,024-square-foot heated garage using above average quality building materials, including 2×6 wood frame construction.

Estimated land value is $20,400; building value is $215,300. Estimated market value is $445,636.

Plans including breaking ground by June 4 and completion in the fall.

(Fritz Busch can be emailed at fbusch@nujournal.com.)


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