By PETER HUSSMANN
County records show that the development corporation for the Prairie Gas convenience store that abruptly closed last week failed to make its first half property tax payment of more than $16,000, the majority of which would have been returned in the form of property tax rebate from the city per the terms of a development agreement.
Treasurer records show that Douglas & Jones Development, LLC,the development corporation for the convenience store located near the Iowa Speedway, failed to make its first half tax payment of $16,032 by the Sept. 30 deadline. With accrued interest, the tax delinquency now stands at $16,753.
Douglas & Jones Development, LLC, was organized by Dave Fisher in January of 2007, secretary of state records state. In June of that year, Douglas & Jones entered into a development agreement with the city of Newton to construct the Prairie Gas convenience store.
Under the terms of the agreement, the city agreed to provide a seven-year sliding scale of economic development property tax rebates to the development corporation in return for the construction of the facility with a minimum assessed value of $850,000. No tax abatement was offered.
Beginning in the current fiscal year (2009-2010), the agreement states, the city would provide a 100 percent property tax rebate. Continuing over the course of the next six fiscal years, the city agreed to property tax rebates to the development corporation of 100 percent, 90 percent, 70 percent, 40 percent, 30 percent and 20 percent.
The rebates are made on the real estate taxes collected by the Prairie Fire Economic Development Tax Increment Financing District attributable to the minimum improvements and land value. County assessor records show the convenience store currently has an assessed value of $892,500.
Last week, Fisher said he planned to close and sell the convenience store to focus his efforts with partner Alan Halferty to develop the Prairie Suites motel under construction adjacent to the store. Fisher and Halferty, acting as HNF Development, entered into a development agreement with the city for the hotel project that provided the developers with a $250,000 economic development grant, half of which has been paid out with the remainder to be made available upon completion.
Contractors on the motel project filed mechanics liens last week and earlier this month totaling more than $280,000.
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