Owner of former Park Place building asks city for tax break

The owner of the building that once housed the Park Place skilled nursing care and rehabilitation center has requested an 18-month tax deferment from the city of Glenwood so he can secure a loan to fund a $1.25 million renovation of the property at 114 Green Street.

Aaron Rodenburg told members of the Glenwood City Council last week he would like to turn the building into a privately-operated assisted living facility that could house between 60-90 residents.

Rodenburg said his proposed facility would feature 27 regular assisted living units and 18 memory support units. The facility would create 25-30 jobs, according to Rodenburg.

Rodenburg said his tax deferment proposal was “similar to an economic stimulus plan, but a win-win” for both sides because all outstanding taxes due would be paid if the project is not under way within 12 months.

Rodenburg purchased the Park Place building shortly after Five Star Quality Care closed the facility in April 2015. Rodenburg conceded he had hoped to resell the property for profit but soon realized the facility has limited uses. He believes without his property taxes being deferred, including the payment due Sept. 30, he will be unable to secure a redevelopment loan for non-income producing properties.

“If I have to pay them (taxes) now, the project is not viable,” Rodenburg said.

The property has an assessed value of $275,000, according to Rodenburg - $202,000 for the land and $73,000 for the building. He projects the valuation of the property to rise to $2.5 million after the renovation, creating tax dollars for the city, county and school district.

“Most of that money would go to schools, but the facility doesn’t create a burden on schools, transportation or police,” Rodenburg said.

The council took no action on Rodenburg’s proposal, with council members noting they’d like to see the building restored and reoccupied but other governmental agencies that would be impacted by a tax deferment need to have a say on the matter. The city’s financial consultant, Clint Fichter, listened to Rodenburg’s proposal and suggested it might make more sense to look at a TIF (Tax Increment Financing) agreement instead of a tax deferment.