Offering developers a property tax exemption to encourage development of the Pacific Ridge area prompted a heated discussion at the Des Moines City Council meeting on Oct. 30th.

The proposed legislation calls for a multi-family tax exemption on a number of new units developed on Pacific Ridge.

The units given the exemption would only pay tax on their land for eight years. The number of units that would be given the exemption is still unclear. Council Member Scott Thomasson recommended a cap of 2,000 units.

The city, with the Pacific Ridge Redevelopment Incentive Program, already offers a separate lower fee schedule for projects on Pacific Ridge that are over 50,000 square feet to encourage development of the area.

According to the city, fees are typically 20 percent less for those larger projects.

The tax exemption period begins as soon as the developer gets his certificate for occupancy approved. If it takes three years for a unit with tax exemption to sell, the new occupants will only have five years of tax exempt status left.

Mayor Pro-Tem Dan Sherman again expressed his concerns about the impact the tax exemption could have. He said he wished Des Moines wouldn't move forward with the legislation.

Sherman made a motion to remove the Pacific Ridge Tax Exemption from the budget. His motioned didn't make it to a vote, dying for lack of a second.

"Moneywise, it is not a win-win situation, the only person who wins is the developer," Sherman said. "It's not a good thing for the city."

It is written in the proposed ordinance that the development must preserve or increase the property value.

Sherman said his fear is the increased land values will not cover the additional city services that will be needed.

"Don't tell me that the only people who are going to be in these units are not going to need police services, they are going to be the healthiest people in the world and they are not going to need emergency medical services, etc.," Sherman said.

Councilman Ed Pina made the point that there are people living there now, anyone moving in to the new development would not necessarily be an overall increase to Des Moines' population.

Apartments and trailer parks, which cover a lot of the area looking at being redeveloped, are only taxed on the land value. Trailer parks are taxed as vacant land.

Sherman said he believes if the tax exemption is approved it could potentially bankrupt the city, or severely impair the Cities ability to provide services.

A public hearing on the tax exemption will be held on Jan. 15 at 7:30 p.m. at the Des Moines City Hall.