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The Fort Dodge city government will give up to $70,000 to the developer that constructed the new drivers license station on First Avenue South.
The City Council voted Monday to use tax increment financing money to reimburse FD DOT LLC for some expenses related to building the facility at 3229 First Ave. S.
Councilman Kim Alstott said the money will help to pay for water and sewer lines needed for the drivers license station and any other development in that area.
"Without these TIF monies the connections for adjacent properties do not happen," Councilman Neven Conrad said.
Councilman Terry Moehnke added that the changes that increased the project's cost were requested by the city.
Councilman Jeff Halter opposed the payment. He said tax increment financing money is to be used to clean up slums and blight, and added that the new drivers license station did not do that.
Halter also said he is opposed to contributing tax increment financing money to a project that is already finished.
Tax increment financing occurs when increased property tax revenue from a designated area is set aside to be reinvested in that area.
The measures needed to provide the money to FD DOT LLC were approved on two 5-1 votes.
Councilmembers Dave Flattery, Lydia Schuur, Alstott, Conrad and Moehnke voted yes. Halter voted no. Councilman Andy Fritz was absent.