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Property tax exemption granted for repair shop

By Staff | Jun 3, 2009

The Rugby City Council on June 1 went along with the recommendation of the Rugby Job Development Authority, granting a five-year property tax exemption to Ray Rham for his Ray’s Repair shop to be constructed east of Samsara Cues in the city’s industrial park.

The exemption provides 100 percent tax relief the first year; 80 percent in year two; 60 percent in year three; 40 percent in year four; and 20 percent in year five. Rham was in attendance at the June 1 council meeting to explain his building plans. The structure will be a 70-by-80-foot steel building. He currently is located in the former Van’s Garage building along U.S. Highway 2 east of Rugby Lumber but needs more room.

Gerry Jacobson, Ward Two councilman, initially moved to offer a five year 100 percent property tax exemption to Rham, noting the city needs to offer more benefits to encourage business development and even residential development. However, the motion did not receive a second.

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