MARSHALL — A property tax abatement request for a proposed hotel development in Marshall passed the Lyon County Board on Tuesday.

However, county commissioners were divided on whether the abatement term should be for four years, or a shorter time.

During discussion of the request, Commissioner Rick Anderson said he understood the economic development aspect of the abatement request, “But I have a hard time selling that to the farmers down in the southern part of the county.”

The four-year tax abatement request passed 3-2, with commissioners Anderson and Thomas Andries casting the votes against.

Lyon County commissioners held a hearing on three different proposed commercial property tax abatements Tuesday. The list of requests included one for a property on Airport Road in Marshall, one for a property in rural Lynd, and one for property on Commencement Boulevard in Marshall.

The Marshall property is the site where developers are seeking to build an 84-room Hampton Inn near the Red Baron Arena and Expo. In June, Northfield-based development firm Rebound Partners brought a request for a property tax abatement to the county board.

At a June commissioner meeting, Rebound representatives said they were requesting a potential 10-year tax abatement from the county. However, the proposal brought to Tuesday’s hearing was only for four years, in keeping with county precedent.

The proposed tax abatement for the hotel property was estimated to start in 2028 and run for four years.

“That’s going to depend on completion date (of the project),” said Lyon County Auditor/Treasurer Aurora Heard.

The county portion of the increased tax paid by property owners would be reduced 80% the first year, 60% the second year, 40% the third year, and 20% the fourth year. For the hotel property, the estimated total tax abatement was about $59,000.

“Just in case there’s any confusion from the public or anyone else, that abatement is not a reduction in the existing tax. It’s when the value of something increases, there’s just a temporary reduction on the increased property tax,” said Commissioner Paul Graupmann. “It’s just a delayed increase of tax, not a reduction of existing tax.”

Anderson asked if commissioners could approve property tax abatements with a term of less than four years.

“This is just off the top of my head, I think since the policy went into place in 2018 there’s been a half a dozen commercial properties, and the board has applied the same method to all of them. If the board chooses to do something different, I believe there’s a disclaimer in there that it’s up to the discretion of the board,” Heard said.

“If we change from that way, we’re going to have people upset,” said Commissioner Gary Crowley.

“I think it’s up to the discretion of the board,” Anderson said.

Commissioner Todd Draper said he would be in favor of a four-year abatement.

“I think there’s no doubt that the hotel is a good fit out there. I think there’s a need for it,” he said.

The motion passed 3-2, with commissioners Anderson and Thomas Andries casting the votes against.

In separate motions, commissioners also approved abatements for the Airport Road and Lynd properties.