SIOUX CITY, Iowa (KTIV) -
One Sioux City restaurant has served up its last meal. The economy gets some of the blame, but so do Iowa's commercial property tax rates, which are the second-highest in the nation.
"We would of loved to stay here but you know, these business taxes are way to high and the rent, no concessions in it.," said Robert Byrne, Black Bear Diner Regional Director.
After opening in June of 2011, the Black Bear Diner on Hamilton Boulevard was the second of two Black Bear locations to open in Sioux City. But, the Hamilton location closed on Tuesday. The reason? The economy, and high business property taxes.
Robert Byrne, "The property taxes on this building alone are $44,000. At Lakeport Commons it's $20,000."
Byrne put some of the blame for higher taxes on state lawmakers, and what he said was their "lack of action" to lower them.
Republican representative Jeremy Taylor said lawmakers tried to in the last session. But, with lower taxes in neighboring South Dakota, Taylor says some companies choose to move.
Jeremy Taylor, Republican Sioux City said, "Well, if he's going to pay a third of the property taxes in South Dakota, I understand why some times businesses look elsewhere."
And, being on the border of two other states with cheaper commercial property taxes, Black Bear might move elsewhere.
Byrne claimed, "It's time to start either looking at Sioux Falls or Omaha."
Leaving Sioux City businesses in a bind.
Chris Hall, Democrat Sioux City said, "Property taxes are perennially are an issue that needs to be addressed here in Sioux City."
Something a Democrat and Republican agree needs attention.
Taylor, "It's time we really get bullish about Sioux City and growing Sioux City and this is one key factor in doing so."
One key to running a business.
Robert Byrne, summed it up, "You do your simple math. Now sell pancakes and see how many you have to sell to make those taxes."
The 45 employees at the Hamilton location can transfer to the Lakeport Commons location. Byrne said that restaurant will stay open.
