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Sibley County Commissioners, by a 3-1 vote, approved a tax abatement for United Farmers Cooperative of Winthrop.

Earlier this month, Winthrop officials asked the county to consider a tax abatement for the project. United Farmers Co-op will be building a new fertilizer plant in the Winthrop industrial park. The estimated market value on the fertilizer plant is $2.6 million.

As part of the project, the City of Winthrop will be extending its storm sewer to the east. The abatement would be for up to five years and would be used to help pay for the storm sewer project, which is estimated to cost $200,000.

With a tax abatement, the property owner continues to pay its real estate taxes, and the county would issue a check back to the city to pay for the storm sewer.

Commissioner Bill Pinske cast the lone dissenting vote, stating that he would like to see all tax abatement requests prior to starting the projects. He also said that “city infrastructure has been the city. People that the use the services pay for it.”

Commissioners Leo Bauer, Harold Pettis, and Lee Anderly supported the abatement request. Commissioner Charlie Woehler was absent from the meeting because he was hospitalized. Woehler, however, in a telephone conversation with chairman Bauer, expressed his support for the abatement request.

Commissioners were told that in Gaylord, tax increment financing was used to pay for infrastructure and streets when Michael Foods expanded.

Commissioner Harold Pettis expressed support for the project because United Farmers Co-op is an established business.

Shannon Sweeney, Winthrop’s financial advisor, said that with tax increment financing (TIF), the county has no say. “In this instance, the city could have used TIF, but tax abatement provides more flexibility. We are asking the county to be part of the process and to be able to negotiate its portion of the project.”

With the project, the City of Winthrop and Sibley County will each be abating approximately $30,000 in taxes annually.