County fields tax abatement question
June 25th, 2009The City of Winthrop is seeking tax abatement as part of its industrial park project.
Winthrop is proposing to capture the new property taxes created by the new Winfield Solutions facility in order to pay its share of the project cost, and is asking that Sibley County consider participating in a similar manner.
Winthrop is requesting a 15-year abatement. It is estimated that the new Winfield Solutions facility will generate $22,130 in County taxes annually, based on 2009 property taxes. The City will also be abating its share on the property, estimated to generate $23,422 annually.
Sibley County Commissioners, last week, scheduled a public hearing to consider the request for Tuesday, July 14 at 9:30 a.m.
Several months ago, the City of Winthrop began developing approximately 12 acres of property adjacent to Highway 19 as an industrial park. The City sold about five acres to Winfield Solutions in early 2009.
Winfield Solutions has begun construction of a 63,000 square foot agricultural chemical warehouse and distribution facility within the new industrial park.
Public improvements of streets, sewer, water, and electrical to the industrial park have been estimated at more than $1.6 million. Winthrop secured a $250,000 grant from the State of Minnesota, and also received an additional $250,000 grant. The City was unsuccessful at securing federal funding and MnDOT assistance for public improvements and about $450,000 in work needed to install turn lanes on Highway 19.
Special assessments expected to be levied for the project are estimated at $1 million. Winthrop’s share of the project cost will be about $450,000, including land acquisition costs associated with the unsold property. Once the project is completed, Winthrop will retain 4.73 acres of property that will be served by public utilities and streets. Shannon Sweeney of David Drown Associates of Waconia, explained that the City plans to market the property for industrial projects that will create good jobs and tax base for the City and County.
The City of Winthrop also offered to share 50% of any financial gain on the sale of the vacant parcel with the County. County Commissioner Bill Pinske said that he would prefer to have the tax abatement for a shorter term. He also would rather have the City realize any financial gain on the property.
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