City Council Meeting Date: November 12, 2024
To: Mayor and City Council
City Administrator
Rice County Commissioners
County Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Northfield City Council Resolution Approving Tax Abatement on 115 5th Street (Northfield News Building).
Rice County Commissioner Resolution Approving Tax Abatement on 115 5th Street (Northfield News Building).
Body
Action Requested:
The Northfield City Council shall make a motion to approve a resolution authorizing the use of tax abatement.
Rice County Commissioners shall make a motion to approve a resolution authorizing the use of tax abatement.
Summary Report:
The Northfield City Council approved the sale of 115 5th Street on April 23, 2024, to Loon Liquors, LLC. The Council sold the property for the market appraised value of $960,000 with the understanding that the remaining out of pocket cost investment by the City would be recovered through recovery of new taxes generated from the property (using tax abatement as one use of the tool utilized for economic development/redevelopment authorized by state statutes).
City staff has worked with Rice County staff to coordinate the tax abatement process throughout the due diligence period of the Purchase Agreement. Project needs will be vetted as a determination is made on the tax abatement needed to recover the City's investment.
A Public Hearing on the tax abatement of 115 5th Street W. Northfield, MN is required in state statute to enable each taxing authority to use the tool. For efficiency's sake, the Northfield City Council and Rice County Commissioners will hold a joint public hearing. City staff and Ehlers Senior Municipal Advisor Nick Anhut will provide a presentation on the Tax Abatement process.
Subsequent and separate resolutions are prepared for the Council and Rice County Commissioners to consider. A draft Tax Abatement agreement for each action is included as an attachment to the resoluti...
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