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Economic
Development Tax Abatement Policy |
| OTTER
TAIL COUNTY POLICY ON ECONOMIC
DEVELOPMENT TAX ABATEMENTS
(Adopted 9/8/98)
(Amended 7/11/00)
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Counties
are authorized pursuant to Minnesota Statutes
§469.1812 through §469.1815 to provide
tax abatements for economic development purposes.
Counties do not receive local government assistance
from the state, as do other levels of local
government. There is a natural phase-in of property
taxes on new construction resulting from the
assessment and levy procedures. In determining
whether or not the Otter Tail County Board of
Commissioners should utilize tax abatements
for economic development purposes, the following
factors will be considered:
1. The benefits to the County must be at least
equal to the costs of the abatement (M.S. §469.1813,
Subd. 1(a)).
2. Whether the public interest will be served
in one of the following respects (M.S. §469.1813,
Subd. 1(b)):
a. Increase or preserve tax base;
b. Provide employment opportunities in the county;
c. Provide or help acquire or construct public
facilities;
d. Help develop or renew blighted areas; or
e. Help provide access to services for residents
in the county.
3. Total tax abatements in the county cannot
exceed five percent of the current net levy
or $100,000.00, whichever is greater (M.S.§469.1813,
Subd. 8). No individual tax abatement should
exceed one percent of the current net levy.
4. The extent to which the proposal adds to
the county's net commercial, industrial or general
tax base.
5. Whether or not the new business provides
services not already provided in the county,
or which are needed.
6. The extent to which the proposal results
in an increase in new employment opportunities
that provide good wages and benefits for employees,
or the retention of good jobs. Proposals that
provide quality employment, which is paid above
the minimum wage, and provides prospects for
advancement, are preferred.
7. Generally, establishments which will be engaged
in the retail sales of merchandise to the public
will not be considered for economic development
tax abatements unless they provide substantial
opportunities for quality employment and economic
development.
8. Otter Tail County does not support tax abatements
for proposals that are not economically feasible.
9. Whether or not the proposed business would
be in competition with existing businesses in
Otter Tail County. Abatements should not be
given to businesses, which would receive a competitive
advantage over existing businesses in Otter
Tail County.
10. The extent to which the project represents
"new" dollars into the county.
11. The extent to which the project requires
improvements in county infrastructure, such
as pollution control, road construction or other
traffic problems. Also to be considered is the
impact of the proposal on other county services
such as law enforcement, human services or prosecutions.
12. Whether or not the project will generate
significant environmental problems or alleviate
such problems. Factors to be considered include
the impact upon natural resources such as pollution
and crowding potential.
13. The extent to which other levels of local
government are in support of the project. The
County Board should receive a resolution from
the municipality and school district involved
that they will also be providing an abatement
for the project.
14. Tax abatements will not be provided to projects
receiving other forms of public economic assistance.
15. Consistency of the plans with County land
use controls.
16. A written application will be required before
Otter Tail County will consider granting an
economic development tax abatement. Applications
must be made by July 1 of each year, and all
applications will be considered thereafter.
The information provided on the application
will be reviewed and confirmed by county officials.
The application shall include the following
information:
a. A map or site plan, prepared by an architect
or engineer, showing the boundaries of the proposed
development including the legal description
of the property, parking and size and location
of the buildings.
b. General description of the project, including
size and type of buildings; business type or
use; traffic information, including parking
capacity, projected vehicle counts, traffic
flow and pedestrian safety; timing of the project
and estimated market value following completion.
c. A statement identifying the public benefits
of the proposal, including estimated increase
in property valuation, new jobs to be created
with estimate wage levels and other community
benefits.
d. A written prospectus of the developer's company
or corporation, principles, history and past
projects.
e. Financial information should be provided
including past information and pro forma future
projections for the project.
17. The County will generally limit its relief
of a deferral of taxes with an abatement of
interest and penalties which would otherwise
apply, with the taxes to be paid in a period
of time not longer than twice the length of
the period of deferral." |
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©Copyright 2001- County of Otter Tail, Minnesota. U.S.A.
All Rights Reserved.
This web site is maintained by the Otter
Tail County GIS Office.
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