RTC on capitol agenda
Published Friday, March 28, 2008
Fergus Falls administrators say a property tax exemption is key to development of the Regional Treatment Center (RTC), and today they’re making their case to Minnesota lawmakers.
Mayor Russ Anderson, City Council member Ben Schierer and Economic Improvement Commission Director Harold Stanislawski were scheduled to testify this morning in front of a property tax sub-committee in the House. The goal is to get RTC property tax exemption in a local government aid bill working its way through the Legislature.
The exemption would clear the Kirkbride and five adjacent buildings from property taxes for 12 years and phase out the following three years, said Rep. Bud Nornes (R-Fergus Falls). It would rely on some combination of historical tax credits and tax abatement, said City Administrator Mark Sievert.
“I’m optimistic that this will be well-received,” Nornes said Thursday. Because the facility was tax-exempt during its years of state ownership, he said, the state wouldn’t miss a dime.
“There’s no loss because there’s never been any gain,” he said.
Tax abatement is a tool rarely used in Fergus Falls, Sievert said, though it’s not unusual elsewhere.
“It’s very common when you look at projects that are this large,” he said, adding, “Developers have indicated it could be as much as $80 million.”
“We’re trying to find some other ways to help the developers over there (in Fergus Falls),” said Sen. Dan Skogen (DFL-Hewitt), who helped created the Senate version of the bill with Sen. Tom Bakk (DFL-Cook).
The exemption is especially important considering threats from the state to demolish the RTC if no definite plan exists for the site by Dec. 31, Skogen said. A property tax exemption could be used to show Fergus Falls is making progress.
“At least if we have something in the pot, we can say, “Look, we have something in the pipeline, we’re moving forward,’” Skogen said.
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