Posted 3/28/01 Nelsonís tax abatement tabled: More time needed to consider abatement details By Jason Sileo The North Branch City Council postponed action on a proposed tax abatement agreement with Nelsonís Market during regular meeting talks March 25. Nelsonís Market has proposed the construction of a new grocery store on the west side of I-35 off Falcon Ave. in North Branch. City Finance Director Dave Stutelberg suggested the new store would be constructed at a cost of about $5 million, with $300,000 or so to be offset via the 15-year tax abatement plan. Tax abatement agreements are generally reserved for attracting new businesses to a given city, it was reported. Such agreements help developers offset some costs of construction (i.e. site grading and utility work, for example) with taxes returned to them. The site improvements paid for with the tax abatement monies, in turn, boost city revenue in the long term due to their increased valuation. The gain well outweighs the tax abatement loss for the city over the long haul, Stutelberg said. Stutelberg reported that Nelsonís stood to pay about $30,000 in city taxes per year once the new store is built, and that some $20,000 of that would be returned to Nelsonís via the abatement agreement to offset the cost of site improvements. During a public hearing for discussion of the terms of the proposal, Al Fanum of North Branch said he thought the 15-year abatement proposal was a bit much. Fanum said he shops at Nelsonís current North Branch store regularly and that the business appears to be doing just fine. He said he didnít understand why the taxpayers of North Branch were being asked ìto subsidize a private business.î Fanum said the $300,000 abatement was of little significance when considering a $5 million project. Fanum said the city should consider telling Nelsonís to ìcut back on some of the frills and weíll give you half of what you asked for.î In council discussion of the proposal, councilmember Amy Oehlers said she thought the 15-year term was a bit lengthy as well. Councilman Roger Else agreed. In the end it was decided that more information was needed before a vote could be made on the abatement proposals. That information will be discussed by the councilors in the coming weeks, with an amended abatement proposal likely in the future. At the close of the discussion, Rodney Lofquist thanked Fanum for his input on the abatement saying: ìYou asked some good questions, I appreciate that.î The council received a vote of favor from Jerry Torkelson of North Branch who said he had begun to feel comfortable and welcome at the meetings. He said he appreciated that, and appreciated seeing the council openly field questions and concerns from the public. In other business, the council: ï Opened bids and viewed preliminary assessment rolls for construction projects on 384th and 386th streets in the city. Public hearings for both projects are slated for April 23, prior to the councilís regular meeting. ï Approved a new zoning designation, I-3, for city industrial park properties and promptly changed I-2 properties to I-3 zoned properties. The new language sets forth guidelines for acceptable usage, design standards for structures, etc. ï Voted to eliminate ìprivate streetî designations entirely following a planning commission proposal to place strict limitations on the entities. Ordinance language had previously allowed for seven dwelling units to be located off private drives in the city; the planning commission had recommended that number be reduced to three. The councilors voted to disallow placement of any new private roads in the future. ï Accepted with regret the resignation of Dave Wilcox from the city public works department. ìIt will be difficult to replace him,î Administrator Moosey said. ©Post Review