By MaryHelen Swanson

The Chisago County board last week set two public hearings for Sept. 6 to consider tax abatements.

A manufacturing company, St. Paul Engraving, wants to purchase two acres in the Stacy Ponds Business Park. The company currently is in Circle Pines.

The plan is to build a 7,700 square foot building and bring their five jobs to Chisago County, and possibly add more jobs in the future.

They request a tax abatement to help write-down the land and infrastructure costs to make the new construction affordable.

The countyís portion would be up to $42,000 ($4,200 annually for up to 10 years) and the city of Stacyís portion would be up to $28,000 or $2,800 a year up to 10 years.

The countyís HRA-EDA board is recommending approval.

The second tax abatement request comes from Chisago City which wants to use the abatement to assist with the debt payment on bonds for financing infrastructure improvements to develop an addition to their existing light manufacturing business park.

The funds would come from property taxes generated by a new manufacturing company, Eagle Eye Products, currently under construction in the existing industrial park. Eagle Eye would not receive any of the abatement.

The countyís portion is estimated to be $11,000 annually for a period not to exceed five years. Chisago Cityís portion is estimated at $7,000.

Currently, the property in question is tax exempt.

The HRA-EDA board recommends approval based on it meeting business subsidy criteria: it will increase or preserve the tax base, create or retain jobs or provide or help construct public facilities.

The public hearings will begin at 6:30 p.m.

Eng also offered a proposal to the county that would, in effect, bring a little cash to the county while assisting the HRA-EDA to assist the city of North Branch in purchasing 93 acres (Sederberg) to complete North Branchís new industrial park.

Under the proposal, the county would make a $1 million loan to the HRA-EDA which would, according to HRA-EDA director Chris Eng, save $10,300 in interest payments over going to a bank. Eng said this would be doing North Branch a favor in preserving land for future industrial development.

Commissioner Rick Olseen said it makes sense to preserve the strip of land along the freeway for this purpose, but he also noted that NBís ESSBY project is in trouble and may add an additional burden on the taxpayers.

Commissioner Mike Robinson said he couldnít vote for it because people in his district have waited for years for culverts and ditches and the county says there is no money. Now the county has a million dollars for North Branch, ìin a round about way,î he said.

Commissioner Ben Montzka said itís borrowing money to the EDA, not North Branch.

County treasurer Lee Olson said it would be a positive thing for everyone with the county potentially gaining $10,000 and it would be doing something to promote economic development.

Eng said the HRA-EDA can go to a bank, that it is not critical to make the loan with the county.

The issue will be reconsidered at the Aug. 16 meeting.

In other business last week, the county commissioners:

Appointed Rodney Dehmer (incumbent) to the Water Plan Team and, after considerable discussion, Jim Klinke to the planning commission to complete a three-year term to January of 2007.

There had been six applicants for the vacancy. Commissioner Robinson opposed the appointment saying he would rather have appointed someone from the northern part of the county.

Three applicants had been from the north. Currently there is only one PC member from the north, Craig Mold from Rush City. Six members are from south of North Branch.