DETROIT LAKES — More details have emerged about a power equipment sales, parts and service facility that the company hopes to open by fall at 29075 Route 10 on the southeast side of Detroit Lakes.
The Tax Increment Financing (TIF) application was reviewed by the Detroit Lakes Development Authority at its monthly meeting on Tuesday, May 7th. The business was identified in the filing as QF5, owned by Todd Doge of Shakopee, Minnesota.
The application states the 15,000-square-foot facility will be constructed of precast concrete and is expected to be constructed in the summer of 2024 and completed by the fall. The business has the potential to employ up to 12 full-time workers and annual sales are estimated at between $4 million and $6 million, according to information provided to development officials.
I purchased two plots of land for business purposes. According to the Becker County parcel search, the two parcels were combined (030075000)
and 030074000
) It's about 12 acres. The site for the new business was designated as the northern portion of the property furthest from the intersection of Highway 10 and his 290th Street.
Renderings in the packet showed the primary access to the commercial property would be from Highway 10, with a right-turn lane in the eastbound lane. The second entry/exit point will be along 290th Street. According to the plan, there will be 46 parking spaces for customers, two of which are designated for people with disabilities.
“The applicant anticipates approximately 4 to 10 visitors at any given time during normal business hours during the off-season and 10 to 25 visitors during normal business hours during the peak season,” the application states. I am.
The business has the potential to employ up to 12 full-time workers and has estimated annual sales of $4 million to $6 million, according to information provided to development officials.
The annexation of the land from Burlington Township began in February with a Planning Commission public hearing. The commission approved the annexation. The proposal was sent to the City Council, which approved the annexation in March and designated it a B-3 zone, which allows commercial and service activities that are primarily or dependent on automobiles. B-3 districts also allow retail and hospitality, gas stations, food-related establishments, hotels, and offices. Burlington Township would receive five years of tax money. Starting in 2025 and ending in 2029, his annual tax bill will be approximately $610.
TIF considers redeveloping blighted property
QF5 asked development authorities to consider providing tax increment financing for new businesses.
“The TIF plan requires approval by both the Detroit Lakes Development Authority and the City Council,” Lemmen explained in an email after the meeting. “Each organization must hold a public hearing. The date for the public hearing has not yet been determined.”
Wesbite from the Minnesota State Comptroller's Office explains that TIF is “a financing vehicle designed to support local economic development, redevelopment, and housing development that would otherwise not be possible.” ing.
“TIF is not a tax deduction. Taxes are paid based on the full taxable value,” the auditor information states.
In a phone interview, Lemmen explained that if a TIF application is approved, companies will continue to pay taxes based on the fair market value of what's on the property. These taxes are distributed among all taxable entities.
“When a new project is built, they pay the full amount of taxes on that new project,” Lemen explained.
If the county distributes taxes to the city, the TIF agreement requires the city to return 90% of the taxes to the developer until the agreed-upon amount is paid. (QF5 asked the development authority to consider providing a TIF in the amount of $623,570.) Once the agreement is executed, the TIF certification will be revoked and the Similarly, tax collection will begin.
Lemmen explained that companies and developers sometimes seek TIFs to “make their projects more affordable.”
The QF5 TIF application states that “upgrade funding will be used to assist the applicant with the cost of asbestos remediation in existing structures on the site” (which must be done prior to demolition), and that “the Demolition and grading.” and any necessary excavation work…extension of city water and sewer services to the site and any buildings constructed on the site. ”