Kandiyohi County approves tax abatement for MinnWest Technology Campus, but not for 100%

Shelby Lindrud, West Central Tribune, Willmar, Minn.
·2 min read

Jan. 19—WILLMAR — MinnWest Technology Campus was successful in obtaining a new tax abatement from Kandiyohi County, but not at the level initially requested.

The Kandiyohi County Board of Commissioners, at its meeting Tuesday, following a public hearing with no public comment, approved a 10-year tax abatement that will total approximately $139,424. The commissioners passed a step-down abatement, where the amount of taxes abated reduces as the years pass. One hundred percent of taxes will be abated in years 1 to 4, 70% in years 5 to 7 and 40% in years 8 to 10. The abatement will run from 2024 through 2033.

An abatement reduces the amount of taxes a property owner pays on the impacted property for a set amount of time. In the MinnWest abatement, the campus will continue paying the 2021/2022 base tax capacity on three additional buildings, approximately $61,000, in the old state hospital site, but the increased taxes from upgrading those three buildings will be reduced for a decade.

The technology campus had hoped for a 100% abatement worth over $190,000, about five% of the total project cost to renovate the building. Commissioner Roger Imdieke said most tax abatements in the county are of the step-down variety, and only the previous two for MinnWest were 100%.

"In fairness to all other applicants, I have to support the step-down," Imdieke said.

The resolution passed unanimously, though Commissioner Steve Gardner said he would rather the 100% abatement pass instead.

"I think the message we are sending, not just to MinnWest, to anybody else who wants to come in with quality ideas and quality jobs, that we would not fully fund what is a reasonable request over time," Gardner said. "I'm concerned of the precedent that sets."

MinnWest and the Kandiyohi County and City of Willmar Economic Development Commission first made the

abatement request in December

, though work had been going on for some time previous.

"We have been working over the past several months to support this application," said Sarah Swedburg, EDC Business Development manager.

President of MinnWest and Nova-Tech Jim Sieben thanked the county for all its support of the years.

"I want to thank the county for all you have already done, for being a part of helping MinnWest Technology Campus grow and go into what it is today," Sieben said.

Going forward the EDC and MinnWest will now request a similar abatement from both the city of Willmar and Willmar Public Schools, both of whom participated in past abatements for MinnWest.

"We wanted to start with the county," Swedburg said.