Posted: 4/18/06
City approves tax abatement for Dollar General
By Jane Palen
Managing Editor
The city council agreed to a tax abatement for a Dollar General store planned for the Ma Cal Development, north of the current Alco discount store.
The Dollar General Store was represented by Taylor Heard of the Hutton Partners. He was accompanied by Caledonia Economic Development Director Joyce Iverson.
The abatement requested from the city was a maximum of $12,000 over a nine-year period. When a business is granted a tax abatement, it mean that a portion of the increase in taxes that result from improvements made to the property will be forgiven. In years 1-6 of the abatement, 75 percent of the increase in taxes will be abated and in the last three years, that figure is 50 percent.
The value of the 10,500 sq. ft. Dollar General Store is estimated at $352,000, according to Heard. He told the council that the company expects to hire two to three managerial positions at an estimated wage of $20,000/yearly, and between three and six sales positions at around $6 per hour.
The amount of the abatement is based on one-half the cost of the right turn lane from the northbound lane of Highway 44/76 that the Minnesota Department of Transportation is requiring. The amount is split between the county and the city. The school district was not asked to abate its portion of the taxes.
Construction is expected to begin this spring.
The unanimous vote in favor of the abatement was taken following a public hearing on the matter.
Hutton Partners is based in Chattanooga, Tennessee.
Condo request denied
The city also held a public meeting to consider a conditional use permit for Dean Foltz and Norman Snodgrass, who asked the city for permission to construct two duplexes, each 51 x 80, which would face each other rather than face the street in the South Winnebago Estates subdivision. Each 1,248 sq. ft. unit would be sold separately. The owners would share a 15-ft. wide driveway that connects to the street. The drive would then branch off to the two units.
Zoning administrator Mike Gerardy said at the public hearing that the cityís ordinance calls for buildings to be built facing the street.
ìItís up to the council to decide if they want to make an exception,î he said.
When the regular meeting reconvened, the council voted unanimously to deny the request.
Increase expected in wholesale electrical rates
City clerk administrator Robert Nelson shared information that he received from Tri-County Electric Cooperative regarding wholesale electrical rates. The cityís contract with Tri-County Electric, which expires April 30, limited the amount the rates were allowed to increase. Tri-County will be passing along rate increases to the city, and city residents can expect to see an increase in their electrical rates beginning with the June billing.
Several factors have contributed to the anticipated increase in rates, including a 100 percent increase in rail rates and coal; aging power plants, a growth in electrical consumption and rising interest rates.
In December, the city agreed to participate in a rate analysis to identify ways in which it can help keep electrical consumption down.
Status change approved for animal control officer
The council also agreed to designate animal control officer Mike Gavin as a city employee so that he would be eligible for Workers Compensation. The council also agreed to keep his wages at $300 per month, and pay Gavin $75 per month rent for use of his building and to reimburse him for his expenses.
In other business, the city:
ï approved a bid of .89/lb. from B&D Seal coating, Caledonia, for crack sealing;
ï agreed to extend spring clean-up for one week (until April 30);
ï discussed part of the wellhead protection plan which calls for properties within 300 ft. of city water service to be allowed to connect to city water rather than drill a private well;
ï approved up to $3,000 for appraisals of three properties that the city is interested in purchasing for storage of electrical vehicles and equipment;
ï approved the purchase of an ad in Minnesota Trails magazine for $162;
ï agreed to consider a request from Jennifer Guinan of the Minnesota Alliance for Safe Highways, who asked the city to pass a resolution opposing larger and heavier trucks on Minnesota highways;
ï approved a Small Cities Development Program Commercial Loan for Steve and Kathy Nelson in the amount of $7,039. The entire project will cost $11,732, with the balance of the amount provided by private funds. Specifics of the project were not given.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com