Sept. 25, 2006

Dassel sells rear potion of new liquor store complex

By Roz Kohls
Staff Writer

The City of Dassel sold a portion of its new municipal liquor store property last Monday to Marty and Pam Boerboom of Dassel for $200,000.

The Boerbooms will use the rear area of the former A+ Sports and Marine building for their manufacturing company, Custom Precision Technology Inc., now at 688 3rd St. E., Cokato.

Custom Precision Technology manufactures glass and optical components, such as the prisms used in grocery store scanners, Marty Boerboom told the council.

Not only will the Boerboom purchase make the $600,000 liquor store complex less expensive for the city, but it will return the 7,800 square-foot post and beam building and surrounding property to the tax rolls, said City Administrator Myles McGrath at the city council meeting last Monday.

The Boerbooms also will improve the building to manufacturing grade with power, heating and air conditioning, water and sewer. The assessed value will raise to $28 to $32 per square foot from the current valuation of $3 to $5 per square foot, McGrath said.

The Boerbooms have been in the Dassel Cokato area since 1980, Boerboom said. His business location in Cokato is overflowing with equipment to manufacture the glass components for medical, aerospace and vision customers.

“I need to get a bigger building,” he said.

Boerboom estimated he will need two-thirds of the building in Dassel for production, polishing and inspection, and the remaining third for offices, lunch room, rest rooms and other uses.

McGrath said Custom Precision will use the current driveway and get an easement to the property in the back to access the building. There is a 100-foot wide strip between the back building and the new liquor store building. The property line will run right down the middle of the strip, leaving a 25-foot wide strip against both buildings for parking, he said.

The Boerbooms also could move the fence that extends north to the new liquor store building, south for security of the manufacturing plant, McGrath said.

The council also briefly discussed whether to finance part of the development with tax increment financing but didn’t plan any details for it. The maximum number of employees Custom Precision has now is six, Boerboom said.

The property will have access to water from stubs put in for the Haekenkamp development to the east of the new liquor store building.

The council also approved the final business subsidy and development agreement with Paul Haekenkamp of Dassel for the property where the 4,000-square-foot Meeker Memorial Clinic is being constructed. As Haekenkamp pays property taxes on the land where the clinic is, the increment above what he paid before the clinic was constructed will be used to pay for development of the property, up to $51,686, according to the agreement.

The council also adopted a business subsidy policy after it held a public hearing on it last Monday. The public purpose requirements for business subsidies will be job creation, job preservation, enhancement of public utilities and creation of a tax base. Creation of a tax base shall not be the sole purpose of the subsidy, however, according to the policy.

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