Oct. 23, 2006

New manufacturing business proposed to get TIF

By Roz Kohls
Staff Writer

The Dassel City Council called for a public hearing Monday, Nov. 6, for a proposed tax increment financing, (TIF,) district for Custom Precision Technology at the regular council meeting last Monday.

The company, which manufactures glass and optical components, is upgrading the property at 800 Parker Ave., behind the city’s new municipal liquor store building. The property, previously a rear storage building for A+ Sports and Marine, was purchased from the city Sept. 18.

The financing will total about $32,000 and will not financially obligate the City of Dassel in any way. Marty Boerboom of Dassel, the owner of the company now located at 688 3rd St. E., Cokato, will pay taxes on the property. Because he will significantly upgrade the property by adding power, heating, air-conditioning, sanitary sewer and water, the taxes he pays will be more than what the 7,800 square-foot post and beam building was taxed before. This increment between tax amounts will be used to pay for the development of the property.

City Administrator Myles McGrath estimated Sept. 18 that the assessed value will raise to $28 per square foot from the current valuation of $3 per square foot.

The city and Boerboom contemplated using the JOBZ business subsidy instead, but the JOBZ program works better for businesses that intend to buy a lot of new machinery and have many employees.

Boerboom said Sept. 18 that his business location in Cokato is already overflowing with equipment to manufacture the glass components for medical, aerospace and vision customers. The maximum number of employees he will have is six, he said.

Custom Precision is better off with a TIF, McGrath said.

McGrath is currently getting waivers from the Dassel Cokato school district for the TIF, so the proposal will be ready for the Nov. 6 hearing.

Odds and ends

In other business, the council:

• held a public hearing on extending Farm-Rite Equipment’s JOBZ time extension to Sept. 30, 2007 from Oct. 1. After the hearing, the council approved the request. Originally, the extension requested was to April 2007, but the council added more time in case there is bad weather in the spring.

Tim Cox of Dassel, owner of Farm-Rite, said the first half of the 20,000-square-foot steel structure was scheduled to be placed on a slab at the site, 901 Parker Ave., Dassel, last week. The back half of the structure will be moved from Renville within the next 30 days, Cox said.

• heard a report from Bill Ward, administrator of Dassel Lakeside Community Home, that admissions for the nursing home were a record high, 74, but the census for long-term care was a record low since its 1978 expansion. This shows that the patients nursing homes serve now have changed to predominantly short-term cases, he said.

• scheduled the local canvassing board for Wednesday, Nov. 8, to formally accept the results of the local general election Tuesday, Nov. 7.

To access past and present minutes of city council meetings, go to the web site ci.dassel.mn.us or contact the city at (320) 275-2454.

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