Rock County grants New Vision 10-year abatement; five years for Martin Township

Rock County Commissioners and Martin Township officials granted the tax abatement request from New Vision Co-op at a joint public hearing April 5.
In a 3-2 vote, commissioners approved not collecting New Vision’s portion of property taxes ($5,222 annually) on the co-op’s proposed expansion project over the next 10 years. Commissioners Ron Boyenga and Ken Hoime were in favor of a five-year agreement and voted against the 10-year abatement.
Martin Township officials unanimously approved to forgo their tax portion ($2,164 annually) but only for a five-year period. (Township clerk Doug Bos was not at the meeting.)
No abatement was requested from the Hills-Beaver Creek School District.
During the public hearing one person voiced opposition toward granting another tax abatement to New Vision.
Rock County resident Gloria Rolfs said New Vision received an abatement of $18,500 annually five years ago to construct the new $16 million feed mill facility near Magnolia.
“I feel it is a little above and beyond asking taxpayers of Rock County for another abatement for an additional 10 years,” Rolfs said.
According to the first 2011 abatement agreement, New Vision promised to staff the new facility with 13 employees within the five-year abatement period.
New Vision’s Chief Executive Officer Frank McDowell answered questions at the public hearing and provided a business update on the Magnolia facility.
“We have 23 full-time employees. We have two job openings,” he said. “We have 60 percent more employees than we committed to and we did it in less than half the time we committed to … you have a good partner here … we do stuff right.”
In the Hills expansion plan, New Vision proposes expanding its current 10-person workforce to 16 within three years.
Unlike the Magnolia facility abatement, the Hills’ tax abatement is only on the expansion projects: a new 1.2 million bushel grain bin and 9,300-ton fertilizer plant. Cost of the expansion is estimated at $9.2 million.
The co-op would continue to pay taxes on its existing facilities.
The county would continue to receive $7,600 annually and the township would receive $3,178 according to the company’s 2016 tax statement.
The Magnolia abatement, which expires in 2017, increased employment opportunities in the county as well as increasing the local cash grain market and adding value to area agricultural products via livestock feed.
The added market value to the county’s industrial properties is viewed as a way to lessen the tax burden on the county’s agricultural land base.
“Anytime you can look to actual physical structures and commerce within the county to help share some of that tax burden, it’s a smart way to go,” said Commissioner Jody Reisch.
While the county is delaying some of its revenue for 10 years, Martin Township delayed its revenue for only five years due to planned upgrades and additional maintenance to 41st Street.
Currently 41st Street from County Road 53 to the Hills terminal is a gravel, seasonal 10-ton road. Because materials to and from the new fertilizer plant and grain bin will be transported by semitrailers, township officials are looking to upgrade six-tenths of a mile of 41st Street to a paved, year-round 10-ton road.
Currently, a bill has been introduced in the Minnesota Legislature for $350,000 to Martin Township for completion of the road project with state funds instead of local dollars.
Local legislators Sen. Bill Weber and Rep. Joe Schomacker co-authored legislation in mid-March.
County Administrator Kyle Oldre assisted Martin Township officials in applying for the allocation.
“They are fairly optimistic that they will be able to land that,” he said.