March 11th Commissioners Meeting

Draft Tax Abatement Policy


I have been "observing" the Commissioners since 1994 and, for most of that time, there was never any consideration of tax abatements for businesses coming into the County. Familiar with a company named MCLANE? Most people living in Northfield would recognize the name. When they decided to locate in Northfield, they came before the Commissioners confident in their ability to get a tax abatement at the County level because they had successfully acquired it from the city of Northfield. They were turned down flat. Dan Minnick told them that Rice County had no precedent for tax abatement. He added that if they wanted to locate here, they would have to operate under the same conditions as every other business in the County. (This may be the only time that Minnick and I ever saw eye-to-eye on any issue and, if he were to read this blog, it would probably be as distasteful for him to read that sentence as it is for me to write it.)

I cannot say the Board still operates by those rules since Jim Brown became a Commissioner. After ramming the Economic Development District through with promises that this would cure our rising taxes by providing a larger tax base, Brown has been sniffing around every tax abatement opportunity he comes across. JOBZ in Faribault? Can Rice County find some way to force a fit for the EDD? No? Then it must be Tax Increment Financing. Is there no way Rice County can make it apply? No? Not being the kind of guy who can take "no" for an answer where his reputation is concerned, Brown pushed for a tax abatement policy and, voila, the first draft appeared today. Too bad he was absent for his big moment in the sun.

State Statutes allow tax abatements for up to 10% of the current levy. The Rice County 2008 levy is $19,093,972 and 10% of that would be $1,909,397. However, the Commissioners opted to go with 5% of the levy, $954,698, because the amount is cumulative for 10 years. Now, whether that means that it is incremental for each business for 10 years or that it goes into the general pool (so to speak) is not made clear in the policy.
There are all sorts of evaluation criteria, annual reporting and recapture of abatement language. Most of it does not seem too bad but there are two questions that are nagging and will not go away.

1. The Economic Development District was touted as a cure-all for our tax base woes so, when the policy lists "increase OR preserve the tax base" under its minimum requirements, how does "preserve tax base" cure tax woes for Rice County residents. After all this is an economically precarious time and the abatement for each business will last for at least 10 years. And, what is to keep those businesses in the County at the end of those ten years. After all, their building is aging and, if they are having trouble with employees, what better way to rid themselves of those problems than by packing up and leaving?
2. The companies granted tax abatements are supposed to file annual reports and there is always the possibility of abatement recapture if the requirements for having obtained the abatement are not met. BUT, who is going to be monitoring these companies? Is it Kuennen, head of the Economic Development Department? That is certainly not spelled out in the policy. Also, this is a political process as is everything that comes before the Commissioners. I have "observed" Jim Brown going to bat for individuals and companies that should be fined, yet he has patted them on the back for doing the best they could. Is there any doubt that he will do this for any of the companies that file for tax abatements in his Economic Development District?

A public hearing will be held before the Commissioners once the draft is cleaned up. Keep it in mind, request a copy of the policy and go to the hearing. Make the Commissioners hear your concerns!

2,000 Animal Units Will Be New Feedlot Cap

The review and changes to the Rice County Feedlot Ordinance were initiated by the Planning and Zoning Department last year to more closely align the County ordinance with the State ordinance. It was expected that this would make the County ordinance easier and less expensive to administrate. Of Course, one of the most important changes would be in the maximum animal units (a.u.) allowed in any feedlot operation. The State does not have an animal unit cap and, there is a difference in the way animal units are calculated between the two ordinances with the State's definition being more lenient. However, being the fearless leaders that they are, the Commissioners decided to part with the State Ordinance on the issue of a.u. caps.

The numbers 1,500, 2,000 and 3,000 animal units were kicked around but after "careful" consideration during the deliberations, three of the Commissioners came to the conclusion that the maximum number of animal units within the county should be capped at 2,000 a.u. Although a vote cannot be taken until the language is cleaned up and the discussed additions to the Feedlot Ordinance are made, Commissioners Plaisance, Gillen and Brown have declared their intentions to vote for the 2,000 a.u. cap.

It is no surprise to anyone who follows the Commissioners Meetings that Plaisance and Gillen would vote for the cap, after all, Gillen is a dairy farmer and Plaisance has animal farming in his background. However, Brown's reason for voting for it took those of us in the audience by surprise. He stated that by adopting the State definition of a.u.s, a modest increase in actual animal numbers would accrue to all farmers except the dairy farmer. His gobbledygook reasoning was that the dairy cow was lighter than the steer which is the foundation from which all the manure output of the other animals is calculated. He said the "differentiation between species" was inconsistent and, by going with the higher 2,000 a.u. number, the dairy farmers would also benefit with a modest increase in numbers of animals.

Commissioners Bauer and Malecha stated that they intended to vote against the proposed cap number because there was no support for the change in their districts. They were then subjected to considerable pressure from the other Commissioners who lionized the importance of natural fertilizer in this day and age, adding that it would soon be helping to power energy plants. However, Bauer and Malecha stood their ground for the sake of their constituents. Good for them! We should all be so lucky to have Commissioners who represent us that well.

Commissioners speak:

"If we didn't have no livestock in Rice County, we wouldn't have any natural manure at all!" Milt Plaisance

"I'm sticking with 1,500 a.u. based on calls and e-mails I have received." Galen Malecha

"I asked for support, but I can't get any support for it in my district." Steve Bauer

"The NaySayers are not well informed." Jim Brown

"I am standing behind what I proposed." Jake Gillen

Hazardous Waste Facility Expansion

February 5, 2008 Commissioners Meeting


Are you one of Rice County's residents forced to fight for a parking space at the Hazardous Waste Facility? Or, are the days and hours of the facility inconvenient for you? Well, if so, help is on the way! (Maybe later than sooner - but, hey - this is county government we're talking about.)

Citing the growing popularity of the Hazardous Waste program, increasing storage limitations and future safety issues, Mike Cook, director of the Solid Waste Department, asked the County Board's permission to have an architect draft plans for the facility's expansion.

Currently, the facility is responsible for the Ag Pesticide Program and the Very Small Quantity Generator (VSQG) program as well as being the sponsor for Steele and Waseca counties. With so much space being required for each program, Cook expressed concern that if the facility did not expand, further restrictions on hours or discontinued programs could result.

The request was supported by a vote of 4-0, Jake Gillen being absent.

Commissioner speaks:

"I think that we will be in the hazardous waste business for a long time." Milt Plaisance

There is an ongoing discussion between the County and Bridgewater Township about the landfill and hazardous waste disposal facility which is located in that township. I was able to reach Bridgewater Township Supervisor, Leif Knecht, for a comment:

"The handling of our waste is very important and Bridgewater Township has been accepting waste from the whole County going on 35 years. I am encouraged that the County is starting to look at longer range solutions and I am encouraged that Bridgewater, through the use of the Hosting Fee provided for in the Minnesota Statutes, can make preparations for the day when funding is needed to take care of the problems 3 million yards of deposited waste can generate. Further, it is a good thing that both the County and Township are addressing the issue."

Other Solid Waste Topics:

1) Commissioners expressed interest in going to a "single sorter" processing for recyclables. This means all recyclables can be set out for haulers, mixed in one container, and they will be sorted at the Recycling Facility. Evidence from other recyling facilites shows this to be the most popular option and is credited with encouraging more recycling. This, in turn, extends the life of landfills.

2) The IRS turned down Rice County's request for a 0% interest federal bond to construct a wind generator. Most of the money went to smaller turbines in the $2 Million range while Rice County would require $3 Million. This will not stop future efforts to establish wind power at the landfill.

3) Jake Gillen and Milt Plaisance will be Commissioner-Delegates in a multi-county initiative to determine future possibilities of waste disposal. Some options that may be investigated are composting and incineration of waste.

Rice County Voting Machines

Curious about Rice County's voting machines? I was. All of those scary stories about skewed election results from Florida in 2000 where endless debates on "chads" took place and from Ohio in 2004 where the uproar centered on hacking interference with touch screen voting machines had made me a little edgy. I wanted to know what was what in Rice County, so I asked Rice County Auditor-Treasurer, Fran Windschitl about the Rice County voting machines.

Rice County uses the Election Systems and Software Model 100 which is installed in every County precinct. The actual voting process is done manually. Voters mark the oval next to their candidate of choice. From the voter's hand, it goes through a scanner which checks for mismarks (e.g. four votes when asked for one) or ovals left blank.

There is also an electronic alternative which any voter may use, but is particularly helpful to voters with physical challenges. The Auto Mark is a glorified electronic pen or keypad. It has a headset function, a blow tube function and a touch screen function. Fran says few voters use the Auto Mark, but for those who do, it tells you how you voted and you are able to inspect your vote.

Once the ballots are scanned, the scanner tallies the votes and audits the precincts. There are random tests for scanner accuracy and any candidate is free to ask for a recount. If it is within a certain margin of error, the recount is free. If it is less, there is a fee for the recount. In the past, recounts have proven the first count to be 100% accurate.

I don't know if that eased your mind, but it helped me a lot. Of course, the main way to make your vote count for your chosen candidate is to get out and vote, and vote correctly. If you find yourself using the Auto Mark, make sure that you inspect your vote before you put it through the scanner

Welcome!

Some of you may remember my website of a few years ago. Not many, I am certain, since so few site visitors were noted. However, it's a new day! Blogging sites abound and now that I have one, I hope to engender more interest in the weekly Rice County Commissioner Meetings. Remember, they affect us all, whether you are aware of it or not.

Unfortunately, the average Rice County citizen is not aware of County government until they receive a letter from the County informing them that something they don't want in the neighborhood has made plans to move next door to them. By then, it is usually too late to do much about it.

So, come join me for the wonderful, whimisical world of the Rice County Commissioners. It may well glaze, daze and baffle you but it will certainly amaze you!

January 22, 2008 Meeting

The main topic of discussion focused on the rezoning of Kielmeyer Construction's gravel pit in Nerstrand. This site is adjacent to the Nerstrand Woods which contains substantial remnants of the original Big Woods and is considered a County treasure. The request is to rezone the land from Agricultural to Limited Industrial. Although this is a rezoning item, the rezoning is being requested by a company that will use the site to store fire works once the rezoning is accomplished.

Why use a gravel pit for something other than mining sand and gravel, you might ask. The simple answer is that the pit is played out and this company is still looking for a way to profit from it.

But there is a history with gravel pits of this type. This gravel pit along with several others was in operation prior to the adoption of the more recent Zoning Ordinances. Under the new Zoning Ordinances, owners and/or operators of gravel pits must put up a bond for pit rehabilitation. Since this pit was already in operation, it was "grandfathered in" - given a free pass around the new ordinances. They don't have to put up a bond for rehabilitation and they don't have to cover the empty pit. Many of us have wondered what would happen when these pits were played out. I just don't think that we ever saw this particular scenario coming. The main problem is that it is in a historic, environmental area, isolated from services that might ensure safety to the woods and residents and, has rightly been labeled by those residents as spot zoning.

This Agenda item had already been denied by the Planning Commission based on four findings:

1) The site is within the statuary boundaries of Big Woods State Park.

2) The site is inappropriately isolated from other Limited Industrial areas.

3) Re-zoning would allow many industrial type uses which may not be compatible with the surrounding area.

4) Other land is available in Rice County appropriate for this use without rezoning this parcel.

Of course, not all of the Commissioners agreed with these findings. One major concern revolved around the idea that this was a prime example of spot zoning (dropping a small and different type of zoning area into a larger different type of zone - frequently done in some places to accommodate a particular land owner).

When asked by the Chair, Steve Bauer, for a legal opinion, County Attorney, Paul Beaumaster, said that it would take two weeks. The applicants waived the 60 day rule, so the hearing was tabled until February 12.

The Commissioners Speak:

"This site is the best place of anywhere in the County. It's in my district and I don't have a problem with it......It cannot be located in town, it has to be located in an isolated area. Now, he's (Kielmeyer) got this gravel pit all used up and he's got the chance to move on and I applaud him for that." Jake Gillen

"What the Planning Commission learned is that rezoning is broader than the individual applicant." Jim Brown (Brown asked Trent McCorkell to list other uses for Limited Industrial. They include adult entertainment, contractors yards, landfills and warehousing.)

"This is the perfect place for it, but it has to be rezoned. We have to come up with something to do with gravel pits after they're empty." Milt Plaisance

"I'm not one for turning business away but we have to think about bringing in businesses with (good) quality of life. We have to think about safety issues. Does the Nerstrand Fire Department, even with the back up of Faribault, have the ability to deal with it?" Galen Malecha

"We are setting a dangerous precedent. We don't want to see everyone come in with this plan to fix abandoned gravel pits." Steve Bauer

Well, it appears at least three of the Commissioners are deep thinkers. Remember folks, these people represent you! Call them, study their votes and remember them when you vote next time.