Rice County provides the following economic development incentives, and is committed to meeting the financial and tax needs of our business partners. This includes finding creative solutions to financial needs, helping to identify resources and understanding the role of tax incentives in determining business location and growth needs.
To stimulate private sector investment in facilities and equipment in order to create/retain jobs for local residents and to upgrade facilities to maintain competitiveness and/or boost productivity; and provide affordable loans for expansion and/or rehabilitation of commercial and industrial buildings in order to maintain the commercial and industrial viability of Rice County and its communities.
Tax abatement encourages private development projects by allowing the rebate of property taxes to the property owner, reallocating the taxes to pay for public infrastructure costs or deferring the property taxes and rebating the interest penalty.
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The Board of Commissioners has authorized a 10-year tax abatement for a Minneapolis company planning a move to the northern portion of Rice County.
Following a required public hearing Dec. 13, the board authorized an abatement of about $105,000 in taxes over the duration of the agreement.
The company, Scan Air Filter, provides heating, ventilation and air conditioning services for industrial clients. It’s currently located southeast of downtown Minneapolis, but plans to build a new $1.65 million facility in the Lonsdale Business Park off Hwy. 19.
The 2.56-acre parcel has a valuation of $112,000, according to Rice County records.
“Lonsdale is a more desirable location,” Scan VP Operations Pete Johnson said of the move during the board’s Nov. 15 meeting.
Initially, the facility will employ 11 people, but may add another three full-time equivalent positions with a $17 per hour wage.
While the city of Lonsdale is not planning to abate its share of taxes, the city will subsidize about $284,000 in land acquisition and infrastructure costs.
The proposed abatement agreement is structured so 100% of the Rice County taxes will be abated for the first five years, beginning in 2023. The abatement will then be incrementally reduced for the next five.
Tax abatement is one of several tools utilized by local governments, including counties, to attract new businesses or assist existing employers looking to expand.
Kathy FeldbruggeEconomic Development Coordinator
Government Services Building
320 Third St. NW
Faribault, MN 55021
Government Services Building 320 Third St. NW Faribault MN 55021