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Pine County moves forward on tax‑abatement review for two four‑plex apartment buildings in Pine City
Summary
The Pine County Board authorized staff to prepare formal documents and hearings to consider a tax abatement request for construction of two four‑unit apartment buildings in Pine City that would total roughly $146,300 in abatements over 15 years, with the county’s portion estimated at about $63,600.
The Pine County Board agreed to proceed with drafting the formal documents and public‑hearing schedule for a tax‑abatement request for a Pine City apartment project after hearing details from the county’s economic development coordinator and the project developer. Project details Leslie Sauter (economic development coordinator) said Second and Third Apartments LLC applied for tax abatement for construction of two four‑unit rental buildings (eight units total) in Pine City. The developer provided a project estimate of about $1.2 million; full market value when complete was estimated at roughly $830,000. The requested total abatement for 15 years was about $146,300 (city share ~$82,700; county share ~$63,600). The county would continue to collect tax on the unimproved land value (~$125/year) while abating the increase tied to the improvements until the total abated amount was reached. Commission discussion and developer remarks Board members asked whether city utilities or other subsidy reduced project cost; the developer said utilities were stubbed to the lot and the developer paid hook‑up costs. Commissioners discussed timing — construction had already begun — and staff noted that tax abatement (as opposed to tax increment financing) can be applied to a project after construction has started; Ehlers (municipal finance consultant) had prepared the draft term sheet and would perform a five‑year “look back” review to confirm projections. Local approvals and next steps Sauter noted the Pine City Council approved the request 3–2 on Sept. 3 and the Pine County HRA/EDA endorsed it 4–1 on Aug. 27. The county’s participation was set to be contingent on city participation. Commissioners voted to instruct staff to work with Ehlers to prepare the formal abatement agreement and to schedule the required public hearings and City/County steps. Why it matters: the abatement is intended to make a workforce‑style rental project financially viable and to stimulate rental housing supply in Pine City; the county’s share, if fully used, would total roughly $63,600 over a 15‑year term under the draft plan. Ending: With the motion to proceed, staff will coordinate formal documents, public notices and Ehlers’ five‑year review; the board did not yet adopt the abatement agreement itself.
