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Commission tables US Magnesium tax‑payment agreement after members seek tighter terms
Summary
Staff presented a draft payment agreement with US Magnesium LLC for delinquent property taxes, estimated at roughly $6–6.8 million; the commission tabled the draft pending tighter contract language.
County staff and counsel discussed a proposed payment agreement with US Magnesium LLC, which owed several million dollars in delinquent property taxes. Mike Jensen (county staff) summarized the company’s proposal and the county‑draft contract at the June 3 meeting.
Jensen said US Magnesium had agreed to make $50,000 monthly payments and that the county had received May’s $50,000 payment. He reported the delinquent tax total at the time of discussion as roughly $6.8 million (the staff presentation showed earlier figures of $6.3 million as of a prior date and $6.8 million as of May 1). Jensen described the county’s willingness to accept monthly payments to avoid tax‑sale possession while the company pursues reorganization and revenue options.
Commission concerns and requested revisions: Several commissioners urged clearer, time‑limited contract language. One council member asked that the agreement be tied explicitly to the taxes that were delinquent as of a stated date and require the company to remain current on future tax obligations. Commissioners also asked for language describing remedies and the county’s position if US Magnesium defaults.
Legal and practical points raised during the discussion included: the county’s general practice for delinquent taxes (property goes to sale and may revert to the county if unsold), the potential environmental cleanup liability if the county ever takes title to industrial property, and state tax commission rules on interest (mentioned as a statutory range, historically between 7% and 10%). Staff said they had talked with state agencies and DNR about potential cleanup exposure but noted that if a private buyer purchases the property at tax sale, the county would not retain ownership or cleanup liability.
Motion and outcome: After discussing requested contract edits, the commission voted to table the item and directed staff to revise the draft using the council’s suggested language. Councilman Hoffman moved to table; Councilman Wardle seconded. The motion to table carried unanimously.
Ending: Staff will return with a revised agreement that narrows covered tax years, requires current tax payments going forward, and clarifies default remedies and interest terms prior to any authorization for the county manager to sign.
