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Morrison County Board approves nine-year TIF district to support Valley Hardwoods expansion
Summary
After a joint public hearing with RDFA that drew no public comment, the Morrison County Board voted 3–2 on Oct. 7 to create Tax Increment Financing District No. 3‑5 to assist Valley Hardwoods’ roughly $1.2 million expansion; RDFA will administer the district through Dec. 31, 2035.
The Morrison County Board of Commissioners voted on Oct. 7, 2025, to establish Tax Increment Financing (TIF) District No. 3‑5 to support an expansion at Valley Hardwoods, a manufacturing site located outside any municipal boundary. The board approved the district after a joint public hearing with the Morrison County RDFA that produced no public testimony.
Carol Anderson of Morrison County community development told the board that owner Peter Watuki (identified in the hearing) seeks the TIF to help finance an expansion; she said the owner used TIF previously and completed that earlier project on schedule. “He has used TIF once years before when he did his major building. Everything paid off on time, no problems,” Anderson said. The project cost was described in the hearing as approximately $1.2 million.
Jason Murray (RDFA) described the proposal as an economic-development TIF district with a nine-year term. “If created, this TIF district would run through 2035 and would automatically decertify on 12/31/2035 upon completion of the TIF district,” Murray said, adding that RDFA would be the administering body.
Shannon Floyd, Auditor-Treasurer, presented a resolution citing Minnesota statutes authorizing TIF districts. The resolution referenced Minnesota Statutes Section 469.124 through 469.134 and sections 469.1742 through 469.1794 as the statutory basis for the action.
Board discussion focused on how TIF postpones collection of the incremental taxes during the TIF period and how, once decertified, the tax base increases permanently. Commissioners and staff provided historical numbers for a prior Watuki project: Shannon Floyd noted that before the first district the parcel’s taxes were about $4,099 and that after construction the taxable value produced roughly $19,500; since decertification in 2017 the county has collected $20,000–$25,000 annually on that parcel. Floyd said the current expansion is projected to increase annual taxes by a further ~$24,750 over the TIF period and to produce roughly $50,000 a year in property taxes after the TIF ends, although she noted those numbers are estimates.
The RDFA voted earlier in the meeting to recommend approval; the county board then took a final roll-call vote. The roll call on the county motion returned: Commissioner Blaine, Aye; Commissioner Casper, Nay; Commissioner Winter, Aye; Commissioner Moran, Nay; Commissioner Myers, Aye. Motion carried, 3–2. The resolution authorizes creation of TIF District No. 3‑5 within Municipal Development District No. 3 and adopts the TIF plan as presented. RDFA will administer the district and rebate the increment on a pay-as-you-go basis to the developer in accordance with the plan.
Why it matters: The board’s approval uses a county-level TIF (rarely used outside municipal limits) to support manufacturing expansion in the county. Commissioners said the tool is intended to encourage local investment that increases the tax base after the TIF term ends.
Procedural note: The county held a public hearing as required, received no public testimony, received the RDFA recommendation, and then approved the establishing resolution by roll call.
Implementation notes: The district term is scheduled to run through Dec. 31, 2035, and RDFA will administer the rebate payments under the plan. Commissioners noted the county’s recourse relies on property-tax processes should a project fail or a business face foreclosure; outstanding property taxes must be satisfied in those processes.
