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Ramsey County Commission denies 100% tax exemption request for Hubdi resort expansion
Summary
The Ramsey County Commission voted to deny a five-year, 100% property tax exemption requested by Hubdi Properties and Resort for renovations and expansion of an existing resort, after school-district and township representatives objected.
Ramsey County commissioners voted to deny a request from Hubdi Properties and Resort for a five-year, 100% property tax exemption for an expansion and renovation project at the resort. The commission’s motion to deny carried in roll call after extended discussion of whether the program is intended for new businesses.
The request was presented by John Hubdi, who said the new owners have increased occupancy, added employees and converted three residential houses to rental units that he said each generate about $80,000 to $90,000 in annual revenue. Hubdi told the commission his changes since acquiring the resort in January include expanding the marina and increasing year‑over‑year occupancy and revenue.
County staff member Beth (tax assessor) told commissioners the renovations Hubdi cited would increase taxable value by roughly $600,000 and, at current mill rates, equate to roughly $16,000–$17,000 in additional property tax revenue. Hubdi’s application listed approximately $128,000 in renovations.
School and township representatives opposed the full exemption. Corey Mar, representing the local school board, told the commission his board discussed the application and opposed a 100% exemption for five years because the school relies solely on property taxes and a full exemption would reduce its revenue. Al Gangel, representing the township, said his board had not met to take a formal position but suggested shorter or phased exemption terms as a compromise.
Commissioners questioned whether the county’s incentive program should be used for existing businesses that are being renovated rather than for new or major expansions. Commissioner discussion referenced recent public scrutiny at the state level of large tax exemptions and the principle that exemptions shift the tax burden to other taxpayers.
After discussion, a commissioner moved to deny the 100% five‑year property tax exemption for Hubdi Properties and Resort; the motion was seconded and carried. The commission did not approve any alternative exemption terms at the meeting.
The county clerk’s office will record the commission’s decision and Hubdi Properties may pursue other options or reapply with modified terms, but no subsequent action was taken at the meeting on this application.
