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Pine County approves 15-year tax abatement for eight-unit Pine City housing project
Summary
The Pine County Board approved Resolution 2025-37 to authorize a 15-year tax-abatement agreement for Second and Third Apartments LLC (two four-plex buildings, eight units) in Pine City; the county’s estimated contribution is about $63,600 with the city contributing about $82,700 over 15 years.
The Pine County Board on Wednesday approved a tax-abatement agreement to support a small housing development in Pine City. The proposal from Second and Third Apartments LLC would build two four-plex buildings, creating eight new rental units.
Leslie Sauter, the county’s economic development coordinator, told commissioners the county’s contribution over 15 years would be about $63,600 and the city’s share about $82,700. She said the abatement helps cover the gap between development costs and property-tax value while a project ramps up to cash flow. “The reason behind the request is that the total cost of development is beyond what the property tax value would be,” Sauter said during her presentation.
The board opened a public hearing, heard no public testimony and closed it before voting. Commissioner Holland moved to adopt Resolution 2025-37 authorizing the property-tax abatements and the related agreement; Commissioner Nelson seconded and the motion passed on a voice vote.
Why it matters: local tax abatements are a commonly used tool to incentivize small-scale housing in rural communities where development margins can be tight. The record shows the board considered the term sheet presented in September and concluded that this abatement aligns with prior housing abatements approved for similar projects.
The agreement requires the board chair and county administrator to sign the final documents. No additional financial offsets or amendments were specified in the board’s motion; details and the final signed agreement will be filed with county records.
