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Chickasaw County defers vote on wind-energy urban renewal plan after questions about TIF boundaries

Chickasaw County Board of Supervisors · December 9, 2024
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Summary

Supervisors opened a public hearing on the Chickasaw County Wind Energy Center urban renewal plan but deferred final action after public concerns about district boundaries, required city consents and outstanding joint agreements; the attorney for bond counsel outlined how tax increment financing would work and what must be certified before the county can capture TIF revenue.

The Chickasaw County Board of Supervisors opened a public hearing Dec. 9 on the Chickasaw County Wind Energy Center Urban Renewal Plan but voted to defer adoption after questions about who would benefit from captured tax increment and missing joint agreements.

Bond counsel Jason told the board that an urban renewal plan must identify geographic boundaries and that the county can capture tax increment — the increase in taxable value above a frozen base — to pay for renewal projects. "That's what they can use for renewal projects," he said, explaining that certain levies, such as some debt-service and school instructional-levy components, are not eligible for capture.

Public commenters and several supervisors pressed the board on the renewal area’s concentration in the New Hampton School District and urged either expanding the area now or clarifying how future turbine phases would be added. Jay Jurin, a school official who spoke to the meeting, said the school supports the plan and disputed a common misconception that TIF capture would reduce the district’s guaranteed revenue; he said the district’s funding formula and levy allocations meant "there's really not a negative from the school's point".

Board members and counsel also discussed timing tied to certification of debt. Counsel explained that certifying debt before Dec. 1 of the certification year sets the frozen base value (the taxable valuation as of Jan. 1, 2024 in the explanation given), which affects what future increases can be captured. The attorney further noted that if a county urban renewal area lies within two miles of a city, that city must consent to county projects in the buffer; the county lacked all required joint consents and agreements to adopt the plan that day.

Given the outstanding joint agreements and to ensure all required notices and consents are in hand, the board voted to keep the hearing recordable but defer action on the resolution and ordinance to a date certain in early January and closed the hearing by roll call. County staff and counsel said the plan could be amended later to add additional areas or projects if and when new turbines or phases come online.

The board’s deferral leaves the plan’s boundaries and the initial scope of projects unresolved; supervisors instructed staff to obtain the remaining joint agreements and to return with the documentation requested before taking a final vote.