County weighs adding Homeland Energy Solutions to urban renewal/TIF plan; directs paperwork

Chickasaw County supervisors discussed a proposed expansion by Homeland Energy Solutions and options for using urban renewal/TIF financing to support it.

Beth Eiler, representing Homeland Energy Solutions, and county bond counsel (Jason and Gina) told the board that three principal routes are available: leave the property taxable so all taxing entities get new revenues; form a separate TIF district with a negotiated development agreement returning some tax increment to the company; or add the property to the county's existing urban renewal plan and negotiate a development agreement there. Counsel said adding the parcel to an existing renewal plan would likely be less expensive than creating a separate district but would still require negotiation over the percentage and term of any tax-increment rebate.

Supervisors pressed for clarity on impacts to local taxing bodies, particularly school districts, and on timing. Counsel said taxes on new development would not reduce current budgets but would divert future growth to the TIF arrangement; the school district could receive a smaller share of the incremental revenues under some agreements. Counsel and staff cited a December 9 deadline for paperwork if the county wanted to include the parcel in the renewal-plan timeline.

After discussion about negotiating reimbursement for county costs and whether roads or traffic mitigation should be included as part of a development agreement, a supervisor moved to direct the county assessor to obtain a legal description and to have bond attorneys prepare documents to consider adding the Homeland Energy parcel into the county's urban renewal plan. The board gave direction to staff to prepare paperwork for that third option; no final TIF agreement was approved at the meeting.

Next steps: staff will draft the legal description and development-agreement materials for a future public hearing and formal vote.