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New Hampton Transfer seeks county TIF help for $400K water-main to spur industrial expansion; supervisors ask for feasibility review
Summary
New Hampton Transfer & Storage requested county partnership — including potential TIF inclusion or urban-renewal mapping — to help fund a roughly $400,000 water-main extension that would enable expansion and additional warehouse capacity. Board members asked staff to meet with city and legal staff to clarify ownership, maintenance, annexation and funding options before committing county funds.
Jonas Sugarath, CEO of New Hampton Transfer & Storage, asked Chickasaw County supervisors April 13 to consider partnering on a water-main extension to support industrial expansion in the north corridor of New Hampton and to explore inclusion of affected parcels in an urban renewal (TIF) plan.
Jonas said the engineering estimate for phase two of the water-main loop — which would tie into a larger 14-inch main and provide an 8-inch feed to the north corridor — is "just over $400,000." He said the city has committed to cover 50% of the cost and proposed the county consider TIF capture to repay infrastructure investment as properties develop. Jonas told the board the new water service could support up to 225,000 square feet of additional warehouse space and an estimated $200,000 of annual taxable value if developments proceed.
Board members discussed legal and operational issues including ownership and maintenance of new water infrastructure, potential annexation by New Hampton, and whether the county should take responsibility for a water system that is fed from the city. One supervisor declared a conflict of interest because proposed hydrants would be close to his property and said he would not vote on related matters.
County staff and supervisors recommended a next step: meet with city staff (including the city engineer) and the county’s road/bond counsel to determine whether the project can be practically and legally structured before any financial commitment. A proposal to include these parcels in an urban renewal amendment was discussed; the board approved an engagement letter for counsel to work on the urban renewal amendment generally, but did not commit funds to the Jonas proposal at the April 13 meeting.
Next steps: board members and staff will arrange a meeting with the city and project proponents to clarify maintenance, annexation and legal frameworks and report back before the board considers financial support or formal TIF inclusion.
