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Morrison County holds joint public hearing on TIF modification for Valley Hardwoods; no public speakers
Summary
County RDFA staff outlined a proposed modification to Tax Increment Financing District No. 3-5 for Valley Hardwoods to capture additional development value; the district’s budget capacity would rise from roughly $220,000 to about $440,000 over its life. No members of the public spoke during the hearing; staff and commissioners discussed contract protections and timing.
The Morrison County Board of Commissioners conducted a joint public hearing with the Rural Development Finance Authority to solicit input on a proposed modification to Tax Increment Financing (TIF) District No. 3-5 for Valley Hardwoods.
Shannon from the auditor‑treasurer’s office opened the hearing, described the process and outlined public-comment rules. Mr. Murray (RDFA consultant) told the board the TIF district was originally created last October to support a roughly 44,000-square-foot expansion; the developer now proposes a secondary expansion and requests a modification so the district can capture the new value.
"We're not changing the basis of it," Mr. Murray said, adding that the district would remain an economic development TIF with jobs-and-wages conditions. He said first incrementing is still scheduled for 2027 and the district would conclude in 2035, providing a nine‑year increment collection period. He told the board the modification increases projected budget capacity from roughly $220,000 to a little over $440,000 over the life of the district and that a separate subsidy agreement between RDFA and the developer will govern the terms, timing and performance requirements.
Commissioners asked how taxes and increment are captured, and what would happen if Valley Hardwoods defaulted or left the area. Mr. Murray explained that the developer pays taxes and the portion of new value captured in the increment is redirected to the RDFA to support the project; contracts contain default provisions and, if a project fails, the TIF district can be decertified.
The chair opened the public-comment period three times; no members of the public stepped forward and county staff reported no written or verbal correspondence had been received. The hearing was closed, and staff said the RDFA will next consider action on the modification.
The hearing record will be used to draft any findings; commissioners asked staff to confirm certification dates and the base market value used when the district was certified last October.
