Pelican Rapids approves property tax abatement program for new homes

The Pelican Rapids City Council on Jan. 28 adopted Resolution 20251 to authorize a property tax abatement program aimed at encouraging new residential construction.

Council member Danielle explained the program during a public hearing, saying it targets new homebuilders and was coordinated with county efforts to spur building. "It is for new property owners/new builds ... it offers them, I think, up to $5,000 over five years," Danielle said, and noted the city’s practice has been to reimburse the amount over multiple years once taxes are paid. Danielle explained the applicant in this case is a builder constructing twin homes who received county approval and had applied to the city for the city portion of the abatement.

Under the program, the property owner continues to pay property taxes to the city and county; the city reimburses up to the approved abatement amount on a schedule. Danielle said the city has historically structured reimbursements so the $5,000 is paid back over roughly three years in practice, with annual payments that have often exceeded $2,000.

After the public hearing concluded with no public questions, a motion to approve Resolution 20251 was made, seconded and carried by voice vote.

The resolution is intended to complement county incentives and to make Pelican Rapids more attractive to builders of new homes. The council did not change the program’s terms at this meeting; implementation will follow the city’s standard abatement and reimbursement procedures.