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Commission approves tax exemptions for projects

By Nick Smith
Staff Writer
Published/Last Modified on Wednesday, June 10, 2009 11:07 AM CDT


The Williston City Commission approved two different tax exemptions during its meeting Tuesday evening.

The two proposed tax exemptions came during two separate public hearings. In the first, Dr. Sara Solberg spoke on behalf of Soto Holdings, LLC. Solberg works for the Great Plains Women’s Health Center, which currently rents space at Williston’s Mercy Medical Center.

The women’s health facility is planning to build a new 9,500 square-foot clinic in the city.

Solberg said the women’s center is proposing a property tax exemption of five years at 100 percent, which would help in securing funding for the project. She said the project would help in providing more space, would bring a few new jobs and people coming for appointments would likely shop or eat in town, which helps local businesses.

“We’re very excited about the potential of investing in this community,” said Solberg. Commissioner Howard Klug asked Solberg if Mercy Medical Center would lose revenue if the women’s center moves to a new location. He also asked if the women’s center would still use facilities at Mercy for any of their procedures.

Solberg said the people at Mercy wouldn’t be too upset if they moved because Mercy could use the rented space for its own needs. She also said some procedures would still be done at Mercy, but appointments and smaller procedures would be done at the new clinic.

Economic Development director Tom Rolfstad said having the women’s health center in a newer, better location is a good idea. He added having multiple quality health clinics in town is a good investment to the community.

“To me this fits what the tax exemptions were set up to do,” said Rolfstad.

Commission members heard the City County Abatement Committee had reviewed the request and recommended the commission approve a tax exemption of two years at 100 percent, followed by three years at 50 percent. The commission voted 4-0 to approve the abatement committee’s recommendation, with Commissioner Brad Bekkedahl not in attendance.

The second public hearing regarded a proposed tax exemption sought by LaFave Properties, LLC. Joe LaFave, president of Lakeside Builders of Iron Mountain, Mich., sought either a payment in lieu, and if that was denied, then he hoped to fall back on the five-year, 100-percent tax exemption.

LaFave said his project is to build a 56-room motel that would be a combination of overnight and extended-stay rooms. He said his motel would be located near the courthouse and his motel would be the furthest away from the airport of any in town. LaFave thought his request was fair because location was a primary obstacle that may make it tough to get noticed initially.

“It’s going to be tough for people to find; I might have to get a shuttle going from the airport to it,” said LaFave.

Klug said although the city is always open to welcoming new businesses, he didn’t see why such a generous exemption should be made to a project such as LaFave’s.

“We just approved two years, 100 percent and three years, 50 percent for something that‘s already here to enhance their business. Now we want to approve 100 percent for someone coming in with something that’s direct competition to other businesses already here?“ said Klug.

Klug said such consideration should be given fairly to established businesses as well.

LaFave said he had looked into the tax exemptions, how the commission acted on them in the past and had modeled his proposal after the 80-room Candlelight Suites project approved in April. He said his motel is smaller and tougher to get going and his smaller motel at a more obscure location could use the help in it’s beginning years to build stability without too many tax worries.

“I want to make sure it gets off the ground and it stays off the ground,” said LaFave.

The commission approved the request by a 3-1 vote, with Klug voting against it.

In other business:

*The commission unanimously giving a one-year extension of comp time to public works maintenance superintendent Jack Sjol due to the extra time for snow removal this past winter.

*The commission appointed Connie Tesk to the Cemetery Advisory Board to fill the position due to the resignation of Judith Lodwig.

*The commission voted to deny a proposed zoning change from R-1 single-family residential to R-3 low-rise, multi-family and townhouse residential of Lots 1-3 in the Bailey Subdivision that was requested by John Liffrig.
 

Comments

    First Knight wrote on Jun 16, 2009 12:02 PM:

    " Once again Howard Klug should have declared a conflict of interest. As a City Commissioner, Howard, your job is not to represent your business or your boss, but to do what is best for the city. "

    AllForSupportingDevelopers wrote on Jun 16, 2009 11:51 AM:

    " The fact of the matter, he has his opinion and reasons to vote against...but it would be best to be like Mayor Koeser, and refrain from voting because of conflict of interest. (Koeser has done this a few times because of bidding on communication equipment, or developers who he was related too...I admire he sits back and does not vote because of the conflict). But the commisioner Klug has been out voted so far, so it doesn't really matter if he votes against the items. I am glad to see Williston progressing and working with developers to bring in more hotels, and hopefully restaraunts and stores also. I understand they compete with existing businesses, but we need more and newer motels, stores and restaraunts in this town. "

    noname wrote on Jun 14, 2009 7:33 AM:

    " It's called greed. "

    Outsider wrote on Jun 10, 2009 1:37 PM:

    " I could never figure out why someone is afraid of competion. Mr Klug, in my estimation competion only improves the already existing businesses by keeping them on their toes and providing better services. People normally go where they receive the best service. In your position as a city commissioner you should be looking out for the good of all people and not just your own agenda and the El Rancho. "

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