by April Scheinoha
Reporter
Looking to build a single-family home in Thief River Falls? At its meeting Tuesday, Nov. 16, the Thief River Falls City Council approved an incentive to entice people to build in the city.
The council approved a three-year tax abatement for the construction of new single-family homes no matter the cost or location of the home. The program only applies to city taxes; however, the Pennington County Board and Thief River Falls School District have been informed about the program and may decide to offer a similar tax abatement if they so choose. The city program starts Jan. 1.
“Hopefully, this will give housing a little boost here,” said council member Steve Narverud.
In the past, the city has offered an incentive program for the construction of single-family homes. However, its residential tax abatement program expired in 2020. At that time, the council decided not to renew the program in which property owners received a tax abatement for a new single-family home valued at $200,000 or less. Those tax abatements were for three years if there were no special assessments on the parcel and seven years if there were special assessments. The latter portion of that program proved to be problematic, which led to the decision to instead offer this new tax abatement program. The Public Works Committee also recommended removing the limit on the cost of the home.
In the past, the average annual total abatement was about $8,000 in city taxes. The highest amount was more than $12,000 in 2019.
Pennington County also abated taxes as part of the initial program. The Thief River Falls School District only abated taxes in the Greenwood Neighborhood Addition.
Council member Rachel Prudhomme voiced her frustration over a Planning Commission decision to deny Evergreen Catering and Bakery’s request to build a drive-thru at its location along Greenwood Street. She noted a drive-thru would limit face-to-face contact during the pandemic.
Prudhomme noted the request was denied since a drive-thru doesn’t conform with an industrial park. She added that bakeries are already a nonconforming use in city industrial parks.
Narverud, who serves on the Planning Commission, said the commission approved the construction of Evergreen in an industrial zone since, at that time, it didn’t offer baked goods for sale out of that location. Narverud added that the commission encouraged owner Lisa Robson to find a new retail location elsewhere. He said she is trying to find a new retail location and planned to keep the current location for production.
Prudhomme replied that the current site is convenient for Digi-Key employees. She further noted that city leaders anticipate other businesses will be located in that area in the future.
After she was notified that her drive-thru plans were discussed at the council meeting, Robson contacted The Times. She noted that she has no plans to seek another retail location.