by April Scheinoha
Editor
The Thief River Falls City Council approved moving forward with plans to issue bonds for two roofing projects at its meeting Tuesday, Nov. 18. A public hearing was held prior to its consideration of the matter.
The council plans to seek General Obligation Capital Improvement Bonds for the library roof project and General Obligation Tax Abatement Bonds for the liquor store roof project. It is expected that the city will be seeking a total of $310,000 in bonds at its Tuesday, Jan. 6 meeting. Both sets of bonds would have seven-year terms. Both roofs have already been replaced.
George Eilertson, representing consulting firm Northland Securities, said the abatement bond for the liquor store enables the city to identify one or more parcels where the city taxes equal or exceed the approximate amount of the levy needed to service the debt. One parcel exceeding that amount has been identified per state statute. Eilertson explained the city taxes would be abated to raise the levy to pay the debt service on the abatement bond. However, he noted no properties would be treated differently. Eilertson said it is anticipated that liquor store revenue would eventually be used to pay for the bond.
Mayor Mike Lorenson noted that the liquor store roof was last replaced in the 1980s. Given the amount of time that had elapsed since its replacement, the roof leaked, leading to increased costs. Lorenson called it a matter of kicking the can too far down the road. “It’s unfortunate, but it is what it is,” he said.
After a public hearing, the council approved modifying Tax Increment Financing District 1-5. The TIF district was originally created in 2003 to assist with the development of 18 single-family homes by Midwest Minnesota Community Development Corporation.
Rebecca Kurtz, representing consulting firm Ehlers, indicated that the modification was needed to amend and increase the budget. According to paperwork Kurtz provided to the council, the budget increased by about $700,000 to $1,705,105, which includes higher interest and administrative costs.. She said the district didn’t develop as fully as MMCDC had anticipated and the interest cost was fairly higher than anticipated. Kurtz also noted that the modification doesn’t increase the TIF obligation or change the outstanding TIF obligation.
During the course of TIF districts, taxes are still paid to the appropriate governmental groups. The additional, new property taxes generated from the property are then used to pay for eligible development costs over the course of the TIF district. The city receives up 10% of that amount for the administration of the TIF district. The final TIF payment will be Feb. 1, 2031 or sooner if the obligation has been met before that date.
The council approved a 3.2 beer license for Pizza Hut. Joseph Comes has purchased the business, taking ownership Tuesday, Dec. 9. The license, which includes Sunday beer sales, takes effect Jan. 1. Currently, Pizza Hut doesn’t serve alcohol.
City Council approved Visit Thief River Falls’ 2026 budget as it had been presented two weeks earlier. Thief River Falls has a 3% lodging tax. Of the amount accrued each year, the city keeps 5% for administrative fees while Visit Thief River Falls receives the remainder. The tourism organization’s proposed budget projects $135,000 in gross lodging taxes for 2026. Visit Thief River Falls receives no taxpayer money from the city.
Lorenson presented a plaque to Brian Jacobson to commemorate his retirement from the Thief River Falls Volunteer Fire Department. Jacobson retired from the department Oct. 1 after 32 years and three months of service. During that time, he served as the volunteer fire chief for eight years and served as an instructor in the Thief River Falls Fire Academy for the last five classes. Upon receiving the plaque, the audience clapped in appreciation for Jacobson’s dedicated service to the department.
Lorenson provided a mayoral update. He thanked council member Jason Aarestad for assisting with listening to voters’ questions and concerns Friday, Nov. 14. Lorenson had invited any residents concerned with the city’s proposed 2026 property tax levy increase to meet with him at that time. Aarestad had provided his assistance when a considerable number of individuals had arrived at one time.
Lorenson further noted he is concerned about the toxic, inaccurate misinformation spreading on Facebook pertaining to the city’s proposed 2026 property tax levy. Lorenson indicated that he and Aarestad were able to dispel some of that misinformation during the above meeting.
Lorenson also voiced concerns about some misinformation that is spreading regarding the Federal Prospects Hockey League coming to Thief River Falls. He said the city is spending no tax money on the FPHL team and may benefit with some revenue from the team using Ralph Engelstad Arena starting at the end of 2026.
Lorenson and other council members referred to the difficulty of hearing – both in person and on Facebook – a league press conference Wednesday, Nov. 12 at REA. He said the city is looking at using some donated funds to improve amplification there.
The next council meeting is scheduled Tuesday, Dec. 2 at 5:30 p.m. at City Hall.