Tax abatement key for SEMA project; GM: Facility is otherwise nearly cost-prohibitive

Published 8:14 am Tuesday, December 5, 2017

A LeRoy-based John Deere dealer’s plan to consolidate three of its sites into a main supply warehouse and headquarters near Grand Meadow includes asking Mower County for 15 years of reduced taxes.

The abatement request by SEMA Equipment, Inc., is the topic of a public hearing at 4 p.m. Thursday before the Mower County Board at the county government center in Austin.

SEMA Equipment, Inc., anticipates construction of the facility in the spring of 2018.

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General Manager Tom Wozney said when the company was researching project costs, the anticipated taxes on the new facility made it nearly cost-prohibitive. County officials  brought up the idea of tax abatement, he said.

Wozney said SEMA has signed a letter of intent for the property, but to complete the sale there are contingencies, including the approval of this tax abatement plan.

Another contingency is gaining road access to the property from the Minnesota Department of Transportation.

The company has eight southeast Minnesota locations, including the three it plans to consolidate — LeRoy, Austin and Spring Valley. Its Rochester business office will also be part of the new facility.

SEMA Equipment’s other locations are Plainview, St. Charles, Wanamingo, Northfield and Caledonia.

In other action at the County Board meeting, which begins at 3 p.m., commissioners will consider a zoning ordinance amendment request from Jason Korfhage of Austin-based Dune Acquisitions, according to the County Board agenda. He is seeking modification to the subsurface sewage treatment systems ordinance to allow for Type IV septic systems.

The board will also hear a request from Auditor-Treasurer Steve Reinartz to set new minimum values on tax-forfeited parcels and set the date for auction.

Tim Ruzek, water plan and outreach coordinator, will speak about the 2018 Aquatic Invasive Species proposed budget.