June 10, 2021 at 1:12 p.m.
Board give initial nod to TIF for Reed's, oppose trust land on Shingobee Island
The board set a public hearing for the 9 a.m. Aug. 6 regular county board meeting at the courthouse in Walker to consider a request from Reed's Sporting Goods in Walker to have a tax increment financing (TIF) district to build a three-building warehouse/distribution center in the older portion of Walker Industrial Center.
The site lies in Shingobee Township, just outside the Walker city limits. Shingobee Township has voted to support the TIF district.
In February 2012, Cass commissioners voted not to accept any additional business subsidy projects unless requested by a local unit of government. Shingobee Township's endorsement for this project makes the project eligible for the county to consider it under the board's policy.
The project would give Reed's 36,000 square feet of storage space, adequate to house larger items such as decoys, fish houses and motors, where the customer could pick up purchases or from which Reed's could ship to online customers.
Reed's currently employs 45 full time employees in the summer and 33 in the winter, who earn an average of $13 per hour. The firm expects to initially hire another five to six employees for the new distribution center, with the expectation of expanding to 10 within two years.
The new buildings are expected to cost $1,226,915.
Approval of the TIF district would enable Reed's to construct all three buildings at once, rather than in stages. Site work, concrete, asphalt, underground plumbing and sewer and water would be eligible TIF expenses if the project is approved.
The board appointed Commissioners Neal Gaalswyk and Bob Kangas to represent the board on a committee to further study the project proposal before the public hearing.
Cass commissioners voted to oppose Leech Lake Band of Ojibwe's request to the U.S. Department of Interior Bureau of Indian Affairs to place in federal trust for the band a building and land that formerly housed the World of Christmas business on Shingobee Island south of Walker.
The band proposes to use the building as a retail outlet and museum. It sits on just under one acre of land. If placed in trust, the property would become exempt from property taxes.
In a letter of objection, the county noted that the county provides law enforcement, zoning, solid waste, recycling and health, human and veterans services as well as an access road to the site.
Further, it lies within the Shingobee Island community sewer and water district. As such, the property should contribute to the upkeep of that system, the county contends.
Cass commissioners note in their letter that the former Dutchman restaurant property on Shingobee Island was placed in trust. The band had proposed to convert that to an improved restaurant and small casino but instead the property has remained undeveloped and has deteriorated.
It is not used for a tribal business as it was originally proposed, the county board noted.
The World of Christmas building currently has a sign on the front identifying it as "Ojibwe Traders" and "Leech Lake Museum of History," but it is rarely open, the county letter states.
"It appears the sole motivation for this trust land application is to avoid contributing to the cost of services provided by other governments," the county states in its letter to the Bureau of Indian Affairs.
"The tribal council has not been open to meeting with our county board to discuss common interests including a more comprehensive approach to public land management such as trust applications," the county letter continues.
"The county board is responsible for the management of the Shingobee Island sewer system that provides service to the property in question. Absent a written understanding, we are concerned that further trust status within the sewer district will limit the ability to assess and collect an equitable share of the operating and capital costs," the letter states.
The Bureau of Indian Affairs original notification letter gives no indication of a date when a decision is expected.
Cass County has received an invitation to Leech Lake Reservations' state of the band address scheduled for 10 a.m. Aug. 22 at Northern Lights Events Center, but the tribal council has cancelled more than one scheduled joint meeting with the county board since the current tribal administration took office.
Second publication rights after Brainerd Dispatch.
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