Business development has been brisk in Mt. Lake recently, but that has created a potential issue for the proposed development of a hotel project.
At a special meeting Tuesday, Cottonwood County Commissioners heard a request for changes to the county’s current commercial tax abatement program — specifically for the hotel project, but potentially for various other projects in the county.
Mt. Lake Economic Development Authority Director Rod Hamilton stated the hotel project does not qualify for tax increment financing district funding, and that Mt. Lake’s small-city status limits the amount it can offer businesses in tax abatement.
However, he said that the county could potentially offer a tax abatement program to mirror what a TIF could do, which is essentially offer a nine-year abatement of taxes.
The county’s current commercial program offers a sliding abatement over a five-year period.
Windom EDA Director Tiffany Lamb also was on hand to express support for the proposal, as it could potentially benefit businesses in Windom and the rest of the county. However, the board was hesitant to offer up a nine-year tax abatement.
The board ultimately scheduled a public hearing to be held Aug. 29 at 8 a.m. to take input on the potential for the tax abatement for the hotel project.
More from Tuesday’s meeting appears in the Aug. 9 print and e-editions of the Citizen.