Albert Lea City Council members showed their support for the city’s initiative to offer an incentive package to Farmland Foods at a pre-agenda meeting Thursday.

Friday, October 05, 2001

Albert Lea City Council members showed their support for the city’s initiative to offer an incentive package to Farmland Foods at a pre-agenda meeting Thursday. The city will send a final proposal to Farmland next week after the council members officially endorse the package in their Monday night meeting.

City Manager Paul Sparks exhibited the detail of package, and emphasized the minimal involvement of tax money in the plan.

According to Sparks, the city will offer the 32-acre site in the South Industrial Park to Farmland at the cost of one dollar. In exchange the city will acquire 40 acres of the company’s old site near downtown, and take over the clean-up project of the burned-down facility, which will cost about $5 million.

The development project in the industrial park will be granted for $2.5 million of Tax Increment Financing from the state, Sparks said. The city will apply this money to the clean-up effort. Further, the city can expect an additional $2 million in state funding and insurance proceeds for the demolition — thus the city’s expenditure will be minimal, according to him.

Sparks explained the abandoned old plant provided leverage to the city to create more attractive incentive package than any other candidate cities could make. And the city already has the new site that is ready for new development. &uot;This is the best we can do,&uot; he said.

No council members in the meeting objected the proposal.

Dave McPherson said, &uot;I think the package is a fairly reasonable investment, considering the economic impact on those in business and those who help construction. For the economic development, this is probably the best opportunity that we will have in many years.&uot;

Mary Kron also agreed with the plan, saying, &uot;Besides Farmland, we can redevelop the area in the old site. It is an absolutely nice location, and we can bring other businesses there.&uot;

&uot;I think a lot of people are afraid that the deal is going to raise their taxes,&uot; Mayor Bob Haukoos said. &uot;In fact it is going to do the opposite. There will be very little local tax money in the plan. I think the city put a real good proposal together.&uot;

Referring to the chance for Albert Lea to be selected, Haukoos said, &uot;I think our chance is very good. I am very optimistic, because they know that they are going to have to clean the old plant up, if they go somewhere else.&uot;