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MEMO <br /> DATE : September 8, 2000 <br /> TO : Honorable Mayor and Council <br /> FROM: Jim March <br /> RE : Northern Forest Products Tax Abatement <br /> Included in your packet is a letter that was received from Paul McDowell at Northern <br /> Forest Products. Mr. McDowell illustrates a number of concerns that he has with the <br /> original establishment of his tax increment district. Mr. McDowell further indicates that <br /> he is desirous of expanding his business and mentions that he has discussed locating his <br /> expansion in Hugo to be near rail access. <br /> Mr. McDowell is requesting a five -year tax abatement as an incentive for Northern Forest <br /> Products to expand in the community. The abatement would only be granted for five <br /> years if there is an actual expansion. Only a one abatement would be granted, if <br /> expansion occurred. If the Council is willing to grant this abatement, a new public <br /> hearing will have to be held. The abatement would only be granted for the increased <br /> market valuation, not for the existing building valuation. <br /> Sid Inman and Carolyn Drude from Ehlers and Assoc. will be present to discuss this issue <br /> with Council. Sid Inman will be bringing an impact analysis to show the costs of the <br /> requested abatement. I believe it is quite important to keep this business expansion and <br /> new jobs within the community. <br />