Alice Pickering
Wyoming Area ReporterNothing but positives are the reactions of officials in Wyoming, including Mayor Vern Haag and County Commission Ben Montzka after the governorís press conference Nov. 6 to announce that Polaris will build in Wyoming.
Wyoming Mayor Haag said he was positive about the results of the negotiations between city officials and Polaris. The deal for Polaris Industries, Inc. to locate a research and development facility in Wyoming was set on Thursday, with a signed letter of intent. ìItís official, Polaris is coming to Wyoming,î Haag said.
City Administrator Dennis Coryell said negotiations lasted almost to the time of the news conference, but the city and Polaris Industries, Inc. sketched out a letter of intent. It identifies, ìwho is paying for whatî in the Polaris move to Wyoming.
ìBoth sides made concessions, the good news is that the city is in a position of less risk,î Coryell said.
The job opportunity building zone (JOBZ) program, forgives taxes of nearly every kind for Polaris for a period of 12 years. However, the company will be paying about $70,000 annually in property taxes for the unimproved value of the land.
Those dollars will go into the cityís general fund. JOBZ is an incentive program, designating areas for economic development and makes Minnesota competitive with neighboring states. Coryell added that some parts of the negotiation were a surprise and the numbers are still changing somewhat.
The letter of intent is a commitment for both parties to ìmove forward and outlines how financing is to take place.î This is a hybrid document that includes more detail than is commonly included in a letter of intent.
The next stage includes negotiating a purchase agreement and development agreement. The city left the negotiations session with a $10,000 escrow check to pay for legal and engineering services.
The city must complete an environmental access worksheet, one step of which is to monitor wells which were placed on the site when the wastewater system was constructed.
Coryell said the Polaris environmental department has contacted him about beginning the EAW. Polaris will cover the impact of their buildings on the site. Part of the cityís responsibility will be the impact of road relocation and supplying infrastructure.
Polaris benefits
Haag said there are two important outcomes of Polaris locating in Wyoming. The first is the positive impact this will have on the city in terms of attracting additional supporting businesses to the area.
Already there have been more queries about business sites in the Wyoming Business Park, he said. It is anticipated that a hotel and additional restaurants will be locating in the area, he added.
A second result of Polaris locating in Wyoming is that it ìaccelerates the decommissioning of the cityís wastewater treatment plant.î
The concerns the city has had about reaching maximum capacity of its system will be alleviated because the city will be able to hook up to the regional sewer system sooner. Haag also anticipates this will accelerate the schedule for an additional water tower in the city.
ìEconomic development looks really bright for southern Chisago County,î the mayor said.
Montzka agrees
County Commissioner Ben Montzka echoed Haagís comments. Polaris locating in Wyoming means high quality jobs for the area, ìclearly a win for Chisago County,î he said.
Although the city and county will be forgoing property tax in any form for 12 years, ultimately this is a good thing for our community. He noted that JOBZ has brought Andersen Windows to North Branch.
Montzka said the tax structure in Minnesota favors homeowners. Commercial property is taxed at a higher rate. In neighboring states, residential tax rates are higher than commercial rates
This tends to put Minnesota at a disadvantage in attracting commercial development. Montzka believes the area will see additional business. He noted ìlocal government leaders now try to plan communities to include commercial endeavors,î to create a tax base mix.
In Wyoming, only about 13-14 percent of the tax base is commercial. This will change after Polaris is established in the area, he said.
Work is beginning on the development agreement, with an anticipated closing on the property in June. Construction of the Polaris administration building will begin after that.
Besides Coryell, Haag, and Montzka, Council members Sandy Standridge, Lynn Koalska, Ted Phillips, Wyoming Township Chairman Lawrence Parker, members of DEED, Polaris representatives attended the reception at the invitation of Gov. Pawlenty.
ìThe last time anything of this magnitude has come to Wyoming, was when James J. Hill built a railroad from St. Paul to Duluth,î Haag said.
8th District Congressman Oberstar, met with the city representatives Tuesday to announce a $1 million award to assist the city in decommissioning the wastewater treatment plant.
According to Coryell, Oberstar has been ìon board for the regional sewer system for some time.î
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