Commentary; Posted: 6/8/05
Columbus needs freeway district
Renae Fry
Guest columnist
What is the value of the freeway district to the residents of Columbus?
Recently, a resident told me that we should allow Forest Lake to annex the freeway district. While explaining to this resident the economic consequences of this type of action, it occurred to me that there may be others who are unaware of the benefits of having commercial development in a community.
The residents and property owners of Columbus engaged in this discussion when we updated our comprehensive plan six years ago. Based on numerous discussions, the community decided it wanted to dedicate the freeway district to commercial uses. It was/is not a matter of acreage, but rather a matter of property tax revenue.
Commercial properties produce a significant source of property tax revenue that serve to reduce the taxes paid by residential properties. By way of example, the Gander Mountain site is generating $55,000 in property tax revenue for Columbus in 2005; the local portion of a typical $250,000 home is $840.
Columbus residents would need to build 65 new homes to replace the property tax revenue generated by Gander Mountain. Historically, we have only added 25 new homes to our community each year.
Gander Mountain is just one commercial property; consider the number of new homes we would need to replace the loss to the community if all of the existing businesses and properties in the freeway district were no longer contributing to our local budget.
The values recently assigned to the properties in the freeway district for property tax purposes means that our commercial district - with just the current development - will cover 25 percent of our total budget in 2006. This is up from 12 percent for taxes payable in 2005. Consider further the loss to the community relative to all of the future development that is possible in the district once sewer and water are available.
If we are so willing to abandon the freeway district, are we also willing to sacrifice the rural atmosphere preserved by the five acre minimum standard to create more buildable lots for the new homes needed to replace the lost tax revenue opportunities?
I am not ready to make that sacrifice and I hope my neighbors feel the same.
Some would argue it would cost less to run the township if we no longer had to incur the costs of the freeway district. Fortunately for us, we provide very few services to the freeway district.
For example, all of the costs of the improvements relative to sewer and water are being assessed to and paid by the property owners in the district. What about roads? The only two roads the township maintains are the two on the east side of the freeway, Hornsby and Clear Lake.
If the freeway district is annexed by Forest Lake, there will be no measurable reductions in running the township because the township still needs police and fire protection; our roads, parks and other public areas still need service and maintenance; and we still need township employees.
The loss of the freeway district means that the local portion of our property taxes will increase dramatically, with no chance for future tax relief.
For 2006 alone, we know that the increase will be 25 percent at a minimum.
Do we need the freeway district - Columbus canít afford to lose it!
Renae Fry lives in Columbus and is a former member of the town board.
Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
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