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Menards Tax Exemption Takes Spotlight At Burleigh County Commission

By   /   June 3, 2013  /   No Comments

At the May 20th, 2013 Burleigh County Commission meeting a somewhat contentious discussion developed because of a request by Midwest Manufacturing (a division of Menards)  for a property tax exemption for a new production facility in McKenzie (east of Bismarck).

 

Scott Nuttleman spoke on behalf of Menards saying the proposed production facility would have a truss plan, block plant, and a wood treating facility. The location would supply a dozen Menards stores in the area.  Currently, these retail stores are supplied by a similar facility in Omaha, Nebraska.

 

“I do want to point out that Menards has agreed to make a donation to both the school district and McKenzie township so those entities remain whole if the county approves this abatement,” Nuttleman said. “We expect this project to create about 120 jobs and the total investment is roughly $22 million for the building and equipment.”

 

County commissioner Brian Bitner, who is in the construction industry on a professional level, said he had talked to current competitors in the business of manufacturing trusses and block that were concerned with the proposed exemption.

 

“This proposal has more to do with existing businesses in Burleigh County than it does with supporting  development, and I’m not able to support the tax exemption,” county commissioner Brian Bitner said.

 

“If they don’t build this facility here, they will build it somewhere and the products will still make it into our market and compete with local manufacturers,” said Russ Staiger of the Bismarck Mandan Development Association.  “These products are being manufactured elsewhere and already being brought in to be sold at their store here in Bismarck, it should not be looked at as something that will be a terrible imposition on competitors here in the area.”

 

County commissioner Jim Peluso addressed the issue of cost to other taxpayers, and whether the area needs the added jobs.

 

“If Menards wants to come in and do this thing they are welcome to do so, but do we want to stick our current taxpayers with the burden of this exemption?” county commissioner Jim Peluso asked. “Whenever there is a tax exemption, someone else has to pay for it, it has to get spread out over everybody else.”

 

Peluso continued by saying: “I don’t think we need 120 jobs in Bismarck, we are moving as fast as I care to.  Some people might not want to hear that, but how are we going to put another 120 jobs out there when we can’t fill the jobs that are out there now.”

 

“I’m not saying we can’t use more jobs, but we’re not in a high enough unemployment situation to convince me we need to grant an exemption to address the jobs situation,” Bitner said.

 

The County Commission rejected the full five-year one-hundred per cent exemption request by a vote of 3-2 (Bitner, Armstrong, Peluso opposed it. Woodcox and Schonert voted yes.)

After the initial vote, County Commissioner Mark Armstrong made a motion to approve a three-year fifty per cent exemption.  That motion passed 3-2 with Bitner and Peluso voting no.

 

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