Hermantown Sewer Project Receives Financial Help From St. Louis County
A major sewer project in Hermantown just received a good influx of financing. The St. Louis County Board has approved up to $860,000 in Tax Abatement Financing for Hermantown in connection with the $6 million sewer work.
The proposed sewer line would extend form the intersection of Okerstrom Road and Hermantown Road to the intersection of Haines Road and Maple Grove Road. The expanded sewer line will provide the capacity needed for multiple commercial and residential developments planned for the area. When finished, the upgraded sewer line is expected to open up an additional 230 acres for future development.
So what does Tax Abatement Financing (TAF) mean? With it, the property taxes that would be due from the designated properties will instead be allocated to the City of Hermantown to fund the sewer line. TAF is used by municipalities to encourage economic development - recognizing that the resulting long term growth in the property tax base is of greater value that the missed property tax revenue in the short term.
The TAF allocated by St. Louis County is expected to end in 2023.