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Nobles, Jackson consider soybean plant groundwork
By Franny White
Worthington Daily Globe
Text version of this story

WORTHINGTON - Nobles and Jackson counties will form a joint powers public nonprofit corporation to approve plans for paying infrastructure improvements needed for the planned soybean processing plant near Brewster.

The two counties' Board of Commissioners approved the measure unanimously Tuesday.

Minnesota Soybean Processors hope to begin construction on a 100,000-bushel-a-day soybean processing plant near Brewster this fall.

The corporation, called Rural Development Financing Authority (RDFA), is defined by Minnesota statutes and would allow the counties to create a Tax Increment Financing (TIF) district on parcels of land where the plant will be built. In turn, the TIF district would allow the counties to collect the difference in property taxes between the currently undeveloped land and the same land after the soybean processing plant is built on it. Those collected funds could be used to pay for the interest and principal amount of bonds issued to pay for the county's contribution toward the plant, though an RDFA board will have to decide on the funds' precise uses.

The Rural Development Financing Authority will be managed and controlled by a board of six members, three from each county. Board members may not hold public office and may not be involved in Minnesota Soybean Processors or the construction of the plant.

Both county boards of commissioners brainstorm for potential members from their counties. Once the RDFA board is named and the Minnesota Secretary of State approves the RDFA's formation, the RDFA board can work toward the creation of a TIF district. Once the RDFA board approves the TIF district idea, the two county boards will have the ultimate power to approve or deny it.

Although local municipalities like Worthington have used TIF districts since the 1970s, this would be the first time Nobles County has initiated such a district. County Administrator Melvin Ruppert said Nobles County is developing its TIF district because the City of Brewster asked for the county's help in financing the project. The town of about 500 residents did not have the resources to finance the project on its own.

While Minnesota Soybean Processors is funding the actual construction of the plant, other entities have agreed to help finance other portions of the project. Nobles County has preliminarily agreed to finance up to $2.5 million of the estimated $7 million in infrastructure improvements the plant will need for adequate sewer, water and road improvements, Ruppert said.

Because the plant will use wastewater treatment plants in Jackson County, Jackson County is involved in the plant's development.

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Last updated: February 1, 2006