Moorhead City Council approves $133,000 in tax exemptions for two business expansions
MOORHEAD - The City Council here unanimously has approved two tax exemptions worth a total of nearly $133,000 to expand a car dealership and a senior living facility.Council members OK'd tax break applications on Monday, July 10, from Ward Muscat...
MOORHEAD - The City Council here unanimously has approved two tax exemptions worth a total of nearly $133,000 to expand a car dealership and a senior living facility.
Council members OK'd tax break applications on Monday, July 10, from Ward Muscatell, 2951 11th St. S., and Roger Erickson, president and general partner of Farmstead Care of Moorhead, 2810-2854 34th Ave. S.
In return for its tax exemption, Muscatell agreed to hire 11 full-time employees to work at the new 7,500-square-foot dealership and service center south of the existing Subaru dealership.
Muscatell submitted a tax break application in June under the name KWJ Properties LLC, which will own the land and future dealership building, which will include a sales office and service bay. The tax break for the new dealership building, which has an estimated value of $1 million, will be $80,000 over five years.
Construction of the new building is set to begin this month and is expected to be done in December.
Erickson applied for Farmstead's tax break to construct a three-story, 33-unit senior apartment building directly south of the existing facility, which is part of Farmstead Estates Senior Living Community in south Moorhead.
Each unit will be roughly 1,100 square feet, and the building will include a common area, commercial kitchen and underground parking. The city assessor estimates the new building's value will be $3 million. Farmstead's tax exemption for the new building is estimated at $52,800 over four years.
Construction is expected to start in August and be completed in September 2018.