Lonsdale City Council Faces Community Debate Over Tax Abatement for Development Project
- Meeting Overview:
In a recent Lonsdale City Council meeting, the proposed tax abatement for a significant apartment development project sparked debate among council members, residents, and the developers. The proposal, which would grant a 75% tax abatement over ten years amounting to $396,876, faced scrutiny for its financial implications and potential benefits to the community. The project, initiated by BJB Holdings, involves reserving 20% of the apartment units for individuals meeting specific income thresholds.
The tax abatement proposal was a central point of discussion, drawing diverse opinions from those present. A resident named Steve Turney raised questions about the city’s ability to recapture the abated taxes if the property were sold after the ten-year period. In response, it was clarified that while the city benefits from 25% of the tax base during the abatement, the remaining amount is not recaptured when the period ends.
Concerns were also voiced by Evelyn Duan, a certified public accountant and former city council member, who criticized the abatement. She highlighted that the county had denied a similar request and questioned the classification of the housing project as “market rate,” given local income levels. Duan advocated for prioritizing industrial and commercial business attraction over subsidizing housing projects.
The discussion revealed a split among community members, with some supporting the economic boost from the development, projected to bring in $700,000 to $800,000 annually, while others, like Gary Kazachk, a long-time resident, expressed skepticism about the project’s benefits, citing concerns over increased taxes and crime.
The developer, Brian Breman, emphasized the necessity of the abatement for the project’s financial viability, stating that without it, the development would not proceed. He noted that the property currently generates about $1,900 in annual taxes, and after two years of the proposed abatement, the city would recover an amount equivalent to seven years of taxes from the vacant land.
Despite the potential for increased local revenue from new residents, the council expressed reservations about setting a precedent for future residential developments. There was also a focus on the city’s existing debt and budget cuts, with some council members arguing against the fairness of granting tax relief.
After a lengthy dialogue weighing the pros and cons of the abatement, the council moved to a vote on the proposal, which ultimately did not pass.
In other business, the council discussed the resignation of Officer Haley Van Hublin from the Lonsdale Police Department. Chief Jason Schmidtz announced Van Hublin’s departure, scheduled for December 21, 2025, and acknowledged her contributions during her 13-month tenure. The council swiftly moved to approve her resignation and initiated a search for a full-time replacement.
Additionally, the meeting included a presentation on a potential hotel development in Lonsdale. The presentation, led by a representative from Market Point, focused on the need for a feasibility study to assess the project’s viability. The proposed hotel would consist of approximately 54 rooms, requiring an estimated $10 million investment. The council discussed the necessity of the study, which would provide crucial data to secure financing and gauge market conditions.
The council also addressed a proposal for contracted social media services to enhance the city’s online presence. After considering various options, the council approved Sophie and Steven Orl for the role at a cost of $1,000 per month, emphasizing the importance of maintaining a professional and engaging social media presence.
In reports from council members, updates were provided on city projects, including the 2026 Milan overlay project, wastewater treatment facility evaluation, and wellhead protection plan. A visit to Scan Air Filter and initiatives at the library, such as a winter reading program and STEM kits, were also highlighted.
Tom Berg
City Council Officials:
Brian Wermerskirchen (Councilmember), Scott Pelava (Councilmember), Kari Miller (Councilmember), James Vosejpka (Councilmember)
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Meeting Type:
City Council
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Committee:
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Meeting Date:
12/22/2025
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Recording Published:
12/22/2025
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Duration:
118 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Rice County
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Towns:
Lonsdale
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