OTC to continue single-family tax rebate with approved cities
News | Published on January 24, 2025 at 1:23pm EST | Author: frazeevergas
0MPCA and Watershed grants available for septic systems

By Robert Williams
Editor
With the expiration of County-wide Single-Family Tax Rebate in Otter Tail County at the end of 2024, Community Development Director Amy Baldwin discussed the county’s willingness to consider partnerships with cities who wish to continue offering a tax rebate program locally at the commissioner’s meeting on Tuesday, Jan. 14.
Moving forward, cities with an approved partnership program can provide applicants up to $5,000 in county property tax abatements when building an eligible new house in a city where there is an approved partnership program.
The program will basically continue at the city-level with the county’s partnership, according to Baldwin.
Currently, Pelican Rapids and Ottertail are already approved.
“There are a couple of other communities that are discussing so we’ll see if any additional come forward with a formal request from their communities for the county to partner on those,” said Baldwin.
The Vergas Housing and Redevelopment Authority have discussed continuing the program, but have yet to meet this year to continue those discussions. The HRA/EDA meets for the first time Wednesday, Feb. 5, at 2 p.m. in the Government Services Center downtown.
A public hearing related to these applications for tax abatement is required. Given an expected volume much less than previous years, the following public hearing dates and times in 2025 are proposed:
• Tuesday, Feb. 11, at 10 a.m.
• Tuesday, April 8, at 10 a.m.
• Tuesday, June 10, at 10 a.m.
• Tuesday, August 12, at 10 a.m.
• Tuesday, Oct. 14, at 10 a.m.
• Tuesday, Dec. 2, at 1 p.m.
In addition, the Feb. 11 public hearing will include consideration of applications from Otter Tail County’s Property Tax Rebate Program that were received before December 31, 2024. According to Baldwin’s report, there were 20 applications that came in the last fortnight of the year prior to the deadline.
Notice of the public hearings will be published as each hearing date approaches on an as-needed basis when applications for new homes in a partner community have been submitted. If no applications have been submitted since the prior hearing, a public hearing will not be noticed or held.
Baldwin also noted that two commissioners need to be appointed to the nine-member Community Development Agency (CDA) board, along with a needed replacement for David Ripley, who completed his six-year term in 2024.
Bob Schempp, the owner of the Lakeland General Store in Dunvilla was suggested by Chairman Wayne Johnson and appointed unanimously to a six-year term.
Schempp purchased Lakeland General Store approximately five years ago, according to Johnson and has expanded operations, along with purchasing Webber Dock & Lift in Detroit Lakes in 2021.
“We thought he would be a good fit and bring a new perspective to the CDA,” said Johnson.
New Commissioner Sean Sullivan will complete the one-year term remaining from retired Commissioner Lee Rogness.
District 3 Commissioner Kurt Mortenson also serves on the CDA.
Human Resources
Assistant Director Stephanie Retzlaff proposed a new position in HR, a grant-funded communications specialist, that was approved unanimously by the board.
This role will support the department, the Health and Wellness team, and other county departments as appropriate, in efforts promoting health and wellbeing, and in alignment with resiliency measures as outlined in the Otter Tail County Long Range Strategic Plan. This position would be under and a part of the external communications team.
The fully-funded position comes from two primary grants:
• Foundational Public Health Responsibility grant (FPHR): $50,000 OTC will receive annually through P4HCHB
• Infrastructure Funds: $49,000 in innovation project funding that is effective July 1, 2024- June 30, 2026
These are funds that the Minnesota Legislature provided ($6 million in annual funding) for local and tribal health departments to strengthen the public health system. These grant funds are a partnership with Polk Norman Mahnomen CHB to build out a functional model of public health communications in the seven county region.
The position’s funding will need to be reassessed in 2026, but according to Retzlaff the Public Health department has maintained zero tax increases to the tax levy the last three years.
Probation
The board previously passed a resolution to change probation services from a county probation office delivery system to community corrections. This transition is scheduled to be effective as of Friday, Jan. 31.
Currently, two Corrections Agents have indicated their desire to become probation agents with the county.
County Administrator Nicole Hansen sought approval from the board to continue the transition for employees to the county, which was given unanimously.
All salaries are covered by funding from the state.
Planning and Zoning
A Preliminary Plat of “Century Farms Subdivision” consisting of 10 Single Family Residential Riparian Lots and 12 Single Family Residential Non-Riparian Lots was sent to the board for a Conditional Use and a permit application to construct a gravel roadway in a shoreland management area for a new residential subdivision.
The proposal is in Section 16 of Maine Township, located east of 31130 317th St. – Underwood on Maine (Round) Lake.
The need for an environmental assessment worksheet (EAW) was on the table after multiple discussions about the project.
Commissioner Mortenson gave a review of major points and petitions to the project. The project was also discussed at length at the Jan. 7 Commissioners meeting before being tabled.
“This board has reviewed the application; we did not take action last week for further review based on the entire record of this case,” said Mortenson.
Commissioner Lahman made a motion of a negative declaration for the need of an EAW, in other words, an EAW for the subdivision is not required.
The board unanimously determined that there is no need for an EAW.
Planning Commission recommendations after a public hearing was held in November. The commission and county board approved the preliminary plat with conditions. The plat was approved 3-2 at the Commission and unanimously approved by the commissioners.
The Conditional Use and a permit application to construct a gravel roadway in a shoreland management area was approved with conditions. The Commission passed it 4-1 and the Commissioners unanimously approved.
AIS
One appointment was made to the Aquatic Invasive Species Task Force adding Mark Kaelke of Underwood. Kaelke works for West Central Initiative and was instrumental in the Otter Tail One Watershed One Plan process. The remainder of the task force were all reappointed.
Septic grants
Otter Tail County was awarded $80,000 from the Minnesota Pollution Control Agency to be used to replace eligible subsurface sewage treatment systems. Grants using the funds will be awarded up to 50 percent of the total cost of replacement, not to exceed $7,500. The average cost of a septic replacement in the county is $11,836.
Income limitations for eligibility range from an income of $74,400 for one individual to $98,250 for a household of eight people.
The same thresholds apply to grants available from the Fix Up fund program from in area watersheds.
Otter Tail County has been awarded a grant of $25,000 from the Otter Tail River One Watershed One Plan Watershed Based Implementation Funds, $20,000 from the Leaf Wing Redeye WBIF, $10,000 from the Bois de Sioux WBIF, $20,000 from the Pomme de Terre WBIF and $10,000 from the Long Prairie WBIF which can be used to replace eligible subsurface sewage treatment systems.
For more information contact the county’s Land and Resource Management office.