Program will offer tax rebates for new homes

By Chad Koenen

Publisher

The City of Ottertail has big plans for a new property tax rebate program within the community.

During its regularly scheduled meeting on Thursday, Nov. 21, the Ottertail City Council formally approved a new property tax rebate program that the city council hopes will continue a strong growth within the community. The goal of the program is to encourage the construction of new primary residence single and two-family housing units and to encourage replacement of dilapidated housing structures within he city limits between January 1, 2025 and December 31, 2029. 

As part of the program, any person who constructs a new single family or two-family home, and files an application with the City of Ottertail, could receive 100 percent tax rebate of the city’s share of increased real estate taxes as a result of building a new home. The period of time will be for up to five years, or $5,000, whichever is met first.

In order to be eligible for the program the property must be located in the City of Ottertail and zoned residential; the applicant and property shall not have benefited from other financial assistance like TIF, Workforce Housing and Small Cities Development Program; built to all local, state and federal regulations; property taxes are current and paid on time and in full; and administrative approval must be obtained prior to the state of construction of the new home. 

The rebate period will begin in the tax year when the property realizes a value increase over original value due to the construction of the housing project. In the event construction has not commenced within one year of approval, the rebate is eliminated and the property owner will need to reapply for the program.

In addition to the city taxes, Ottertail has also sought Otter Tail County’s support to offer a rebate for the county’s increase in taxes for new single and two-family housing in the community. 

The new program is similar to one that was developed over the past five years on the county level known as the Big Build. That program was county sponsored and featured a similar tax rebate incentive for new housing within Otter Tail County. 

In other news

• Accepted a $2,500 donation from the Ottertail Rod and Gun Club to purchase an ice rink warming house at Thumper Pond and a $6,000 donation from the Ottertail Lions Club for 2025 fireworks ($3,000 for OtterFest and $3,000 for OtterDazzle). 

• Approved a resolution declaring retail sale of cannabis and lower-potency hemp edible registration authority delegation to Otter Tail County. The county is in the process of developing an ordinance to regulate the sale of cannabis, which is what the City of Ottertail will use within its city limits. 

• Declared a vacancy on the Ottertail City Council after Ottertail Mayor Ron Grobeck was elected to one of two open seats on the Ottertail City Council through a write-in campaign. Grobeck was re-elected as mayor and declined the seat on the city council as he will continue to serve as mayor. As a result, the city council will appoint an individual to the city council until November 2026 when the seat will be up for election as part of a special election to fill the remaining two years of the city council seat. 

• Approved the proposed assessments for the Wallenberg Drive surface improvement project as presented. The city council put the motion on hold for a month after hearing written opposition from some adjacent property owners along the road. 

• Approved a proposal from the Ottertail Business and Community Association to purchase a new spider web playground equipment for the city park. The new piece of equipment is just over $21,500 in cost and the OTBCA plans to reimburse the city for the cost of the new equipment.