The consolidation of three SEMA Equipment locations plus its business office makes sense for an assortment of reasons, owner Tom Wozney told the Mower County Board this week. Among the most important reasons were retaining and attracting the quality employees.

“There is no plan to reduce workforce,” he said. “That’s not why we are doing this.”

A safer and more attractive facility is “essential to find the kind of talent that we need,” he said.

An agreement abating county property taxes for 15 years was approved 4-1. The agreement includes conditions that focus on jobs and expansion of the tax base. The public hearing was attended by roughly a dozen people, most of whom spoke in favor of the abatement. There were dissenters, however, including Commissioner Tony Bennett, the lone no vote.

“The preponderance of the evidence indicates they (SEMA) would build it anyway,” Bennett said after the hearing. The incentive was too generous, he said.

Commissioner Jerry Reinartz recommended the agreement, but said he had reservations in the beginning as well. However, the conditions included will protect the interests of the county, he said. Reinartz and fellow commissioner Polly Glynn serve on the Finance Committee.

Glynn said the new facility, which will attract employees from other counties, will definitely benefit the county and the county has approved a tax abatement for a business before. The county did it for job retention, she said, noting abatement has been an economic development tool available to counties since 1997.

Glynn said she encouraged SEMA to consider asking for the tax abatement.

“Any new development in any area of Mower County is a blessing,” she said.

The new facility will employ 46 people, which is equal to the staffing of the closing locations. To get the full benefit of the tax abatement over the first 10 years, estimated at $26,000 annually, SEMA must have 40 full-time employees. In the final five years, it must employ 50.

Another condition is the county will continue to collect full taxes on the land. The abatement is for the improved value only.

The agreement will also include language to protect the county’s interests regarding valuation and tax court.

Grand Meadow mayor, Dennis Berge, spoke in support of the abatement. “We are really excited at the prospect of SEMA  coming to Grand Meadow,” he said. “It’s going to be a big deal for Grand Meadow.”

The city also agreed to a 15-year tax abatement — worth an estimated $56,000 annually — along with other incentives,
he said.

“We are looking at the long-term,” he said. “Why we did the 15-year abatement.’

Wozney distributed a handout during the hearing explaining the project.

“We looked at the three current facilities in Spring Valley, LeRoy and Austin,” it said. “It was determined that they would need $2 million to $3 million apiece in renovation along with additions to be functional today to keep current employees and attract new employees.

“This realization, along with John Deere’s Location Rationalization Study and the continued trend of farm consolidation made the option of store remodels and additions at all three sites economically unfeasible.

“The final conclusion from Deere, SEMA and other industry experts after collecting all the data and forecasts was to build a new site between Dexter and Grand Meadow. We chose Grand Meadow  if the necessary permits, site capability and tax abatements were attainable.”

The new facility will bring housing growth for Grand Meadow and the surrounding area as well as business growth, Wozney said.

“Customers to this business will be driving from Mower County but also from Fillmore, Dodge, Olmsted and Freeborn in Minnesota and Howard and Mitchell counties in Iowa,” he said. “The traffic to this store will create business opportunities to current and new businesses in Mower County.”

Detractors who spoke at the hearing said the new location will not be as convenient as the Austin location; that the county needs to hold the company accountable for its promises; that the decision opens the door for more existing businesses to demand abatements; and that the county should just have given the company an economic development grant.

Supporters who spoke said the prospect of seeing one of the new John Deere facilities here is exciting and will draw many visitors. They said the county will eventually get more in taxes from the property; SEMA’s leadership has been transparent; the company supports education; they are “quality” people; and the housing market will improve in the area.