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Crookston's Housing Incentive Program -
A Win Win for Everyone.

KROX-AM

May 2005 - The City of Crookston Housing Incentive Program is off and running for another year. Since it’s inception in 2002, 53 homes have qualified for the new construction Housing Incentive Program. The Program has changed looks over the years, especially in the Tax Abatement area. The County and the School District started participating in the program in 2004 by abating their portion of the property tax for newly constructed homes and will continue to do so in 2005. Housing has been on a rollercoaster ride the past several decades. During the mid 70’s Crookston experienced new housing at the rate of as many as 30-40-housing starts per year. Along with this came an increase in population. During the 80’s Crookston experienced a housing slump with new dwellings being built at an approximate rate of 5 per year. This caused our housing stock to actually diminish, which in turn resulted in a downturn in our population. During this time period the flood control project was in its inception and was projected to eliminate approximately 70 homes in Crookston, which means a loss in tax base in the neighborhood of $3,000,000. In the late 80’s the City realized that something had to be done and it would take the city’s involvement to address the problem.

It was at this time the City realized that in order for things to change they needed to become the “developer”. The City purchased the NE corner from the County and proceeded to install over $1,000,000 in infrastructure. The land was platted, the utilities and streets installed – we were ready to go. Even with all the attempts to spur housing development in Crookston there was still very little progress. It was at this time the City implemented a Housing Incentive Program. This included waiving fees, giving away supplies and abating the city share of the property taxes. In 2004 the City invited the County and School District to participate in abating taxes and they agreed to do so.

The goals of the Housing Incentive Program have remained constant through the years that it has been in force:

1. Increase tax base
2. Increase population
3. Increase student population for our schools
4. Fill vacant lots

To date, 53 parcels have qualified for the program. The homes that have been built under this program have an estimated market value of $4,639,300. We still have 18 parcels that have been purchased and have not completed construction. That would add another $3,000,000 to the tax base. What does this mean for our City, County and School District? It means a collaborative effort by all three entities to grow this “Community”. It means a larger tax base and we all win with that one. That means more tax base to spread each levy over and less tax burden per parcel. It means an increase in population. It means an increase in student population for our schools which in turn will mean additional state funding for our schools. And it means filling vacant lots around town. The fewer vacant, non-tax paying lots the better for all of us. For more information regarding the Housing Incentive Program contact Betty Arvidson at 281-4503 or Kari Thompson at 281-8053.

Learn more about Crookston's Housing Incentive Program >>>