Five border cities would share $1 million annually

Five communities along Minnesota’s western border would be able to count on $1 million annually to help them compete economically with neighboring South and North Dakota cities, under a bill sponsored by Rep. Debra Kiel (R-Crookston).

Rep. Debra Kiel

HF894 would make existing border cities programs providing tax breaks to local businesses permanent, through enterprise or development zones.

The cities that would qualify for the funds in the bill are Breckenridge, Dilworth, East Grand Forks, Moorhead and Ortonville.

The House Greater Minnesota Economic and Workforce Development Policy Committee referred HF894 to the House Job Growth and Energy Affordability Policy and Finance Committee.

Competing with often bigger cities in the Dakotas is a struggle for Minnesota communities, said Scott Hutchins, Moorhead deputy city manager. “Fargo is not only the biggest city in North Dakota, but it is an economic juggernaut.”

Among the factors making the Dakotas desirable for businesses are more affordable property taxes and workers’ compensation costs.

Rep. Tim Mahoney (DFL-St. Paul) took issue with the workers’ compensation comparison. “North Dakota is an insult to worker’s comp,” he said, citing lower rates of returning to work and higher rates of bankruptcy for injured workers.

The companion, SF907, sponsored by Sen. Kent Eken (DFL-Twin Valley), awaits action by the Senate Taxes Committee.