FAIRMONT — Martin County commissioners on Tuesday approved a property tax abatement for CHS Inc., but with several revisions to the agreement, contingent on the approval of CHS.

The decision came after a lengthy public hearing.

CHS Inc. is proposing a $100 million project to increase capacity and equipment at its plant in Fairmont. It had asked for a 10-year tax abatement from the county, the city of Fairmont and Fairmont Area Schools. The City Council unanimously approved the tax abatement on Aug. 26. Last month, the Martin County Economic Development Authority recommended approval to the county board.

At the beginning of the public hearing, Commissioner Kathy Smith shared some information on the project, noting that the real property improvements as it relates to the proposed project is $5.3 million, which is the amount of taxable value that will be abated. CHS has estimated it will spend more than $3.1 million with local contractors and on materials for construction. If the project does not go through, the county, city and school district could lose about $140,000 in taxes annually.

Brandon Nordstrom, plant manager for the CHS site, and Tom Malecha, senior vice president of processing and food ingredients, were present to answer questions and share updated information on the project. Several residents who live near CHS in Fairmont were present to voice concerns.

Previous concerns that have arisen include an increase in truck traffic and the fact that the project will bring no new jobs with it. While some issues have been addressed, several citizens spoke up during the public hearing portion.

“I’m glad that they’re spending $100 million in Fairmont, but I don’t think they need the tax abatement money at this time. There’s other issues that need to be addressed first. Nothing has been done in 18 years so we’re a little leery of things getting done now,” said one resident.

That sentiment was expressed over and over again as concerned neighbors and other community members agreed they were not against the proposed project or opposed to the tax abatement, but said they would like to see changes made at the plant in Fairmont.

“We’re not against CHS, but we feel that our concerns have been ignored for 18 years,” another neighbor said, adding that they would like to see plans of where the staging area for trucks will be before the abatement is granted.

“Who are we supposed to call when we can’t get out of our driveway?” the neighbor added.

Commissioner Steve Flohrs asked if a planned 100-truck parking lot will be enough, to which Nordstrom replied that they do believe it is sufficient.

Another neighbor said CHS should consider garbage cans and restrooms for the drivers because there have been problems in the past with ditches full of garbage. The citizen said the ditches have been better recently, but wanted to make sure there are proper places and amenities for the drivers included in the plans.

“We are a member of the community,” Malecha said. “We built the plant with the plans that we agreed to have. It is an industrial site so there’s noise that comes with it and truck traffic that comes with it. We are in the industrial park so some of those things are inherent to the business that we operate. I can’t eliminate all noise and all truck traffic but we certainly would work to try to come up with solutions, but I can’t tell you exactly what that would be today.”

Malecha said they could look at dumpsters and maybe porta-potties for the drivers, but noted that those come with issues of their own. He said CHS cannot govern what the drivers do, considering they are not all their drivers.

“We’ve hired FFA and 4-H in the past to come and clean ditches and we’re certainly interested and willing to do things like that and support the larger community as a whole,” Malecha said.

Addressing the issues of privacy that had come up with some nearby neighbors of CHS, Commissioner Richard Koons said in order to go through with the abatement, he would like to see something done in writing that says CHS will put up a fence or tree shrubs to help with privacy.

“I’m in no way against CHS, but the good neighbor policy hasn’t worked for 18 years,” Koons said. “We need some assurance that these things are going to be a part of the plan. Is that something that you guys are willing to proceed with?”

Malecha said they are certainly willing to work with the neighbors.

A longtime local farmer and member of the EDA also said he is not against the project, but did not believe CHS should receive the abatement.

“If you’re going to vote yes and pass this abatement, I highly suggest you reconsider,” he said. “You’re throwing out a handout to CHS and a burn to the Martin County taxpayers, especially to the farmers who are in and have been in a financial crunch for the last five years …”

“An abatement is not something that would increase the property taxes for anyone else,” said Linsey Preuss, Fairmont’s economic development director. “It’s an incentive that we’re putting off the property taxes that we would receive until 10 years. It would not affect any other taxpayers.”

Another local farmer spoke up in favor of the project and said they cannot even believe the board was debating the issue.

“Just think, if they would expand the plant down the road and what it would do for Martin County. This tax abatement is not just a great thing for CHS, but if you do it for CHS and someone else wants to come in with a business, they’re going to look at this area. If you say no, they’re going to say, ‘Oh, I’ll go to Jackson County. Why would I even look at Martin County?’ This is $40,000 per year. This is nothing compared to the publicity that you’re going to get out of this. This [abatement] is a fantastic idea.”

Commissioner Elliot Belgard said CHS is the biggest taxpayer in Fairmont and the third-largest in the county. With the project, CHS will be the largest taxpayer in the county. Belgard said he does not want to see CHS leave, but he believes any action needs to be tabled until the board can address the concerns of the neighbors.

“I do think we need to hold their feet to the fire to do the improvements that we talked about,” he said.

Koons asked the CHS representatives if they would be OK with the board tabling the matter and coming back with a decision in two weeks after CHS’s legal team has read through the agreement.

“The longer it takes, that puts the decision at an issue. We have a construction time frame. We have winter. It is imperative that we make a decision as quickly as we can,” Malecha said.

Smith suggested the board go through each additional change one by one in the tax abatement and business subsidy agreement by and between Martin County and CHS Inc.

Several suggestions had come up after the last meeting, including the addition of the sentence: “The company will cause the design and construction of the parking lot so as to facilitate the staging of trucks and other vehicles on the tax abatement property.” And: “If the goals are not met in their entirety, the company agrees to repay all of the business subsidy to the county, plus interest set at the implicit price deflator defined by Minnesota statues.”

On Tuesday, the board also added language about adding some trees on the property line as privacy for neighbors.

“We want to make sure we have someone look at it and see what kind of trees are best. There’s maintenance to trees so I’m not opposed to it, but I don’t want to be bound to something. I don’t know how we work through that, but I’m willing to work with the county,” Malecha said.

Koons said the county does not need a specific plan as far as adding trees, but it would like to see CHS engage in attempting to do something to address privacy issues for the neighbors.

The Fairmont School Board will hold a public hearing on the proposed CHS tax abatement at 5 p.m. Sept. 10.