Benson considers study to assist with developing business park

By Reed Anfinson
Publisher
Back in April 2020, the City of Benson purchased 127 acres of land adjacent to its southern border for future economic development for $328,000 from Alyn and Diane Sylte.
Funds for the purchase came from the Xcel Energy $20 million payment to Benson for economic development to replace the loss of Benson Power, formerly known as Fibrominn. Xcel had sought the closure of the power plant that used turkey manure and wood chips to generate 55 megawatts of electric power.
However, the cost of producing the renewable energy from organic materials had become vastly more expensive than energy produced by wind and solar.
To gain the city’s support for closing the plant, Xcel agreed to pay Benson $20 million for future economic development. It would help replace the more than 40 jobs at the plant and more than 100 jobs associated with its operations.
The county, city and District 777 lost over $831,000 in real estate taxes when the plant was closed and much of it eventually demolished. Xcel also agreed to pay two years of property taxes following the demolition of the plant’s generating facilities.
There are now discussions underway with several entities about building on the land purchased from the Sylties, among them Agralite Cooperative. Meanwhile, the city earns income of the land through a leasing the land to a farmer.
At Monday’s Benson Economic Development Authority (EDA) meeting, Kasey and Kordell Van Heuvelen asked the EDA to consider selling 40 to 50 acres of the land to them. They told the EDA the land would help them connect farmland they own to the north and south of the city property.
 
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