Xcel fund spending focuses on building infrastructure
When the former Fibrominn power plant was shut down, it left an economic and property tax hole in the city. Forty-five direct jobs, another 100 in support of its operations, and more than $830,00 in real estate taxes were lost. The primary goal of the $20 million in Xcel funds the city received is to fill those holes.
By Reed Anfinson
Publisher
Since it received $20 million in payments from Xcel Energy for the closing of the Benson Power (Fibrominn) electric generation plant, the city has spent nearly $11 million of it.
It has committed to spending just over $13 million toward projects ranging from infrastructure to economic development.
In June 2021, the City of Benson received a $3 million payment from Xcel Energy finalizing its $20 million obligation to the city meant to offset the loss of Fibrominn. It was paid in four installments over four years.
Those efforts are to focus on replacing the more than $830,000 in lost local real estate taxes, the 45 direct jobs at the plant and estimated 100 jobs that were associated with supporting its operations. The city’s share of those real estate taxes was $465,514 – about a quarter of what it once collected.
It was also intended to help the community replace the lost economic vitality the plant brought to the community. The Minnesota Department of Employment and Economic Development estimated Benson Power would generate $8 to $10 million in economic impact for the area.
So far, pursuit of the Nature Energy project, assistance for Custom Roto-Mold’s expansion, and purchase of land at Benson’s southern edge have been the primary direct economic development expenditures. The city has also given funds to the Swift County-Benson Health Services, now CentraCare-Benson, for improvements.
The major use of funds from Xcel’s funds have gone toward infrastructure spending
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