Lack of reeling for keeps spurs economic relief for Mille Lacs Lake area

The decline of the walleye population in Mille Lacs Lake has some tourists searching the other 10,000 lakes for their fishing fun. And until the struggling population can stabilize, legislators want to make sure surrounding businesses can weather the storm.

HF3458, sponsored by Rep. Sondra Erickson (R-Princeton), would send economic relief to businesses within the 14 cities and towns surrounding the lake.

Mille Lacs County Administrator Pat Oman testifies April 6 before the Property Tax and Local Government Finance Division about who and what area would receive property tax relief around Mille Lacs Lake in Aitkin, Crow Wing and Mille Lacs counties. Photo by Tom Olmscheid

With a one-time appropriation of $5 million for Fiscal Year 2017, the bill would require Mille Lacs County to develop grant and loan approval criteria for interest-free or forgivable loans to businesses with documented reductions in gross profit over any two-year period since 2010. Loans would not exceed $100,000 per business, per year. It would also authorize Aitkin, Crow Wing and Mille Lacs counties to abate taxes payable in 2016 for approved qualifiers.

Approved by the House Job Growth and Energy Affordability Policy and Finance Committee Wednesday, it now moves to the House Taxes Committee. There is no Senate companion.

Tina Chapman, executive director of the Mille Lacs Area Tourism Council, told the committee how the lack of walleye fishing, coupled with low snow amounts and thin ice last winter, have substantially impacted area tourism.

“We are looking to survive and weather a storm that we did nothing to create. We can market the heck out of the area, but if there is nothing to come for then it’s wasted,” she said. “Economic relief goes hand-in-hand with investing in the area; we need a hand-up, not a handout.”

Committee members expressed a desire to tighten the bill’s language along its journey regarding businesses having a specific business plan and loan repayments.

“I certainly hope this bill is treated better than the Iron Range bill was,” said Rep. Tim Mahoney (DFL-St. Paul).