AUSTIN, MINN. – During a school board meeting last week, the Austin Public School Board voted to deny a tax abatement request by Hormel Foods for a child care center in Austin, Minn. 

Before this vote, the Austin City Council and the Mower County Board of Commissioners approved the tax abatement request, according to earlier reporting to the Austin Daily Herald.

However, the school board voted down the request 5-2. 

In an initiative available on the school board website, Hormel’s child care center was estimated to cost $5 million and would create 23 new jobs. The center would take care of 130 children of Hormel workers.

The company said that the land for the project was purchased in January, with construction scheduled to start in April 2023. It plans to have the center open by April 2024.

Following the vote, Wendy Watkins, chief communications officer for Hormel, explained the company’s position on the school board’s vote with MEAT+POULTRY. 

“We are very disappointed that the Austin Public School Board chose not to support a very important initiative for the community of Austin,” Watkins said. “Hormel Foods has, once again, made a large commitment to the Austin community in order to address a longtime, well-known need for so many families. This project is an opportunity for the school board to be part of a solution to fill the childcare gap that exists. 

“It is also important to note that there are no tax implications to taxpayers, and in fact, there is a positive economic benefit to the community in terms of additional jobs and families moving to or staying in the community due to child care opportunities. We appreciate the support we have received from the City of Austin and Mower County as we work to meet the needs and advance the community of Austin.”