OTHERAPPROVED

Faribault City Council Agenda November 2025

Faribault, Rice County Approve KGP Headquarters Tax Abatement

City: estimated $262,216.00 (not-to-exceed $400,000), County: estimated $169,106.00 (not-to-exceed $180,000.00); Estimated cumulative maximum: $580,000.00 (City and County combined)City of FaribaultKGP TELECOMMUNICATIONS LLCNovember 18, 2025

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Description

The City of Faribault and Rice County approved a contract for private development with KGP Telecommunications LLC, granting up to $580,000 in cumulative property tax abatement over 10 years. This agreement supports the relocation and construction of KGP's new headquarters in downtown Faribault, contingent on job creation and occupancy terms. The semi-annual abatement payments will begin in August 2028 and cease by February 2037.

Contract Details

Contract Amount

City: estimated $262,216.00 (not-to-exceed $400,000), County: estimated $169,106.00 (not-to-exceed $180,000.00); Estimated cumulative maximum: $580,000.00 (City and County combined)

Vendor

KGP TELECOMMUNICATIONS LLC

Agency

City of Faribault, MN

Contract Type

OTHER

Document Date

November 18, 2025

Contract Term

August 1, 2028 – February 1, 2037 (10 years, semi-annual payments)

Renewal Date

2037-02-01

Renewal Info

Contract term expires earlier if $580,000 in cumulative payments is reached; modifications require written amendment with all parties; renewal or extension not automatic.