The Frazee Economic Development Authority (EDA) has developed a Downtown Retail Center. The Center was completed in ____ is anchored by Seip Drug, a longtime Frazee pharmacy. There are three (3) suites available at competitive lease prices with open plan and can be "finished to suit" the lessor. There is EDA funding available to assist with finishing the suites. See the brochure for more site details.
TIF is a method of financing real estate develpoment costs to assist with the construction of buildings or other private improvements, as well as other types of development. Project eligibility is determined individually depending on the size and scope of the project. TIF uses the additional property taxes paid as a result of develoment and increased property value to pay for a portion of the development costs.
Tax abatement is the process by which a portion of property taxes are rebated back to the property owner, who then uses it to help offset development or redeveopment costs. Tax abatement is simpler and less restrictive than tax increment financing and is quite useful for smaller projects. Project eligibility is determined individually depending on the size and scope of the project.
The West Central Initiative (WCI) organization is located in Fergus Falls, Minnesota and serves West Central Minnesota Counties including Becker County. As a part of its activities, it offers financing assistance to commercial and industrial businesses. Financing assistance is provided through loans and is typically used as "gap financing" for projects. Loan programs include: Small Enterprise Loans, Business and Industry Loans, Access to Capital Loans and Child Care Loans. Information on the loan programs as well as staff contacts can be found on the WCI website www.westcentralinitiative.org.
The Microenterprise Revoloving Loan Fund was designed for start-up, newly established, or growing businesses. Administered by Community and Economic Development Associates (CEDA), a 501 (c)(3) non-profit corporation, this loan is available to qualified entrepreneurs in amounts up to $35,000 and can be used for seed capital, working capital, inventory, equipment, real estate, building renovation, and expansion. Based on the items financed, loan terms generally do not exceed 6 years and the interest rates are up to 6%.
Ineligible uses of loan proceeds include, debt refinancing, routine maintenance, any business that derives the majority of their income from restaurant or liquor sales, among othes.
The Minnesota Investment Fund provides grants to help add new workers and retain high-quality jobs on a statewide basis. The focus is on industrial, manufacturing, and technology-related industries to increase the local and state tax base and improve the economic vitality for all Minnesota citizens. At least 50% of total project costs must be privately financed through owner equity and other lending sources (most applications selected for funding have at last 70% private financing).
The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Companies deemed elibible to participate may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements. In some cases, companies may receive awards of up to $2 million.
Minnesota's new-and-improved research and develoment tax credit doubles the size of the credit and also expands the credit to include more business entities. The tax credit for R&D expenditures is 10%, up to the first $2 million in eligible expenses above $2 million. Beginning with tax year 2010, individuals involved in partnerships, S-corporations and limited liability companies are allowed to claim the credit against their individual income taxes. This opens up the tax credt to more small and medium-sized businesses.
Minnesota's R&D credits are refundable, which means if the tax credits exceed the tax liability, the state will issue a refund payment. Businesses do not need income tax liability or revenue to claim the credit, as long as they have qualified research and development expenditures (as defined in Section 41(d) of the Federal Internal Revenue Code).
This program provides a maximum of $5 million to any single business and generally requires that 20% of project costs be privately financed. Eligible companies include manufacturing and industrial businesses located or intending to locate in Minnesota, as defined by Small Busines Administration size and eligibility standards (generally, those with 500 employees or fewer). Loan funds are raised through the issuance of industrial development bonds. Interest rates are the market rate for similar securities at the time bonds are sold. Rates are fixed for the term of the loan. Real estate loans are for a maximu of 20 years. Equipment loans are for a maximum of 10 years. Collateral requirements include the first morgage on real property or equipment financed under the program and personal guarantees of owners. In some cases, additional security in the form of other liens or guarantees may be required. Bond issuance costs of 4% are capitalized with the loan principal, and 10% of bond issue must be escrowed.
These loans are made by the Minnesota Agricultural and Economic Development Board (MAEDB). Applications are accepted year-round but must be received by the first of each month to be considered at that month's MAEDB meeting.
The City of Frazee offers incentives to any new home constructed within city limits, including free water and sewer consumption, recycling and garbage for ONE FULL YEAR. The garbage toter is a 35 gallon, any larger size is not applicable to this program. The City will charge the base fee for water and sewer, storm water run-off, and the user fee per month, these can all be found on the latest fee schedule. As a new homeowner, this means dollars in your pocket!
Contact Stephanie Poegel, City Administrator for information on how to apply: firstname.lastname@example.org, 218-334-4991