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Local Incentives


 In addition to the many grant and loan programs, obtainable through state, federal and non-profit agencies which GREDA will pursue on your behalf, GREDA and the City of Grand Rapids offer a variety of local incentives to qualified businesses. GREDA Staff is available to confidentially discuss any of these and other programs to determine if they match your business needs. Some of the local incentives offered by GREDA and the City are listed as follows:

Commercial Building Improvement Loan Program (CBIL)

GREDA administers the CBIL Program, a revolving loan fund providing below market rate loans of up to $40,000 to qualified businesses interested in making improvements or additions to their building, or are planning new business construction. To lessen the initial financial burden to a business, Program loans are amortized at an interest rate of 4% over a 20 year period with a 5 year balloon. For additional CBIL information or to download an application form, select below.

CBIL Program Guidelines

CBIL Application

Sholom R. Blake, CPA Grand Rapids, Minnesota

Sholom R. Blake, CPA
16 NE 3rd Street, Grand Rapids, MN

         

Brewed Awakenings Coffeehouse in Grand Rapids Minnesota

Brewed Awakenings
24 NE 4th Street, Grand Rapids, MN

 

Downtown Property Acquisition Loan Program

GREDA, in partnership with the C.K. Blandin Foundation, has established a $1,000,000 fund, residing at the Foundation, to allow GREDA to provide short term bridge financing to developers for the purpose of property acquisition and other expenses related to downtown redevelopment.

These loans are to be replaced by private commercial financing at the earliest point possible.  The interest rate charged under these GREDA loans is to be similar to what a commercial construction loan rate would be when the developer has obtained a sufficient level of tenant commitment for the redeveloped space and would qualify for conventional financing.

Tax Increment Financing (TIF) & Economic Development Tax Abatement

GREDA and the City of Grand Rapids have utilized and are willing to consider additional use of the TIF public development financing tool to overcome financial barriers that would have precluded private investment in projects that meet public purposes or objectives such as:

    • Redevelop areas occupied with substandard buildings
    • Build housing for low-income and moderate-income families
    • Clean up pollution
    • Provide general economic development incentives
    • Finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements

old block 37 rear facades

Block 37 (Downtown Grand Rapids- pre-project)

   

block37 sept-2011

Block 37 TIF Project

 

GREDA staff is available to confidentially discuss your project to determine if it may qualify for one of the following types of TIF districts permitted by Minnesota statutes:

TIF District Type

Duration Limit (after receipt of first increment)

Geographic Areas That Quality

Permitted Uses of Increments

Compact Development 25 years

- 70% occupied by buildings
- planned development increases the square footage of C/I buildings by three times or more

- Land acquisition and site preparation
- Public infrastructure except roads, parking, or similar to service passenger vehicles

Economic Development 8 years

No restrictions

- Manufacturing
- Warehousing
- R&D facilities
- Telemarketing
- Tourism in qualifying counties
- Commercial developments in small cities

Housing 25 years

No restrictions

Housing for low- or moderate-income renters or homeowners

Hazardous Substance Subdistricts 25 years

Parcels in a TIF district containing polluted sites and contiguous parcels

Site acquisition and cleanup

Redevelopment 25 years

- 70% occupied by buildings, 50% of which are substandard or
- certain rail-yards
- tank facilities

Correction of conditions justifying creating district

Renewal and Renovation 15 years

70% occupied by buildings, 20% of which are substandard and another 30% require renovation

Correction of conditions justifying creating district

Soils Condition 20 years

Site contains pollution and cost of cleanup exceeds lesser of $2/sq. ft. or the fair market value of the land

Site acquisition and cleanup

 

 

oakwood2

Oakwood Terrace TIF Project

   

crystalestates

Crystal Lake Estates TIF Project


1old hosp.2 web

Grand Plaza TIF Project

Economic Development Tax Abatement

Consistent with the GREDA/City Business Subsidy Policy, the City of Grand Rapids will consider the use of economic development tax abatement for a broad range of projects and purposes. Permitted uses of abatement include the following:

    • General economic development, such as increasing the tax base or the number of jobs in the area
    • Construction of public facilities or infrastructure (e.g., streets and roads)
    • Redevelopment of blighted areas
    • Providing access to services for residents (e.g., housing or retail would be common examples)
    • Deferring or phasing in a large (over 50 percent) property tax increase
    • Providing relief for businesses with estimated market value of $250,000 or less who have disrupted access due to public transportation projects

Industrial Revenue Bonds

The City can issue industrial revenue bonds to provide low interest financing for specific projects.  Revenue bonds can provide long term fixed rate financing for industrial manufacturing projects of up to Ten Million Dollars.  Projects can include: Start-ups or expansions in the industrial or manufacturing field and may pay for land and building acquisition, building construction, purchase of machinery and equipment. 

Land Write-Down

The established base pricing of GREDA industrial property includes an upfront write-down of approximately 70% of the developed land value.  In addition to the upfront write-down, the GREDA Land Pricing Policy allows for further price reductions by measuring the project’s extraordinary economic benefits.


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Grand Rapids -
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$258,599

Grand Rapids
This site is situated on a bluff with impressive views of the Mississippi River. Located in the Downtown, the site is in close proximity to shops, restaurants and professional and government services. The site is accessed by a new road
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