Local Incentives

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 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

1,000 Lakes Sporting Goods 331 NW 4th Street, Grand Rapids, MN

Rowe Funeral Home 510 NW 1st Avenue, Grand Rapids, MN

Redevelopment Fund Loan Program

In partnership with the Blandin Foundation, GREDA has established a $1,000,000 Redevelopment Loan Fund for the purpose of providing short-term bridge financing, or gap financing in conjunction with private lending to lending to developers for projects that will result in the redevelopment of blighted or substandard buildings and the creation of new or improved commercial or residential development.

Used in conjunction with private lending as a subordinate second mortgage, loans may be amortized over a 20-year term, with a five-year balloon payment. Interest rates charged to the Redevelopment Fund loans will range between 0% and 0.25% over Prime Rate, subject to GREDA and Foundation approval, depending upon project specifics.

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

Block 37 (Downtown Grand Rapids- pre-project)

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

 

 

Oakwood Terrace TIF Project			Crystal Lake Estates TIF Project
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.