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June 11, 2018 <br />December 12, 2011 Mounds <br />View Business Growth Toolbox <br /> <br /> <br />How does the program work? <br />The City’s Economic Development Authority, in partnership with local banks, will <br />provide improvement loans to existing Mounds View businesses at a minimum of <br />$10,000 and a maximum of $50,000. The City participates by providing only half <br />of the loan amount at a 2% interest rate. <br /> <br />6) Tax AbatementRebate Financing (TRF) <br />The City of Mounds View has adopted the Business Subsidy attached pPolicy <br />(see Appendix AC) pertaining to Tax AbatementRebate Financing (also known <br />as Tax Abatement). An abatement is a property tax repayment rather than an <br />exemption from paying property taxes. It is a method to finance up-front costs <br />and provide additional equity to a development or to finance a public <br />improvement. For eligible redevelopment and development projects, all or a <br />portion of City real estate taxes can be rebated for up to 15 or 20 years. Ramsey <br />County and the Mounds View School District can also rebate all or a portion of <br />their share of real estate taxes. If all three taxing jurisdictions participate, taxes <br />may be rebated up to 20 years. <br /> <br />Purpose: <br />The fundamental purpose of Tax AbatementRebate Financing in Mounds View is <br />to encourage desirable development or redevelopment that would not otherwise <br />occur but for the assistance provided. <br /> <br />Who can apply? <br />Any developer or business owner with a facility or property located in Mounds <br />View, or any developer or business owner intending to construct a facility in <br />Mounds View. <br /> <br />How does the program work? <br />The developer or business owner completes a Public Financing Assistance Tax <br />Rebate Financing (TRF) application and submits the application and the required <br />initial non-refundable $31,000 application fee to the City’s Business Development <br />CoordinatorCommunity Development Department. Economic Development staff <br />in coordination with the City’s financial consultant reviews and analyzes the <br />information and presents it to the City’s Economic Development Authority. If the <br />EDA & the City’s financial consultant determine that an Abatement is warranted <br />then the applicant submits the full Public Financing Assistance Application and <br />the $10,000 fee for formal consideration and processing. The maximum amount <br />applicants may abate is $200,000 per year or up to 10% of the City’s levy. There <br />is no minimum abatement or rebate. <br /> <br />7) Tax Increment Financing (TIF) <br />The City of Mounds View has adopted the attached policy (see Appendix AD) <br />pertaining to Tax Increment Financing (TIF). TIF is considered the premier tool <br />for economic development in Minnesota. Since 1986 the biggest single <br />development program in the City of Mounds View’s Toolbox has been the use of <br />Tax Increment Financing (TIF). TIF, in brief, is the ability to capture and use all <br />increased local property tax revenues from new development within a defined <br />Formatted: Not Highlight <br />Formatted: Not Highlight