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March 10, 2008 December 12, 2011 <br />Mounds View Business Toolbox <br />Internal Document <br />Page 9 of 10 <br />5) Business Improvement Partnership Loan Program <br />Purpose: <br />The City’s Economic Development Authority has a vested interest in helping <br />Mounds View businesses thrive and prosper while improving the aesthetics of <br />the commercial, industrial and retail sectors of the community. Accordingly, the <br />Mounds View Business Improvement Partnership Loan Program has been <br />established to partner with local businesses by providing 2% interest loans for <br />exterior and interior building improvements. Details regarding this program are <br />attached as Appendix B. <br /> <br />Who can apply? <br />Any business owner who has operated a facility or property located in Mounds <br />View for a minimum of two years. <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 Rebate Financing (TRF) <br />The City of Mounds View has adopted the attached policy (see Appendix C) <br />pertaining to Tax Rebate Financing (also known as Tax Abatement). An <br />abatement is a property tax repayment rather than an exemption from paying <br />property taxes. It is a method to finance up-front costs and provide additional <br />equity to a development or to finance a public improvement. For eligible <br />redevelopment and development projects, all or a portion of City real estate taxes <br />can be rebated for up to 15 or 20 years. Ramsey County and the Mounds View <br />School District can also rebate all or a portion of their share of real estate taxes. <br />If all three taxing jurisdictions participate, taxes may be rebated up to 20 years. <br /> <br />Purpose: <br />The fundamental purpose of Tax Rebate Financing in Mounds View is to <br />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 Tax Rebate Financing (TRF) <br />application and submits the application and the required $1,000 application fee to <br />the City’s Community Development Department. Economic Development staff <br />reviews and analyzes the information and presents it to the City’s Economic <br />Development Authority. The maximum applicants may abate is $200,000 per <br />year or up to 10% of the City’s levy. There is no minimum abatement or rebate.