Return to the Economic Development Index
All community wide financial assistance to business is based on a case by case basis. Fairmont has been aggressive in helping to assist its business community grow. In the past, Fairmont had 21 active Tax Increment Financing (TIF) projects.Today, ten are active. These projects have ranged from large 80,000 square foot industrial expansions, to downtown redevelopment to warehouse and distribution, a $1.1 million 225,000 square foot commercial and retail mall redevelopment, a 28,000 square foot professional and health care center with out-patient surgery and a $75 million soybean processing plant.
Fairmont has approved 2 Job Opportunity Building Zones. One is a $150 million dollar ethanol plant. The second is a 30,000 square foot five acre expansion of warehouse and distribution.
The City operates a $1.3 Million Revolving Loan Fund. At the present time funds are available for individual projects.
The City owns Industrial Park real estate with many different options available for land acquisition.
Below is a listing of the numerous programs available to improve Fairmont's business climate and make investment profitable for your business and the community.
A wide variety of special financing programs are available to qualifying businesses. The majority of the programs concentrate on providing assistance to industrial types of firms but there are exceptions. The following brief description can be used as a guide to the various governmental financing programs.
1. Local Programsa. Job Opportunity Building Zone (JOBZ)
Allows up to 12 years of property tax exemptions on all new improvements, corporate state income tax, sales and use taxes and tax credits for qualifying businesses. For further information please contact:
Michael Humpal, CEcD
Assistant City Administrator
Fairmont Economic Development Authority
P.O. Box 751
100 Downtown Plaza
Fairmont, MN 56031
507-238-9461
b. City Revolving Loan Fund
Through the Fairmont Economic Development Authority (FEDA), reduced interest rate loans are available on a matching basis for business expansion projects. The loans are normally subordinated and the criteria is adaptable but is normally 25% of the project cost up to $75,000. Other requirements include assistance can not exceed $10,000 for each FTE (full time equivalent) created or retained. The interest rate and term are negotiable within a general range. For further information please contact:
Michael Humpal, CEcD
Assistant City Administrator
Fairmont Economic Development Authority
P.O. Box 751
100 Downtown Plaza
Fairmont, MN 56031
507-238-9461
c. Tax Increment Financing
Tax increment financing (TIF) programs are available for those businesses where physical expansion will result in a significant increase in normal property taxes. The program is tightly regulated by the State. For further information please contact:
Michael Humpal, CEcD
Assistant City Administrator
Fairmont Economic Development Authority
P.O. Box 751
100 Downtown Plaza
Fairmont, MN 56031
507-238-9461
d. Fairmont Business Development Center
The Fairmont Economic Development Authority (FEDA) has acquired an industrial building for use as an industrial incubator. The Fairmont Business Development Center is still in development stages but will feature common support services, common use areas and rental space at phased costs that begin below market rate. Over 12,000 square feet of space is available with loading docks, exterior truck access, concrete parking area and other related amenities. For further information please contact:
Michael Humpal, CEcD
Assistant City Administrator
Fairmont Economic Development Authority
P.O. Box 751
100 Downtown Plaza
Fairmont, MN 56031
507-238-9461
e. Equity Investors
The Fairmont area has a large number of successful individuals and/or companies that regularly consider equity investment opportunities. The diversity and variation in the types of firms within the community makes it possible to evaluate any size of equity investment opportunity that may be proposed. For information about potential equity investment, please contact:
Michael Humpal, CEcD
Assistant City Administrator
Fairmont Economic Development Authority
P.O. Box 751
100 Downtown Plaza
Fairmont, MN 56031
507-238-9461
f. Minnesota Community Capital Fund (MCCF)
MCCF loans are competitively priced and offer the benefits of negotiable interest rates and terms. Loans are available to finance:
2. Regional
a. Region 9 Revolving Loan Fund
The Regional
Development Commission for this area operates a revolving loan program
specializing in assisting industrial types of projects. For further
information, please contact:
Region 9 Development Commission
410 South 5th Street
Mankato, MN 56001
507-387-5643
b. Southern Minnesota Initiative Foundation (SMIF)
The Initiative Fund for this area operates a revolving loan fund that can assist a variety of project types. For further information, please contact:
Executive Director
Southeastern Minnesota Initiative Fund
P.O. Box 570
Owatonna, MN 55060
507-455-3215
3. State Programs
a. Small Cities Program
The State of Minnesota through the Department of Employment and Economic Development (DEED) provides a matching business loan program that provides a grant to governmental units that is then lent to private business enterprises. Application is made through the individual cities or counties. For further information, contact the appropriate local governmental agency or DEED directly.
Department of Employment & Economic Development
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101
800-657-3858