Governmental Finance Programs
Incentives
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. Currently, there are 21 active Tax Increment
Financing (TIF) projects. 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
center with out-patient surgery available and a $75 Million soybean processing
plant.
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.
Governmental Finance
Programs
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
Programs
a. 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:
·
Fixed assets
·
New building
construction
·
Building
remodeling/renovations
·
Leasehold
improvement
·
Business
acquisitions
·
Machinery &
equipment purchases, renovations, and moving expenses.
·
Working capital
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:
Mr.
Troy BonKourske
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
121
East 7th Place
500
Metro Square
St.
Paul, MN 55101-1421
612-297-1844
800-657-3858