By Ryan Gueningsman
The State of Minnesota has given cities temporary authority to stimulate construction through the use of excess Tax Increment Finance (TIF) funds.
The City of Delano has approximately $150,000 in excess TIF that will be available for commercial, industrial, and residential construction in up to $5,000 grants, according to a memo from the city.
To distribute these funds, the City of Delano has established the Development Incentive Program (DIP) that will partially offset infrastructure charges associated with new commercial, industrial, and residential development, and commercial and industrial redevelopment within the City of Delano.
The state has mandated that all projects eligible for these DIP funds meet the following requirements:
The assistance to private development must result in the construction or substantial rehabilitation of buildings and ancillary facilities, if doing so will create or retain jobs in the state, including construction jobs, and construction commences before July 1, 2011, and would not commence before that date without assistance; and further, the City of Delano has implemented the following requirements to ensure equity of DIP funds in Delano:
• The project must be within Delano’s corporate limits.
• DIP funds shall only apply to city infrastructure charges (SAC, WAC, etc.) associated with construction.
• DIP fund applicants may not receive other municipal financing incentives, such as TIF.
• Ten DIP grants will be reserved for commercial/industrial development or expansion projects, prior to Oct. 31, 2010
• Residential DIP grant funding will be reserved for new home construction in the following developments prior to Oct. 31, 2010.
(2) Clover Springs (all additions);
(2) Fox Meadows (all additions);
(2) Highland Ridge (all additions);
(2) Parkview Hills (all additions);
(2) Westridge Hills (all additions).
• The remaining 10 DIP grant funds may be used for any commercial, industrial, or residential development, prior to Oct. 31, 2010.
• No person or entity may apply for more than two DIP grant funds prior to Oct. 31, 2010.
• On Nov. 1, 2010, limitations on the use of DIP funds will be lifted and considered in the order in which the applications are received.
Applications for DIP grants are available at the City of Delano. All projects must begin no later than June 30, 2011.
“The program essentially offers 30, $5,000 grants to offset infrastructure costs (SAC, WAC) associated with expansion and new construction,” commented Will Haack of the Delano Area Chamber of Commerce Economic Development Committee.
For more information on this program, contact Phil Kern at the City of Delano offices by calling (763) 972-0550.