Site/Financial Incentives
Parcels in the Laskin Energy Park are eligible for the State of Minnesotaâ??s Job Opportunity Building Zone tax incentive program. Minnesota Job Opportunity Building Zones (JOBZ) can provide state tax exemptions to eligible companies expanding into designated zones. State tax exemptions include corporate franchise tax, income tax for operators or investors, sales tax on goods and services used in the zone if the goods and services are purchased during the duration of the zone, property tax on commercial and industrial improvements, wind energy production tax and employment tax credit for high paying jobs.
The City of Hoyt Lakes has a proven history in utilizing eligible local, state, and federal funding opportunities to support economic development projects. The East Range Joint Powers works cooperatively with all local, regional, state, and private stakeholders to maximize leverage of all available incentive programs to create one comprehensive development project package. New potential businesses are provided maximum financial and other forms of assistance to ensure convenient and timely processing. The following information provides a summary of such cooperative initiatives:
Financial Incentives
The programs listed below are designed to stimulate private investment and create and maintain productive, permanent skilled employment through the establishment of new businesses or the expansion of existing businesses in the private sector.
Arrowhead Regional Development Commission (ARDC) revolving loan fund can provide subordinated loans up $100,000 at below market interest rates for eligible borrowers.
The Iron Range Resources' business loan program can provide up to $250,000 and is limited to businesses, which reside or will reside within the Taconite Assistance Area (TAA). The agency can also provide job creation grants to businesses based on the project's economic impact.
Minnesota Business Finance Corporation (MBFC) offers second mortgage financing through the SBA's 504 Loan Program. Loans finance fixed asset purchases at fixed interest rates for 10 and 20-year terms and can fund up to 40% of eligible project costs.
The Minnesota Community Capital Fund (MCCF) is a statewide loan pool offering flexible financing for up to $2.5 million for eligible projects in areas served by MCCF members. MCCF members serving the Laskin Energy Park area are St. Louis County, East Range Joint Powers Board and Minnesota Power.
The Minnesota Job Skills Partnership can provide a grant of up to $400,000 for job training through a regional educational institution.
Northeast Entrepreneur Fund can provide subordinated loans up to $100,000 for eligible borrowers. The fund also provides valuable technical assistance services to businesses in the area of business plan development.
The Northland Foundation can provide project financing for up to $500,000 at an interest rate below market for eligible borrowers.
The Small Business Administration (SBA) Loan Guaranty Program can provide local financial institutions with loan guarantees up to $1 million. The program allows financial institutions to provide loans with more flexible terms.
- Potential Funding Sources from Individual Communities
- Local Financial Institutions
- Tax Abatement / Tax Increment Financing
- Low Interest Loan / Deferred Loan
- Community Development Block Grant Funding / Revolving Loan Fund (St. Louis County)
- Grants (local & federal)
- Community & Technical College training programs
- Communities assist in ascertaining land, building space, infrastructure, utilities, access roads and parking.
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