5.1. PCSR 08-24-2021 - Laserfiche WebLink

Home Browse Search

a ups Field r � r rf Small Cities Development Program Tax Increment Financing The Small Cities Development Program(SCDP)is admin- Tax Increment Financing(TIF)funding is used to help fund istered through the Minnesota Department Employment the redevelopment of areas within a community which and Economic Development.Cities with fewer than 50,000 qualify as blighted,in need of conservation,or an area of residents and counties with fewer than 200,000 residents economic development.TIF utilizes future property tax are eligible for this program which provides grants for revenues generated within a designated area or district,to housing,public infrastructure,and commercial rehabilita- pay for improvements,and incentivize continued reinvest- tion projects.Grant funding is divided into three categories: ment.TIF dollars can typically be used for infrastructure, (1)Housing Grants,in which local governments lend funds streetscaping,public improvements,land assemblage,and for rehabilitating local housing stock of owner-occupied, offsetting the costs of development. In Elk River,TIF's are rental,single-family,or multiple-family housing;(2)Public categorized as Redevelopment,Housing(both last up to Facility Grants for wastewater treatment projects,such as 26 years,maximum),Soil Condition(21 years maximum), collection systems,treatment plants,wells,water towers, Renewal and Renovation(16),and Economic Development and distribution systems;(3)and Comprehensive Grants, Districts(9).Of all the TIF districts,the Economic Devel- which may fund housing and public facility projects, opment District is most often the one limited to a lesser or economic development projects in which funding term.Economic Development Districts are"incentive" is directed to building,rehabilitation related to faQade intended to get a business to locate in a community.In the improvements,code violations,and health and safety other districts,the costs are easily identifiable and usually issues.The maximum grant award for a single purpose significant such as demolition,relocation,environmental project is$600,000,and the maximum grant award for a remediation,and the cost differential between market rate comprehensive project is$1.4 million. and income/rent restricted housing. Historic Rehabilitation Tax Credit Coronavirus State and Local Historic Rehabilitation Tax Credits(HTC)are subsidies Fiscal Recovery Funds used for the preservation of historically significant build- The American Rescue Plan Act established the Coronavirus ings and/or neighborhoods.The Federal Historic Tax Credit State Fiscal Recovery Fund(CSFRF)and Coronavirus Local provides a 209/6 federal income-tax credit to renovate Fiscal Recovery Fund(CLFRF),which provide a combined income-producing,historic buildings.Property owners, $45.57 billion nationally to metropolitan city governments developers and architects must apply for the tax credit to help turn the tide on the pandemic,address economic through the Minnesota State Historic Preservation Office fallout,and lay the foundation for a strong and equitable (SHPO)and are encouraged to work with SHPO staff to recovery.The State of Minnesota will be receiving over$2.8 ensure that appropriate rehabilitation measures are billion from the CSFRF ,and distribution to Elk River would followed. be based on the proportion of the City's population relative to other Non-entitlement units of local government(NEU) in the state-which are local governments of fewer than 50,000 residents. Elk River Comprehensive Plan•Implementation Plan 121 DRAFT FOR REVIEW ONLY