8.1 SR 10-18-2021 - Laserfiche WebLink

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K.� Small Cities Development Program The Small Cities Development Program (SCDP) is admin- istered through the Minnesota Department Employment and Economic Development. Cities with fewer than 50,000 residents and counties with fewer than 200,000 residents are eligible for this program which provides grants for housing, public infrastructure, and commercial rehabilita- tion projects. Grant funding is divided into three categories: (1) Housing Grants, in which local governments lend funds for rehabilitating local housing stock of owner -occupied, rental, single-family, or multiple -family housing; (2) Public Facility Grants for wastewater treatment projects, such as collection systems, treatment plants, wells, water towers, and distribution systems; (3) and Comprehensive Grants, which may fund housing and public facility projects, or economic development projects in which funding is directed to building, rehabilitation related to fagade improvements, code violations, and health and safety issues. The maximum grant award for a single purpose project is $600,000, and the maximum grant award for a comprehensive project is $1.4 million. Historic Rehabilitation Tax Credit Historic Rehabilitation Tax Credits (HTC) are subsidies used for the preservation of historically significant build- ings and/or neighborhoods. The Federal Historic Tax Credit provides a 20% federal income-tax credit to renovate income -producing, historic buildings. Property owners, developers and architects must apply for the tax credit through the Minnesota State Historic Preservation Office (SHPO) and are encouraged to work with SHPO staff to ensure that appropriate rehabilitation measures are followed. IL I. - 4 Tax Increment Financing Tax Increment Financing (TIF) funding is used to help fund the redevelopment of areas within a community which qualify as blighted, in need of conservation, or an area of economic development. TIF utilizes future property tax revenues generated within a designated area or district, to pay for improvements, and incentivize continued reinvest- ment. TIF dollars can typically be used for infrastructure, streetscaping, public improvements, land assemblage, and offsetting the costs of development. In Elk River, TIF's are categorized as Redevelopment, Housing (both last up to 26 years, maximum), Soil Condition (21years maximum), Renewal and Renovation (16), and Economic Development Districts (9). Of all the TIF districts, the Economic Devel- opment District is most often the one limited to a lesser term. Economic Development Districts are "incentive" intended to get a business to locate in a community. In the other districts, the costs are easily identifiable and usually significant such as demolition, relocation, environmental remediation, and the cost differential between market rate and income/rent restricted housing. Coronavirus State and Local Fiscal Recovery Funds The American Rescue Plan Act established the Coronavirus State Fiscal Recovery Fund (CSFRF) and Coronavirus Local Fiscal Recovery Fund (CLFRF), which provide a combined $45.57 billion nationally to metropolitan city governments to help turn the tide on the pandemic, address economic fallout, and lay the foundation for a strong and equitable recovery. The State of Minnesota will be receiving over $2.8 billion from the CSFRF, and distribution to Elk River would 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