Laserfiche WebLink
ver <br />MEMORANDUM <br />TO: Heritage Preservation Commission <br />FROM: Heidi Steinmetz, Assistant Director of Economic Development <br />DATE: November 4, 2004 <br />SUBJECT: Financing Options for Rehabilitation of Buildings Located <br />Within the Central Business District <br />Attachments <br />• Incentives: A Guide to the Federal Historic Preservation Tax Incentives Program, <br />National Park Service lY>ebsite <br />• State Tax Incentives for Historic Preservation: A State-by-State Summary, National <br />Trust for Historic Preservation Website <br />• City of Elk River Micro Loan Policy & Guidelines <br />Background <br />At the September HPC meeting, the HPC requested a list of financing options that may be <br />available to assist with the rehabilitation of Elk River buildings located in the Central <br />Business District. The HPC indicated that the list would be used in preparation of a <br />potential Historic District Designation. The HPC discussed the option that the designation <br />be a joint HPC, HRA and EDA effort. <br />Financing Options <br />Federal Financing <br />The Federal Historic Preservation Tax Incentives Program allows a 20% tax credit for the <br />rehabilitation of historic buildings. The attached excerpts from the National Park Service <br />Website include questions and answers about the 20% tax credit. <br />State Financing <br />The attached State-by-State Summary of State Tax Incentives for Historic Preservation <br />indicates that Minnesota has not used tax incentives for the rehabilitation of historic <br />buildings as extensively as other states. <br />City Tax Increment Financing & Tax Abatement Financing <br />The qualifications of the City of Elk River Tax Increment Financing and Tax Abatement <br />Financing Policies do include "removal of blight or the rehabilitation of a high profile or <br />