Local Funding

Opportunities

The Port Authority, City of Lake City and Goodhue County offer a number of financial resources to support businesses and spur economic growth in the Lake City community. This page provides you with an overview of the financial programs and incentives available through the Port Authority, City and County. For more information on any of our financial programs or incentives, reach out to the Port Authority and our staff can assist you.

Overview

Tax increment financing (TIF) is a program that allows the increase in assessed valuation and tax revenues attributed to the new development pay for eligible new development costs. The program is designed to encourage development that would not otherwise occur, and it is the joint responsibility of the City and Port Authority to assure the project would not occur “but for” the assistance provided through tax increment financing.

 

Eligible Uses for TIF:

Tax increment financing will be considered to assist private development only in those circumstances in which the proposed private projects meet one or more of the following uses:

    1. To develop blighted or under-utilized areas of the community;
    2. To meet the following housing-related uses:
      1. To provide a diversity of housing adjacent to the downtown area;
      2. To provide a variety of housing ownership alternatives and housing choices;
      3. To promote affordable housing for low- or moderate-income individuals; or
      4. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas.
    3. To remove blight and encourage redevelopment in the commercial and industrial areas of the community in order to encourage high levels of property maintenance and private reinvestment in those areas;
    4. To increase the tax base of the City in order to ensure the city’s long-term ability to provide adequate services for its residents while lessening the reliance on residential property tax;
    5. To retain local jobs, increase the local job base, and provide diversity in that job base;
    6. To increase the local business and industrial market potential of the City;
    7. To provide adequate short-term business and shopper parking, and resident parking;
    8. To encourage additional unsubsidized private development in the area, either directly or through secondary “spin-off” development;
    9. To offset increased costs of redevelopment, over and above those costs that a developer would incur in normal urban and suburban development;
    10. To accelerate the development process and to achieve development on sites which would not be developed without this assistance; or
  1. To meet other uses of public policy, as adopted by the City/Port Authority from time to time, including promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government, etc.

Process

Please reach out to the Lake City Port Authority Director or City Administrator to begin the Tax Increment Financing (TIF) Process.

 

TIF Forms
Lake City TIF Policy

Overview
Tax abatement is the process by which a portion of property taxes are rebated back to the property owner, who then uses it to help offset development or redevelopment costs. Tax abatement is simpler and less restrictive than tax increment financing and is quite useful for smaller projects. Tax abatements can be provided for any type of property as long as it meets a public benefit test. The project must provide one or more of the following public benefits: 

    • Increase or preserve tax base
    • Result in job creation or retention
    • Redevelop blighted areas 
    • Provide services not currently available to the residents of Lake City 

Availability
The availability of tax abatement is limited. In any given year, for all economic development projects taking place, the City can abate an amount equaling no more than 10% of its current net tax capacity, or $200,000, whichever is greater. 

 

Process
Please reach out to the Lake City Port Authority to begin the Tax Abatement Process.

Overview
The Lake City Facade Improvement Program (FIP) is a public source of money from which loans are made to eligible applicants for the rehabilitation of business building exteriors. 

 

Eligibility Requirements

Businesses must be located in Zoning District B1 – Central Business District or B2 – Highway Commercial within the corporate boundaries of the City of Lake City to be considered for a loan. Vacant properties are not eligible unless an occupancy plan is in place.

 

Eligible Uses of Facade Funds:

    • Exterior Improvements
      • Examples: tuck-pointing, cleaning of bricks, window replacement, installation of signage
    • Code Compliance
      • Examples: exterior correction of code violations, mitigation of safety hazards
    • Increasing Handicap Accessibility
      • Examples: installation of ramps or handrails, entrance modifications
    • Historical Building Preservation
      • Examples: restoring original building features or design

Process

To learn more about the Façade Improvement Program and acquire an application, reach out to Ben Strand at bstrand@ci.lake-city.mn.us or (651) 345-6808.

 

Please Note: Applications received by the first Wednesday of every month will be considered by City Council the month following the application submission, resulting in a five to six week approval process. Applications received after the first Wednesday of the month may take up to twelve weeks to be approved.

 

Facade Improvement Program Forms

Facade Improvement Program Guidelines

Overview
The Lake City Revolving Loan Fund (RLF) is a public source of money from which loans are made for business development projects. The RLF is a low-interest, deferred-payment loan program that can be used to leverage additional private sources of funding. The RLF may not be used as the primary source of financing for a project and is typically used to fill a “financing gap” in a project if a business owner lacks the funds to meet the equity requirements of traditional bank financing. When interest and principal payments are made to the RLF from outstanding loans, the money “revolves” and can be made available to other borrowers. 

 

Eligibility Requirements
Businesses must be located, or willing to relocate, within the corporate boundaries of the City of Lake City.

 

Eligible Uses of RLF Funds:

    • Land and Building Acquisition
    • Land Improvements
    • New Building Construction
    • Building Renovation
    • Purchase of Machinery, Furniture, Fixtures, or Equipment

Ineligible Uses of RLF Funds:

    • Debt Refinancing
    • Working Capital
    • Equipment Relocation
    • Routine maintenance that does not extend the life of the structure

Process

To learn more about the Revolving Loan Program and acquire an application, reach out to Ben Strand at bstrand@ci.lake-city.mn.us or (651) 345-6808.

 

Please Note: Applications received by the first Wednesday of every month will be considered by City Council the month following the application submission, resulting in a five to six week approval process. Applications received after the first Wednesday of the month may take up to twelve weeks to be approved.

 

Revolving Loan Fund Forms

Revolving Loan Fund Guidelines

Overview

The Goodhue County Revolving Loan Fund (RLF) is a loan program designed to assist small businesses with financing needs. RLF loans are traditionally combined with other public or private dollars and are used to initiate, facilitate and promote the County’s legitimate economic development interests. This program is intended to complement, not replace, existing local development incentives. 

 

Eligibility Requirements

Only for-profit businesses located within the County are eligible to apply. Loan amounts range from $5,000 to $15,000.

 

Eligible Uses of RLF Funds:

    • Equipment and Fixtures
    • Land and Building Acquisition
    • Land Improvements
    • Machinery
    • New Building Construction

Learn More

The Southeastern Minnesota Multi-County Housing and Redevelopment Authority (SEMMCHRA) has funda available through the Small Cities Development Program (SCDP) to assist commercial property owners with building rehab projects. These funds can be used to improve the front façade, increase energy efficiency, improve accessibility and address code-related issues. Only businesses in a dedicated geographic area can apply; any business located within the red boundaries on the map to the left are eligible for assistance.

 

 

The maximum loan amount is $40,000. Owner must provide a 20% match. The program will provide 65% of the funding as a five-year forgivable loan and 15% as a low-interest loan.

 

Learn More

The Southern Minnesota Municipal Power Agency (SMMPA), in collaboration with the City of Lake City, offer rebates to businesses who invest in energy efficiency upgrades. Rebates are available for lighting fixtures, HVAC equipment, food service equipment and industrial compressed air equipment.

 

Learn More