Tax Increment Financing (TIF) & Economic Development Tax Abatement

GREDA and the City of Grand Rapids have utilized and are willing to consider additional use of the TIF public development financing tool to overcome financial barriers that would have precluded private investment in projects that meet public purposes or objectives such as:

• • Redevelop areas occupied with substandard buildings
  • Build housing for low-income and moderate-income families
  • Clean up pollution
  • Provide general economic development incentives
  • Finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements

Block 37 (Downtown Grand Rapids- pre-project)

Block 37 TIF Project

 

GREDA staff is available to confidentially discuss your project to determine if it may qualify for one of the following types of TIF districts permitted by Minnesota statutes:

TIF District Type	Duration Limit (after receipt of first increment)	Geographic Areas That Quality	Permitted Uses of Increments
Compact Development	25 years	- 70% occupied by buildings - planned development increases the square footage of C/I buildings by three times or more	- Land acquisition and site preparation - Public infrastructure except roads, parking, or similar to service passenger vehicles
Economic Development	8 years	No restrictions	- Manufacturing - Warehousing - R&D facilities - Telemarketing - Tourism in qualifying counties - Commercial developments in small cities
Housing	25 years	No restrictions	Housing for low- or moderate-income renters or homeowners
Hazardous Substance Subdistricts	25 years	Parcels in a TIF district containing polluted sites and contiguous parcels	Site acquisition and cleanup
Redevelopment	25 years	- 70% occupied by buildings, 50% of which are substandard or - certain rail-yards - tank facilities	Correction of conditions justifying creating district
Renewal and Renovation	15 years	70% occupied by buildings, 20% of which are substandard and another 30% require renovation	Correction of conditions justifying creating district
Soils Condition	20 years	Site contains pollution and cost of cleanup exceeds lesser of $2/sq. ft. or the fair market value of the land	Site acquisition and cleanup

 

 

Oakwood Terrace TIF Project			Crystal Lake Estates TIF Project
Grand Plaza TIF Project