City of Hastings, MN
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The PACE (Property Assessed Clean Energy) Program, offered through a partnership with the St. Paul Port Authority, is a program that can serve as a potential financing tool for Hastings’ businesses to assist them in making energy efficient improvements to their buildings. This program allows commercial, industrial and multi-family property owners to finance improvements that, many times, cannot be financed in a conventional way because the improvement(s) cannot secure the loan. Examples of eligible improvements covered under PACE include:
- Building-related energy efficient improvements (mechanical systems, lighting, windows, HVAC upgrades)
- Renewable energy systems attached to or near a building (solar or geothermal)
- Electric vehicle charging infrastructure.
PACE funds come from the St Paul Port Authority and are financed, by the city, through a special property tax assessment, paid twice a year, when property taxes are due. Special assessments can last up to 20 years.
The Façade Improvement Program (FIP) was established to stimulate private sector investment in order to increase the overall tax base, encourage investment, expansion, and rehabilitation of commercial and retail buildings within areas of the City that are experiencing a lack of investment and to prevent against blight along Vermillion Street and downtown Hastings.
The FIP has a budget of $50,000 for 2023 starting January 1, 2023. Grant awards will range from $1,000 to $5,000. Applications will be considered on a first come first served basis. Grant funds must be matched 2:1 with private dollars.
Eligible Areas - Eligibility for the Façade Improvement Program is limited to commercial and retail properties within either of the following areas:
- Properties abutting or prominently viewed from Vermillion Street.
- Downtown properties located south of the Mississippi River, East of Eddy Street, West of Bailey Street/CP railway, and North of 6th Street E.
Eligible activities include the following:
- Brick replacement and repair
- Window repair/reconstruction
- Repair or replacement of awnings
- Exterior steps and storefronts
- Roof replacement on properties listed as local Heritage Preservation Sites
- Structural issues on properties listed as local Heritage Preservation Sites
Get more information on Program Information, Guidelines and Application Instructions below:
The Economic Development Revolving Loan Fund (EDRLF) provides financial assistance to projects that do not have the ability to receive adequate funding for business growth through traditional or private means. The EDRLF serves as a bridge between the amount the borrower can obtain on the private market or through equity and the amount needed to start or grow a business. Eligible activities for loans include:
- Working capital
- Purchase and installation of machinery and equipment
- Acquisition of land and buildings
- New construction
- Facade and building renovation
- Clearance, demolition, or removal of structures
- Infrastructure improvements necessary to support new or expanding businesses
Get more information on Program Information, Guidelines and Application Instructions below.
Tax Abatement
The City is allowed to refund a portion of a company’s property taxes for a set period of time when a company makes improvements on vacant land or a building that will result in higher property taxes being paid. Projects must meet the "but for" test and align with the City’s Business Subsidy Policy, including specific hiring and wage goals.
Understanding TIF
What is TIF?
Tax Increment Financing (TIF) is one of the few public financing tools available to municipalities in the State of Minnesota. Since the 1970s it has been used sparingly in Hastings to achieve redevelopment goals.
How Does It Work?
When a TIF District is created, a base valuation of the property in that area is established. All taxing authorities continue to receive tax revenue from the base valuation. Taxes from increases in assessed value go to the TIF account and pay debt or other financial obligations necessary to complete the redevelopment project. After the obligations are met, the TIF District closes and all taxing authorities benefit from the new, higher valuation. State Law gives Minnesota cities the power to use tax increment financing (TIF) to promote economic development.
What Benefit Does The Public Get From Fit?
- Blight mitigation or elimination
- Infrastructure improvements
- Public amenities
- Affordable housing
Some Projects TIF Helped Make Happen
- The Confluence
- The Quill
- NAPA Auto Parts
- Flats on Third
Rules For TIF
TIF Districts and use of TIF is governed by Minnesota State Law. The City's use is further restricted by policies established by the City Council and Hastings Economic Development and Redevelopment Authority (HEDRA).
Developers interested in seeking TIF assistance can utilize this TIF Assistance Application.
The City of Hastings provides an option to pay Sewer Availability Charge (SAC) and Water Access Charge (WAC) fees over time, instead of an upfront payment due at the time of building permit issuance. This program is in addition to the Metropolitan Council’s SAC Deferral Program, adopted by the City in April 2017. The Met Council SAC Deferral Program is targeted to small businesses (under 25 SAC units) as a means of assistance in paying Metropolitan Council SAC charges. The program allows a portion, up to 80%, of SAC to be paid over a period not to exceed ten years.
If eligible, businesses and/or property owners have the option to utilize the Metropolitan Council SAC Deferral Program, the City of Hastings SAC & WAC Deferral Program, or both.
Metropolitan Council SAC Deferral Program: 10 year term; low interest rate; 20% down, plus the first monthly payment; secured by the Deferred Payment Agreement; eligible to businesses with SAC unit determination of 25 units or less. This program is established and regulated by a Master SAC Deferral Agreement executed between the City of Hastings and Metropolitan Council.
City of Hastings SAC & WAC Deferral Program: 10 year term; low interest rate; secured by the Deferred Payment Agreement; eligible to businesses with a SAC & WAC unit determination of 25 units or less. This program is established by City Ordinance and is intended to parallel the Metropolitan Council Program guidelines.
The Hastings Economic Development and Redevelopment Authority (HEDRA) recognizes the need to preserve and improve affordable housing, to preserve and make appropriate improvements to buildings which contribute to neighborhood appearance and/or the historic character of the community, and to correct conditions which threaten the health, safety and welfare of residents. The purpose of the Residential Rehabilitation Loan Program is to provide supplemental financing to residents in the City of Hastings to assist in the costs of building improvements. Get more information about Program Information, Guidelines and Application Instructions.
The Dakota County Community Development Agency (CDA) provides a wide range of housing resources for Hastings residents. Resources available from the CDA include:
The City of Hastings is allowed to make one Project application and one Planning application per fiscal year. The City has submitted a Project application for fiscal year 2022 and will again be eligible to make application on July 1, 2022 for the 2023 fiscal year.
Since 2007, the Dakota County CDA has been encouraging community revitalization and assisting Dakota County cities with their redevelopment goals through a locally funded initiative called the Redevelopment Incentive Grant (RIG) program. To date, the CDA has awarded over $13 million to 64 redevelopment projects and 27 planning activities. The CDA’s RIG program has leveraged over $165 million in other public and private funding for redevelopment efforts in Dakota County.
The Dakota County CDA is accepting applications for the 2022 fiscal year (July 1, 2021 – June 30, 2022). All cities in Dakota County are eligible to apply. Maximum grant for plans is $15,000 and maximum grant for projects is $250,000.
Minnesota Investment Fund
The Minnesota Investment Fund provides financing to help add new workers and retain high- quality jobs in industrial, manufacturing, and technology-related industries. Funds are awarded to local units of government who provide loans to assist expanding businesses.
Projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. At least 50 percent of total project costs must be privately financed through owner equity and other lending sources. Maximum of $500,000 per project.
Terms are up to 20 years for real estate and up to 10 years for machinery and equipment. Interest rates are negotiated.
Contact:
John Shoffner
Business Development Specialist
Phone: 651-259-7445
Job Creation Fund
The Job Creation Fund provides awards of up to $500,000 and capital investment rebates of up to $500,000 for qualifying businesses.
The program is available to businesses engaged in manufacturing, warehousing, distribution, technology-related industries, and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business.
Contacts
Tom Washa
Program Administrator - Principal
Phone: 651-259-7483
https://mn.gov/deed/business/financing-business/deed-programs/mn-jcf
Xcel Energy provides a variety of incentives related to new buildings constructed within their service territory.
For large construction or renovation projects of 20,000 square feet or more, this service offers comprehensive energy modeling to identify both energy and cost-savings and rebates based on a whole-building energy efficiency approach.
Often used for construction or renovation projects of 20,000 square feet or less, this service identifies energy-saving opportunities and offers rebates for installing high-efficiency equipment.
If interested in either of these programs please contact Patrice Meger at Patrice.B.Meger@xcelenergy.com or at (651)-271-6955.