Category: Tax Credits, Local Incentives
The City of Red Wing and its Port Authority have an adopted Tax Abatement Policy to support desirable development, redevelopment or renewal that would not otherwise occur without this type of public assistance. Abatement is viewed as providing less potential public dollars to a project compared to TIF assistance (due to the independent election of the school district and county to approve tax abatements). Public purposes that must be met relate to increasing/preserving the tax base, providing employment opportunities, acquiring/constructing public facilities, redeveloping blighted areas, and financing public infrastructure. An Abatement application fee is $5,000. General project costs that my qualify for Tax Abatement assistance include:
- General economic development
- Public facilities / infrastructure
- Redevelopment of blighted areas
- Access to services for residents (i.e., retail)