Financing Toolkit

The Public Relations Grant is eligible to a non-profit corporation or organization (e.g., charities, trusts and tax-exempt entities) or a unit of government or a public agency. 

In 2021, the Red Wing Port Authority was given authority by the City Council to oversee a redevelopment planning effort that includes a targeted area in and around the former Bauer Built property on Old West Main Street. In order to incentivize future redevelopment projects here, the Port Authority is implementing a new program to assist relocations of existing businesses from this area to another location in Red Wing. This is one of three targeted business assistance programs that will all share an initial budget allocation of $150,000.

West End District Business Assistance Program Guidelines

The Red Wing Port Authority is providing an incentive program to improve the signs, awnings and façades of commercial and industrial buildings throughout the City. By enhancing the appearance of buildings, the program serves to improve the economic viability of these areas. Better aesthetics increase property values, improve the marketability of space within the buildings and draws business and residents to the area.

Sign Auning Facade Program Guidelines & Application

The City of Red Wing has set aside funds over the past five years to help implement a “Downtown Investment Partnership” initiative.  The City Council approved guidelines for a 2-year pilot program on January 8, 2018.  Although no project was initiated during those two years, a portion of the set-aside funds will be used as technical assistance grants within the downtown district as defined in the 2040 Comprehensive Community Plan.  Guidelines for the use of these grant funds are further defined below.

Technical Assistance Grant Program PDF

The Red Wing Port Authority (RWPA) has financing resources available for redevelopment projects, including revolving funds and direct budget expenditures. The RWPA has a “Downtown Revolving Loan Fund” that has supported a variety of downtown projects. Currently, this fund is subject to further evaluation by the Port Board as to its primary purpose and use, with a fund balance of approximately $150,000. In addition, the Port’s annual budget allocates funds to “Land Improvements” that can be further allocated to specific (re)development projects (on an annual basis). This budget has ranged recently from $250,000 - $350,000, which could potentially help fill a financing gap; no applications are required as this would likely be part of another application.

Parts of the City of Red Wing are located within a designated Opportunity Zone. Opportunity Zones provide options for tax deferral for building redevelopment projects.

Legacy grants provide financial support for projects focused on preserving Minnesota’s history and culture. Redevelopment of certified historic buildings – both planning and construction – are qualified grant activities. Grants are only available to government units and non-profit organizations. The City of Red Wing can apply for and sponsor cooperative grants for historic structures.

The city’s Housing and Redevelopment Authority (RWHRA) has financing available to support the rehabilitation of commercial businesses in a target area, including downtown Red Wing. The maximum loan is $50,000 at a 0% interest rate with half provided as a deferred loan forgiven after ten years. Certain federal financing restrictions apply to these funds, including Davis Bacon wages and Low/Moderate Income rents. This program works with an open pipeline application process. Applications are processed by the RWHRA, including a $500 application fee.

Pursuant to Minnesota Statutes §§ 116J.571 - 116J.575, the Minnesota Department of Employment and Economic Development (DEED) has the authority to award grants to assist development authorities with eligible redevelopment costs as defined below.  The Redevelopment Grant Program applies only to sites where there was a previous development and significant barriers exist to redevelop the land for a more productive use.  Cities, HRA’s and Port Authorities are eligible to apply with application deadlines twice per year on February 1 and August 1.  Eligible costs include:

• Public acquisition
• Demolition costs (as defined by Minn. Stat. § 116J.572)
• Interior Environmental Abatement
• Public Infrastructure Improvements (e.g., water and sewer, standard sidewalks, standard exterior public lights, roads, etc.)
• Environmental Infrastructure (e.g., ponding, stormwater, etc.)
• Geotechnical Soil Correction

As part of the Downtown Investment Fund, the Port Authority identified local foundations that are dedicated to similar goals for downtown redevelopment projects. The Port Authority continues to work with foundations and philanthropic organizations to identify projects and project needs that are aligned with foundation goals. One or more local foundations may provide funding to redevelopment projects on a project-by-project basis.

The federal EPA has resources available for redevelopment, including a Cleanup Grant to assist with projects on identified brownfield sites. The city may be able to help pursue these funds based on a project meeting EPA’s program criteria.

The City of Red Wing and the Red Wing Port Authority continue to support a program referred to as the “Downtown Investment Partnership.” The city and the port Authority contribute to this fund dedicated to providing local dollars, without regulatory strings attached, for assisting downtown redevelopment projects.   

The $1.9 trillion package, based on President Biden’s American Rescue Plan, is intended to combat the COVID-19 pandemic, including the public health and economic impacts. Funds were allocated by federal legislation to states, which in turn allocated the funds to cities. Red Wing continues to evaluate appropriate uses of funds it has received or may receive from this Act.

Minnesota Job Skills Partnership Grants (MJSP)

The intent of a MJSP grant is to provide new-job training or retraining for existing employees of participating Minnesota businesses.

Customized Training and Continuing Education

MSC Southeast provides Customized Training and Consulting to help organizations gain a competitive edge. Working with faculty, they can put together a unique package that fits your timeline, goals and budget.  

Minnesota State College Southeast

Companies that engage in certain research and development (R&D) activities in Minnesota may qualify for the Credit for Increasing Research Activities.

The R&D credit is equal to 10% of qualifying expenses up to $2 million, and 4% for expenses above that level. Qualifying expenses are the same as for the federal R&D credit - defined in Section 41 of the Internal Revenue Code - but must be for research done in Minnesota.

Examples include R&D-related wages, supplies and research contracted outside your business. Contributions to qualified nonprofit organizations that make grants to early-stage technology businesses in Minnesota also may qualify.

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The Greater Minnesota Job Expansion Program provides tax benefits to businesses located in Greater Minnesota that increase employment. Qualifying businesses that meet job-growth goals may receive sales tax refunds for purchases made during a seven-year period.

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Minnesota's Angel Tax Credit provides a 25% credit to investors or investment funds that make equity investments in startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The maximum credit is $125,000 per person, per year ($250,000 if filing jointly). The credit is refundable. Residents of other states and foreign countries are eligible.

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MinnPACE, a division of the Saint Paul Port Authority, is the largest provider of PACE financing in the State of Minnesota.

Property Assessed Clean Energy (PACE) is an innovative finance solution for building owners interested in energy efficiency and renewable energy upgrades. The PACE structure overcomes financial challenges that hinder the adoption of such projects by eliminating upfront costs, providing low-cost, long-term financing and making it easy for building owners to transfer payment obligations to tenants, as well as new owners, in the case of sale.

The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets.

Companies deemed eligible to participate may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements. In some cases, companies may receive awards of up to $2 million.

This award-winning program has been recognized for its innovation by the Economic Development Association of Minnesota.

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The Minnesota Investment Fund provides grants to help add new workers and retain high-quality jobs on a statewide basis.

The focus is on industrial, manufacturing, and technology-related industries to increase the local and state tax base and improve economic vitality statewide.

To Apply
Applications are accepted on a year-round basis. Select the Application Process link in the table of contents on this page.

Eligibility
Grants are awarded to local units of government who provide loans to assist expanding businesses. Cities, counties, townships and recognized Indian tribal governments are eligible for this fund.

Project Requirements
All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. There is a maximum of $500,000 per grant. Only one grant per state fiscal year may be awarded to a government unit.

At least 50 percent of total project costs must be privately financed through owner equity and other lending sources (most applications selected for funding have at least 70 percent private financing).

Terms and Interest
Grant terms are for a maximum of 20 years for real estate and a maximum of 10 years for machinery and equipment. Interest rates are negotiated.

For more information, contact the Office of JOBZ and Business Finance at 651-259-7430 or toll-free at 800-657-3858.

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The Trillion BTU Program is a partnership between the St. Paul Port Authority(SPPA), the Center for Energy and Environment(CEE) and Xcel Energy.

• All Xcel Energy commercial and industrial customers are eligible.
• Money saving opportunities are identified by energy audits and engineering studies (Xcel Energy co-funding and CEE technical assistance available).
• SPPA is using Federal stimulus monies through the MN Dept. of Commerce to create this program for Minnesota businesses.
• Customer chooses the Project and contractors, Xcel Energy provides the rebate, SPPA provides the financing.
• 100% financing available.