A few incentives to start business in Red Wing, MN

In Minnesota, cities and development authorities may use tax increment financing to help finance costs of real estate development. Tax Increment Financing (TIF) uses the increased property taxes that a new real estate development generates to finance up-front costs of the development. In Red Wing, it is used as an incentive to remove blight or redevelopment, increase tax base, and retain or increase job opportunities and promote economic diversification.

Also, the city of Red Wing is authorized by the Abatement Act. Abatement is a tax rebate rather than an exemption from paying taxes. The Abatement Act grants the city of Red Wing an abatement, by contract  or otherwise, of the taxes imposed by the City of Red Wing on a parcel of property, which may include personal property and machinery, or defer the payments of the taxes and abate the interest and penalty that would otherwise apply.

With the help of Red Wing Port Authority, the city of Red Wing has several financing options available for those businesses that qualify, including TIF, abatement, and bonding. Plus, the “Red Wing Port Authority operates a large loan portfolio to healthy and expanding businesses that have the highest probability of creating new jobs.” Their available financing tools include the JOBZ (Job Opportunity Building Zones) Program, industrial revenue bonds, the Minnesota Investment Fund, a $3 million revolving loan fund, and many more.

To learn more about the loan programs that Red Wing has to offer, visit http://redwingportauthority.org/red-wing-port-authority/loans-and-incentives/loan-programs