incentives

The incentives in this policy promote development, redevelopment, and economic vibrancy to the corridor and downtown.  Brainerd has elected to waive City building permit and inspection fees for all construction projects less than $150,000 in total construction costs.

The City of Brainerd has also elected to waive all sewer and water availability charges (SAC and WAC charges) within the River to Rail Corridor.  The project area boundaries are one-half block north of Washington street to one-half block south of Oak Street; from the Mississippi River to 19th Street SE.

Opportunity Zones were created by Congress in the 2017 Tax Cuts and Jobs Act to stimulate investment in low-income communities throughout the United States. Investments in Opportunity Zones must be made through a partnership or corporation, commonly known as Qualified Opportunity Fund (QOF).

Federal Tax Incentives include capital gain deferral and partial gain exclusion on realized gains reinvested in Opportunity Funds as well as full gain exclusion on appreciation of the Opportunity Fund itself – if the investment is held for 10 years.

TIF is used as a means of redeveloping areas occupied with substandard buildings, build housing for low-income and moderate-income families, provide general economic development incentives, and finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements.

Generally, tax-increment financing (TIF) is available for construction projects in excess of $1,000,000 in total construction costs along with proof of need shown by the investor that the development would not occur without the assistance of tax-increment financing.

The Brainerd City Council is willing to negotiate the term and amount of increment with said investor. All tax-increment financing applications must be approved by the Brainerd City Council, upon completion of negotiations.

Tax abatement may be considered if tax increment financing is not an option because the project doesn’t qualify under state law or the project is not in excess of $1,000,000.
Tax abatement will be considered on the new proposed value created, not the land or buildings’ existing.

Tax abatement will be considered only if the County is requested to participate, although the city’s provision of abatement is not contingent upon the County agreeing to participate. The Council will carefully deliberate abatement requests that ask for the maximum amount and term, only agreeing to provide abatements for the maximum amount and term where the developer can support the request with evidence of special need, or the proposal is for a project that is a high priority for The Council.

The city must also find that the abatement will serve the public good in one of many ways, such as increasing the tax base, redeveloping blighted areas, or providing employment opportunities, public facilities, or access to services.

The BLAEDC Unified Fund program offers economic development financing for business to enhance the economic base and vitality of Crow Wing County.

The BLAEDC Unified Fund program is a consortium of many funding pools from a variety of local, state, and federal sources.

The BLAEDC Unified Fund program will consider all applicants regardless of size or business type. Eligible projects include public purpose project, private sector investment, job creation and/or job retention, economic growth and/or redevelopment of the area, institutions that are equal opportunity providers and employers, project financing gap needs, and capital projects.

Contact Tyler Glynn, BLAEDC Executive Director at (218) 828-0096.

The Crow Wing County Local Housing Trust Fund (HTF) was created to assist in financing the production and preservation/stabilization of affordable and mixed-income housing projects in Crow Wing County.

It serves as a permanent source of funding and a continually renewable source of revenue to meet, in part, the moderate, low, and very low-income households of the County. The HTF provides loans to property owners, homeowners, local units of government, for-profit housing developers and non-profit housing developers for the acquisition, capital, and soft costs necessary for the creation or rehabilitation of affordable and workforce housing.

Eligible projects for the development program are both rental housing as well as home ownership developments with a requirement that a portion of the new units be affordable to incomes at or below 115% of the area median income (AMI) as well as a portion of units affordable to incomes at or below 80% of the AMI. The development program is meant to be a gap financing tool and is subject to available yearly funding.

For further information on eligibility or for general questions please contact John Schommer, rehab, and maintenance director at the Brainerd HRA at 218-824-3432