Tax Candi

I found out yesterday that the Mall of America is only the second largest mall in the U.S. Apparently the King of Prussia Mall is, and always has been, the largest enclosed retail space. (But neither hold a candle to the simply named Dubai Mall.)

But still, I've always wanted to visit the Mall of America. And the MoA is in the suburb of Minneapolis, so today we're discussing.....

The City of Minneapolis Financing Incentives

The City of Minneapolis Community Planning & Economic Development Department (CPED) offers various low-interest loans for eligible building improvement and equipment costs up to $10 million. CPED has a number of financing programs (including one designed to lend money in accordance with Islamic law), Many of these programs are aimed at residential development and small business owners. The programs targeting larger investments are:

Revenue Bonds and Common Bond Fund: tax-exempt or taxable revenue bonds (typically for $1 million to $10 million projects) are issued by on behalf of private borrowers to provide low interest rates on long-term financing. These bonds can be used to finance land acquisition, new-facility construction, additions to existing facilities, purchase and renovation of existing structures, and the purchase of production equipment.  Common Bonds are focused on manufacturing enterprises while Revenue Bonds finance industrial, commercial and medical facilities

Business Development Fund: Businesses locating or expanding in Minneapolis and creating new jobs may apply for loans of up to $75,000.  Additionally, eligible companies have the opportunity to receive prepayment credits for each Minneapolis resident the  company hires during the first three years of the loan. Eligible companies should create jobs that pay $11-$15 per hour plus benefits.  Money from the Fun may be used for inventory, production equipment, acquisition of business assets, move-in costs, leasehold improvements, working capital and real estate or business expansion.

Financing incentives are becoming more important as the credit market continues to tighten.  Minneapolis has done an excellent job by creating myriad programs to help businesses at various stages and sizes.  But look for these incentives to show up across the country.

In these tough economic times, why not relocate your operations to a city with an exceptionally low cost-of-living!

 To entice you to the Motor City, the City of Detroit has created the Detroit Investment Fund ("DIF")--a $52 million private capital fund created by Detroit Renaissance.  The fund is designed to provide financing for pretty much any business willing to come to the city, from growing commercial and industrial businesses to residential real estate development projects and special projects which address strategic needs of the city of Detroit.

The DIF generally provides financing amounts between $500,000 and $2 million to a broad range of projects including commercial expansion or relocation. It will provide capital financing for the purchase of machinery, equipment and real property, the improvement of real property, and the restructuring of existing debt.

In addition, working capital financing will be provided on a properly structured basis to meet the needs created by expansion. The financing should result in the retention and expansion of the number of employees employed in the business.