15 Year Anniversary Report & 2005 Work Plans

Transcription

1 2005 HRA-EDA Board: Housing and Redevelopment Authority-Economic Development 15 Year Anniversary Report & 2005 Work Plans Polaris Industries Builds New R&D Facility in Wyoming Jim Ertz, Chair, 5th Dist Jim Stein, Vice Chair, 2nd District Greg Berg, 1st District Dean Perry, 3rd District Dave Boniface, 4th District Mike Robinson, County Board Rep. Lynn Schultz, Alt. County Board Rep. In 2004, Polaris Industries began construction on a new 100,000 sq. ft. research, design and engineering facility on the former Wyoming wastewater treatment site. The new R & D facility is scheduled to be operational in the Spring of 2005 and will bring over 300 new engineering and technical jobs to the area. Past Board Members: Mark Zaruba Martin English John Silver Bob VandeKamp Dennis Coryel Tom Greig John McQuaid Dorothy Person Phil Leier Ralph Olmschenk HRA-EDA Staff: Christopher Eng, Executive Director Deborah Johnson, Administrative Assistant Coordinator Bayview Senior Apartments Open in Center City In 2004, the HRA-EDA, along with Center City and Chisago County, cut the ribbon on the new 24 unit Bayview Senior Apartments located on South Center Lake in Center City. The development was a cooperative effort between Center City, Chisago County, the State of Minnesota, and the HRA-EDA. The new building offers spacious one and two bedroom apartments for seniors, age 62 and over.

2 What is the Chisago County HRA/EDA? The Chisago County Housing & Redevelopment Authority (HRA) was created in In 2000, the Chisago County Board authorized the HRA to adopt full Economic Development Authority (EDA) powers. Currently, the Chisago County HRA/EDA offers a wide range of resources to public and private sector clients, including: Community Development Securing & administering local, state and federal grants and loans, and other community development programs. Economic Development Assisting local units of government and City Economic Development Authorities with business park development programs, tax increment financing programs, tax abatement assistance and other business finance incentives. Business Assisting with new business establishment and existing business expansion within the county through financial incentives, such as the Business Enterprise Program. Housing Developing and implementing programs for housing rehabilitation; new housing development for the senior, multi- and single family housing market, as well as home purchase assistance. THE MISSION Chisago County HRA/EDA: TO IMPROVE the commercial and industrial tax base within the county with an emphasis on assisting existing businesses; and vigorously market the County to attract new business development. TO PROMOTE and maintain a high quality of life in the county by advancing affordable housing development and private investment through collaborative efforts with local units of government, and other interested organizations in Chisago County. 16% 14% 12% 10% 8% 6% 4% 2% 0% Commercial/Industrial Market Values as a Percentage of The the chart Overall at left shows that Tax in 2003 Base just 5.4% of Chisago County s total market value was commercial/ industrial, (as a percentage of the overall tax base). This represents a 2% decrease from 1993, which was Statewide Average Chisago County Commercial/Industrial slightly over 7%. In 2003 the statewide average of the commercial/ industrial tax base was 12.5%, more than double the Chisago County average. For cities, the table below compares the percentage of the overall commercial/industrial base in 1997 and 2004 for cities in Chisago County. The statistics also compare the 2004 city-averages to the statewide average of 17.8%. Commercial/Industrial Market Values Market Values +/- State Avg Yr GAIN/LOSS 2004 STATEWIDE AVG. 19.0% 17.8% -1.2% Center City 9.2% 6.2% -3.0% -11.6% Chisago City 11.1% 8.0% -3.1% -9.8% Harris 4.5% 8.1% 3.6% -9.7% Lindstrom 11.3% 6.9% -4.4% -10.9% North Branch 12.4% 12.4% 0.0% -5.4% Rush City 23.7% 22.3% -1.4% 4.5% Shafer 18.3% 15.2% -3.1% -2.6% Stacy 20.4% 21.5% 1.1% 3.7% Taylors Falls 7.8% 7.3% -0.5% -10.5% Wyoming 14.2% 16.4% 2.2% -1.4% 2

3 State of the County 4 Major Concerns for Chisago County s Economic Base 1.) Chisago County needing a broader economic/business base. Residential development in Chisago County is growing at a very rapid pace. However, commercial/industrial development in Chisago County is not keeping pace. In 2004, only two cities in the county (Rush City and Stacy) had commercial/ industrial market values higher than the statewide average. When Local Government Aid (LGA) is cut at the state level, residential taxpayers feel the brunt of the burden, as in recent years. 2.) Chisago County loosing existing businesses. Four businesses have recently left Chisago County to relocate in Wisconsin. In the Osceola Industrial Park there are 21 businesses 17 of them originally from Minnesota. Why are they leaving? A company that recently relocated to Wisconsin was able to save over $32,000 per year in property taxes on a new $1 million manufacturing facility that could have very well been built in Minnesota. Construction, land, wages and product transportation costs are approximately the same in Minnesota as in Wisconsin. However, worker s compensation rates are as much as 40% less, and corporate income taxes are as much as 20% less, just a few short miles across the St. Croix River in Wisconsin. 3.) Chisago County a bedroom community - residents spending dollars elsewhere. Between 60 to 80% of the County s residents commute to work everyday outside of the county. Not only are our residents working outside of the county, they are also shopping outside of the county in Minneapolis/St. Paul, Forest Lake, Lino Lakes, Blaine or Vadnais Heights during the workday, or on their way home to Chisago County. 4.) Chisago County s labor force earning $9,000 less per year than the statewide average. The average hourly wage in Chisago County is $13.88/hour. The statewide average hourly wage is $18.33/hour. (See chart below). The median price of a single family home in Chisago County is slightly more than $200,000. However, someone earning the county-average income would only qualify for a maximum home price of about $135,000, (using conventional underwriting criteria). Consequently, there are very few homes for sale in the county that an average worker employed in Chisago County can currently afford. The four Major Concerns for Chisago County s Economic Base is the focus and driving force behind the 2005 Work Plans, see page 11 for more information on the HRA/EDA s Economic Development Work Plan. Based on the Chisago County Business Retention and Enhancement Survey conducted by the HRA-EDA in 2003, business owners provided average starting hourly wage and salary paid to Employees, by category. Employment Category Chisago County 3 Metro Area Difference Temporary/contract labor $10.00 not available - Professional/managerial $24.04 $ $16.54 Sales* $22.83 $13.17 $9.66 Clerical $11.00 $ $3.34 Skilled/technical $15.63 $ $0.74 Production (semi-skilled) labor $12.25 $ $2.64 * General (unskilled) labor $10.00 $ $0.57

4 What is TIF/Tax Abatement? Tax Increment Financing (TIF) and Tax Abatement are financing tools that can be used to promote economic development. These tools allow cities and/or the county to capture and redirect a portion of the new property taxes that are generated by new businesses relocating into the area or an existing business that is expanding. As an example, let s assume a business wants to build a new manufacturing facility on a city owned piece of property. In order for the development to take place, the city needs to raise some money for infrastructure improvements. Let s also assume that the land was previously tax exempt since it was owned by the City. But, once the property is sold to a business, the business will pay $60,000 in new taxes every year. The difference between the old taxes ($0) and the new taxes ($60,000) is called tax increment. This new increment in taxes ($60,000, in this example) can be used for a number of things including, but not limited to making the necessary infrastructure improvements. This is what we call Tax Increment Financing. Tax Abatement is basically the same concept, however, the abatement is more like a rebate of a portion of the new property taxes (again, the increment ) to a business to write down some of the development costs. Tax abatement can also be redirected to the city and/or county to pay for public in- Programs at Work in Chisago County Chisago County Business Enterprise Program The Business Enterprise Program (BEP) is a means by which banks, utilities and governmental units can invest in economic development in Chisago County through the purchase of Business Enterprise Certificates of Deposits (CD s). These CD s are available in increments of $1,000 and are fully insured by the FDIC. Investment in the CD s is a five year commitment and pays an interest rate of 3.5% below New York prime rate. The collective investment of Chisago County businesses has provided business lenders with an excellent source of low cost funds as an incentive to offer below market rate loans to manufacturing, technology and certain types of service businesses in Chisago County. Under the Business Enterprise Program, loans are made to businesses that want to expand in or relocate to Chisago County. The loans are required to meet the originating bank s lending requirements, and are made at 1% below prime. Program funds may be used for equipment purchases, real estate acquisition or building construction. Also, the business must retain, improve, or create jobs, and/or increase the county s tax base. The maximum term for a BEP loan is five years and the maximum loan amount is $300,000. The program is designed for loans only and cannot be used for collateral or guarantees. Since its inception in 1994, twenty four BEP loans have been approved totaling over $2 million dollars and creating and/or retaining over 400 jobs in Chisago County. Land Acquisition & Business Park Development Program One of the primary objectives of the HRA-EDA is to identify and preserve land for future business development opportunities. To date, the HRA -EDA has assisted: Chisago City - with the acquisition and infrastructure development of a 20-acre parcel adjacent to the Chisago City Industrial Park. Stacy - with the development of infrastructure (water, sewer, streets and storm sewer) to promote new business development in the Stacy Ponds Business Park. Wyoming - with the acquisition of a 14-acre parcel on I-35 to be developed and sold to commercial/light manufacturing businesses. North Branch - with the acquisition of 16 acres adjacent to their Industrial Park for its expansion. Rush City - with the acquisition of a 75-acre parcel of land that is adjacent to the Rush City Industrial Park. The land will be developed to include water, sewer, streets and storm sewer for new industrial businesses. 4 The HRA-EDA is currently pursuing additional land acquisition and business park development opportunities with Shafer, Taylors Falls, Lindstrom, Stacy and North Branch.

5 15 Years of Chisago County HRA-EDA Development CENTER CITY Chisago County Government Center 1988, HRA-EDA issued a revenue bond to finance the Chisago County Government Center. The HRA-EDA owns the government center and leases the building to Chisago County. Chisago County Jail 1992, HRA-EDA issued a revenue bond to finance the Chisago County Jail building. The HRA- EDA owns the jail and leases the building to Chisago County. Chisago County Public Works Building 1997, HRA-EDA issued a revenue bond to finance the Chisago County Public Works building. The HRA-EDA owns the public works building and leases the building to Chisago County. Eichten s Cheese & Bison Farm 1998, HRA-EDA assisted the company with a Business Enterprise Program loan to purchase new equipment and add 6 new jobs. Small Cities Development Program , HRA-EDA secured and administered grant funds from the Minnesota Department of Employment & Economic Development s Small Cities Development Program to rehabilitate commercial buildings and rental units in Center City. The program was a comprehensive approach to revitalizing Center City s main street and downtown area. Bayview Senior Apartments 2003/2004, HRA-EDA built a new 24 apartment complex for seniors 62 and older on South Center Lake using revenue bonds and grant funds from the State of Minnesota. There are 17 two bedroom units and 7 one bedroom units. The HRA-EDA owns and manages the complex. CHISAGO CITY Land Acquisition Chisago City Business Park The Chisago County HRA-EDA assisted the city in the purchase of 20 acres for a business park adjacent to the city s existing business park. The HRA-EDA has also agreed to assist the city in financing the infrastructure improvements needed to service the newly created business park. The HRA-EDA funds will be repaid as the lots are sold. Haus Manufacturing 1994, HRA-EDA assisted the company with a Business Enterprise Program loan for the purchase new equipment resulting in 6 new jobs. 1995, HRA-EDA assisted the company with a Business Enterprise Program loan for land acquisition and a 9,000 sq. ft. addition to their existing manufacturing facility, creating an additional 11 jobs. Small Cities Development Program 1997, HRA-EDA assisted Center City with the administration of a comprehensive Small Cities Development Program grant for commercial rehabilitation, owner-occupied and rental housing rehabilitation, and water line improvements. Refcon, Inc. 2000, HRA-EDA assisted the business with a Business Enterprise Program Loan for site cleanup and building construction. The result was 15 newly created jobs. 2004, HRA-EDA assisted with a Business Enterprise Program Loan for the construction of an additional office building; 11 new and retained jobs resulted. Tax abatement assistance was also provided for site clean-up of the former Chisago Lakes Wastewater Treatment plant. The abatement is in the amount of $5,000 per year for a maximum of eight years. The base value of the property was $21,600; the 2004 value of the land and buildings is $447,900. Chisago County Library 2004, HRA-EDA issued revenue bonds to finance the construction of the new Chisago Lakes Area Library. Construction began in 2004 and the project completion is scheduled for HARRIS Small Cities Development Program 2003, HRA-EDA assisted the city in an application to the Minnesota Department of Employment and 5

6 Economic Development s Small Cities Development Program to acquire financing for improvements to the wastewater treatment facility. Boulder Creek Stone Tax Increment Finance District 1995, HRA-EDA created a Tax Increment Finance District for a new development to be located on a former landfill site in Harris. The development consisted of a new facility built by Boulder Creek Stone Company (Cornado Stone). The 150,000 sq. ft. stone manufacturing facility currently employs 150. LINDSTROM Lindstrom EDA 2004, HRA-EDA assisted the City of Lindstrom in creating an Economic Development Authority. NORTH BRANCH Branch Manufacturing 1997, HRA-EDA assisted the company expansion with a Business Enterprise Program loan for the real estate purchase and building construction. Fifteen new jobs were created as a result of the expansion. Corral Machine 1997 Tax abatement assistance of $5,000 was provided to the company for the construction of a new building in the North Branch Industrial Park. The original base value of the property was $17,100; the 2004 value of the land and building is $180,000, expanding the county s commercial/ industrial tax base by $162,900. Heatco, Inc Tax abatement assistance was provided to aid the company in the construction of a new 9,000 sq, ft. facility; 20 new jobs were created as a result. The tax abatement amount was $4,792/year for 7 consecutive years. The original base value of the property was $18,000; the 2004 value is $339,300, expanding the commercial/industrial tax base by $321,300. Winkelman Development Corp Tax abatement assistance to the company totaled $5,000 over a 7-year period, and was used to offset acquisition cost of the land. The 2004 building value is $263,200, an increase of $245,200 above the original base value. Prism Design 1998, HRA-EDA assisted the company with a Business Enterprise Program loan to purchase new equipment, resulting in the addition of 3 new jobs. Higley Cabinet 1999 Tax abatement assistance aided the company in the construction of a 12,500 sq. ft. facility. The abatement was granted at $3,625 per year over an 8 year period. The original base value of the property was $18,000; the 2004 value is $504,600, expanding the new commercial/ industrial tax value by $486,600. Peterson s North Branch Mill 1999 Tax abatement assistance was provided for clean up of a contaminated site, preparing the site for a new commercial building. The original base value of the property was $34,000; the new building and land are currently valued at $1,157,600, an increase in the commercial tax base of $1,123,600. Super 8 Crossroads Motel 1999 Tax abatement assistance of $5,000/year over 10 years, was provided to increase the amount of available conference room space in the county. The original base value of the property was $255,700; the 2004 building and land value is $959,700, an increase of $704,000. Bowers Real Estate 1999 Tax abatement assistance was provided to aid in the clean-up of a blighted site, formerly occupied by an automotive repair/tire shop destroyed by fire. The original base value of the site was $0 (actually, a negative value due to the clean-up and debris removal costs). The current value of the site with the new building is $514,200. Royal Precision Machine 1995, HRA-EDA assisted the company with a Business Enterprise Program Loan for the purchase of equipment, resulting in the creation/ retention of 7 jobs Tax abatement assistance was provided to assist in the construction of a new manufacturing facility in the North Branch Industrial Park. The original base value of the property was $18,000; the new building and land is currently valued at 6

7 $219,200, reflecting an increase of $201,200 in the city and county tax base. Action Chromate 1996, HRA-EDA assisted the company with a Business Enterprise Program loan for the purchase of equipment, and resulted in the addition of 10 new jobs. Branch Manufacturing 2004, Tax abatement assistance for a 13,000 sq. ft. expansion of the existing facility. The assistance is in the amount of $3,750 over a period not to exceed 8 years. It is anticipated to increase the commercial/industrial tax base by $582,000 and add 9 new jobs. SD Furniture Mart 1998, Tax abatement assistance for the development of a new 40,000 sq. ft commercial building, creating 30 new jobs. The amount granted was $17,000 over a period of 10 years. The original base value of the property was $234,500; the 2004 land and building value is $2,146,100, representing an increase of $1,911,600 in the county s commercial tax base. However, this does not include the added value of two other furniture stores that were attracted to the area and located adjacent to this property (Slumberland and Ashley Furniture). Kestrel Meadows 1997, HRA-EDA is partner and asset manager for a 30 unit family townhouse development located on Oakview Circle in North Branch. The two story units include garages and a playground; all units have three bedrooms. The development which was completed in September 1998, was financed through the Minnesota Housing Finance Agency s Federal Tax Credit Program and is a collaborative development between Kestrel Development and Chisago County HRA -EDA. Andersen Corporation 2003, HRA-EDA learned that the Andersen Corporation was searching for a site to manufacture window and door components for their Renewal by Andersen products. After a series of meetings and a short negotiating period, the company selected a 7 16-acre site in the North Branch Industrial Park that was jointly purchased in 2002 by the HRA-EDA and the City of North Branch. The recently completed 150,000 sq. ft. facility is now in production. A total of 135 jobs will be added to the community/ county when the facility is fully operational. The original base value of the land was $389,900; the new building is valued at $1,600,300. Job Opportunity Building Zones 2003, HRA-EDA assisted the City of North Branch in the application process for a newly created state program that allows certain types of businesses to take advantage of tax incentives at the state and local levels. In December 2003, the Minnesota Department of Employment and Economic Development announced that a Job Opportunity Building Zone was awarded to a 40 acre site in North Branch for the Andersen Corporation and a future expansion for the North Branch Industrial Park. Although the building is exempt from taxes for 12 years, the land is currently producing $13,000 in taxes on a parcel that was previously non-tax producing. Viking Coke, North Branch 2003, Viking Coca Cola Distribution requested HRA-EDA s assistance in finding a site in Chisago County to relocate its regional distribution facility. The HRA-EDA worked with the company to find a site in North Branch, and in October 2003 the company began the construction of a 30,000 sq. ft. distribution facility that will employ 30. St. Croix Stone, North Branch 2003, St. Croix Stone requested assistance from the HRA-EDA to find a building site in Chisago County to relocate its concrete stone and brick manufacturing facility that was currently located in Washington County. Working together, a suitable site was found in North Branch, and in November 2003 the company began the construction of a new 36,000 sq. ft. manufacturing facility, employing 35. The Bindery, North Branch 2003, HRA-EDA assisted the city of North Branch in discussions with the company which already had facilities in neighboring Isanti County and Wisconsin. They were looking for a site that would accommodate the consolidation of the two facilities. Discussions resulted in the Bindery s decision to construct a new 45,000 sq.ft. facility which added 60 new jobs to the North Branch area. North Branch Library 2004, HRA-EDA issued revenue bonds to finance the construction of the new North Branch Library. The project is scheduled for completion in 2005.

8 Rush City Small Cities Development Program 1996, HRA-EDA assisted in the administration of a comprehensive Small Cities Development Program Grant for owner-occupied housing rehabilitation, and well/water treatment improvements. RTS/Maxxium 2001, HRA-EDA assisted the company in the development of a 20,000 sq. ft. facility in the Rush City Industrial Park. The assistance was in the form of tax abatement ($8,571over 8 years) to offset the land cost. The money will be repaid to Rush City. Rush City Regional Airport Improvements HRA-EDA assisted Rush City with financing for the development of a new 4,400 foot taxiway at the Rush City Airport. The assistance, in the form of tax abatement, applies to existing and new hangers that are located on the municipally owned airport grounds. The tax abatement will provide ten percent of the cost of the new taxiway, up to $22,000 over 10 years. The estimated total cost of the new taxiway is $885,000. Senior Housing 2003, HRA-EDA prepared and submitted an application to the Minnesota Department of Employment and Economic Development s Small Cities Development Program as a cooperative effort with Rush City. The program provided grant funds to construct a 20-unit senior apartment complex. Construction will begin in early 2005 and is anticipated to be ready for occupancy in late Rush City Job Opportunity Building Zone. HRA-EDA assisted Rush City prepare an application to a newly created state program allowing certain types of businesses to take advantage of tax incentives at the state and local levels. In December 2003, the Minnesota Department of Employment and Economic Development announced that a Job Opportunity Building Zone was awarded to Rush City for a 75-acre site in the Rush City Industrial Park. Lofgren Trucking 1994, HRA-EDA assisted the company with a Business Enterprise Program loan to construct a building in the Rush City Industrial Park, creating 19 new jobs. 1998, HRA-EDA assisted the company with an additional Business Enterprise Program loan to expand their facility and add 4 new jobs. 2002, HRA-EDA assisted the company with an additional Business Enterprise Program loan to purchase new equipment, adding 15 new jobs. Southfield Estates 1997, Chisago County HRA-EDA is the owner of a 24-unit market rate, senior and family townhouse development located on Estate Drive in Rush City. The 10-building development contains 2 3 units per building; single story units have attached garages. Financing was provided through HRA-EDA - issued revenue bonds and remains a cooperative development between Rush City and the HRA - EDA. Rush City Library 2004, HRA-EDA issued revenue bonds to finance the purchase and expansion of the Rush City Library. Stacy Wyoming Machine 1994, HRA-EDA assisted the company with a Business Enterprise Program loan to construct an addition to their manufacturing facility, retaining 72 jobs. Sub-Tronics 1995, HRA-EDA assisted the company with a Business Enterprise Program loan to construct an addition to their existing manufacturing facility, creating 11 new jobs. 1999, HRA-EDA assisted the company with an additional Business Enterprise Program loan to purchase new equipment, creating 21 jobs. Stacy Ponds Business Park 2004, HRA-EDA assisted Stacy in the development of a new business park. Tax abatement was also provided for the development of infrastructure to service the newly created Industrial Park. The first business to locate in the park is Hans Hagen Homes, a manufacturer of modular homes. The company is building a 55,000 sq. ft. facility and will bring 30 new jobs to the area. Taylors Falls Taylors Falls Small Cities Development Program 8

9 2003, On behalf of the City of Taylors Falls, the HRA-EDA prepared and submitted an application to the Minnesota Department of Employment and Economic Development s Small Cities Development Program to rehabilitate commercial and rental properties in downtown Taylors Falls. The program is part of a larger downtown revitalization program, including a new river walk and a Tax Increment Finance Redevelopment District. Taylors Falls Townhouses Chisago County HRA-EDA is the asset manager of a family townhouse development located on Chestnut Street. Project financing was partially provided through the Minnesota Housing Finance Agency s Federal Tax Credit Program. The project was a cooperative development between Anchobaypro, Inc. and the HRA-EDA. Phase I, single-story units with attached garages, was completed in June Phase II, consisting of 8 two-story units also with attached garages, was completed in Wyoming Finishing Touches Industries 1995, HRA-EDA assisted the company with a Business Enterprise Program Loan to construct a new manufacturing facility, creating 18 new jobs. 2001, HRA-EDA assisted the company with an additional $36,000 Business Enterprise Program Loan to purchase new equipment, creating an additional 9 new jobs. CTB, Inc. 1996, HRA-EDA assisted the company with a Business Enterprise Program Loan for the purchase of equipment, resulting in the creation/ retention of 22 jobs Wonder Industries 1996, HRA-EDA assisted the company with a $40,000 Business Enterprise Program Loan to purchase new equipment and create 54 new jobs. Dock and Lift Yard 1996, HRA-EDA assisted the company with a Business Enterprise Program Loan to purchase new equipment and build an addition to their facility in the Wyoming Industrial Park, creating 7 new jobs. County Line Iron 1996, HRA-EDA assisted with a Business Enterprise Program Loan for the purchase of equipment, resulting in the creation/retention of 22 jobs. 1997, HRA-EDA created a Tax Increment Finance District to assist the company in the construction of a new 11,000 sq. ft. addition to their facility, creating 10 new jobs. Wyoming IGA 2000, Tax abatement assistance was provided for 9 storm water improvements. The base value of the property was $233,400; the 2004 value is $1,007,200, an increase of over $770,000 to the tax base. DCS Manufacturing 2000, HRA-EDA assisted the company with a Business Enterprise Program Loan to purchase new equipment, creating 4 new jobs. General Safety HRA-EDA assisted the company with a Business Enterprise Program Loan to purchase new equipment and retain 60 jobs General Safety requested HRA-EDA s assistance in constructing a 10,000 sq. ft. addition to their existing 40,000 sq. ft. manufacturing facility. The expansion gives the company space to produce components on site that are used in their custom built fire and emergency vehicles. Ten to twelve new jobs, at an average of $17 per hour, will be added to the area. The Tax Incentive Assistance, $6,000 per year for 10 years, was instrumental in preventing the company from relocating 60 existing Chisago County jobs to South Dakota. Polaris Industries 2004, HRA-EDA assisted Polaris Industries in the search for a building site and financing for a 120,000 sq. ft. research, design, and engineering facility. The company will bring over 300 new engineering and technical jobs to the area. Construction began in 2004 on the former site of the Wyoming Wastewater Treatment Facility.

10 Wyoming Wastewater Treatment Project 2004, HRA-EDA assisted the City of Wyoming secure $1.5 million in state grant funds, $1.5 million in federal grant funds, and a $3.8 million low interest loan from the MN Public Facilities Authority for the purpose of financing the city s connection to the Chisago Lakes Joint Wastewater Treatment Facility. Job Opportunity Building Zone HRA-EDA assisted Wyoming in the application of a newly created state program allowing certain types of businesses to take advantage of tax incentives at the state and local levels. In early December 2003, the Minnesota Dept. of Employment & Economic Development announced that a Job Opportunity Building Zone was awarded for a 620-acre site for the Polaris project. The land purchased by Polaris is anticipated to generate approximately $100,000/year in city Wyoming Oakwood Town homes HRA-EDA is a co-owner and asset manager of a 48-unit family townhouse development located on Goldman Blvd. The two-story units include attached garages and playground, and are located on a four acre wooded site. Phase I was completed in May 1998 and Phase II was completed in March The project was financed through the Minnesota Housing Finance Agency s Federal Tax Credit Program and was the collaborative venture project of Duffy Development, Inc. and Chisago County HRA/EDA. Wyoming Library 2004, HRA-EDA issued revenue bonds to finance the construction of the new Wyoming Library. The project is under construction and will be completed in HRA-EDA Housing Activities Home Improvement-Home Purchase Programs: The HRA-EDA has administered the Minnesota Housing Finance Agency s home improvement and housing rehabilitation programs since The Deferred Loan Program, Revolving Loan Program and Rehabilitation Loan Programs are targeted to low and moderate-income families of Chisago County to help with basic repairs to keep their homes safe, livable and accessible. These funds are in the form of grants, low interest loans and deferred mortgages. Since 1993, the HRA-EDA has assisted 104 homeowners access these funds with loans totaling approximately $765,500. The Fix-Up Fund Loan Program, Home Energy Loan Program, and the Community Fix-Up Fund Loan Program are targeted to the low and moderate-income families of Chisago County to provide low interest loans for home improvements, energy efficiency and accessibility improvements. Since 1996, the HRA -EDA has assisted 15 homeowners with loans totaling approximately $202,600. First Time Home Buyer Programs: The HRA-EDA has participated in the Minnesota Housing Finance Agency s Minnesota City Participation Program, First Time Home Buyers Program. This program provides mortgage loans for low and moderate-income, first-time homebuyers, with below market interest rates. Since 1999, the HRA-EDA has assisted 41 homeowners with 10

11 2005 Economic Development Work Plan I. The HRA-EDA will work to retain our existing businesses by... Working with the State Legislature to level the playing field with Wisconsin, including the creation of a Border Cities Development Zone. Working with existing businesses on expansion opportunities. Continuing the County s Business Retention and Enhancement Program. II. Work to expand the commercial/ industrial tax base in Chisago County to reduce the tax burden for all residential taxpayers in the county by... Implementing the Chisago County Land Acquisition Program. Marketing Chisago County to new businesses as a great place to live, work and do business through advertisements placed in Positively Minnesota, DEED, MN Real Estate Journal, etc. Supporting and encouraging new business development through financing programs and site selection. Working with communities to provide TIF/Tax Abatement assistance to finance infrastructure improvements and 11 offer other business incentives. Working with cities/townships to identify and protect areas that are suitable for commercial and industrial development. III. Assist those businesses that will create new jobs, retain existing jobs, and increase wages for residents in the county by... Working with existing businesses on expansion opportunities, financing programs and workforce programs. Encouraging and supporting development of new high-tech, high-wagepaying businesses in the county. Working with State Agencies, private developers, brokers and builders to identify potential new business relocation and expansion opportunities. Creating a Countywide Technology Revolving Loan Fund. Developing a technology campus that focuses on high-tech businesses. Working with the Department of Employment and Economic Development to create a model that will help determine the impact of new jobs in the county Housing & Community Development Work Plan The HRA-EDA will continue its efforts to develop senior housing: HRA-EDA is in the process of developing a 20-unit senior apartment complex in collaboration with Rush City. The master plan for the development also includes for-sale senior town homes, a community center, and a future assisted living facility. Construction will begin in May, HRA-EDA will continue to promote and maintain a high quality of life, by...» Assisting communities redevelop and rehabilitate substandard homes and commercial properties.» Assisting communities increase the availability of affordable rental housing for seniors and families.» Continuing to apply for, and administer Minnesota Housing Finance Agency Program Funds, Small Cities Development Program Funds, and other funding sources, in the construction of new housing units and the rehabilitation of commercial buildings, owneroccupied and rental housing units.

12 Chisago County HRA-EDA th Avenue P.O. Box 410 North Branch, MN Phone: Fax: Website: Inside this issue: The Mission of Chisago County HRA-EDA Commercial/Indust. Market Values Page 2 Page 2 State of the County Page 3 What is TIF/TAX Page 4 County Programs at Work 15 Years of HRA/EDA Development Page 4 Pages Work Plan Page 11 The basic component of an economic base, is the production of goods and/or services that are exported, bringing outside wealth into the area. The economic base theory argues that economic development occurs when there is an expansion of the economic base, producing direct, indirect and induced benefits. For example, if a huge pocket of gold was discovered in the middle of nowhere, and a company started a huge mining operation, jobs would be created in an extractive industry or a base industry. The gold would be exported. The company would earn income. Miners (employees) would be paid wages. In all likelihood, a city would spring to life near the gold mine, deriving significant direct economic benefits. There also would likely be indirect economic benefits. The company would need construction workers (i.e. carpenters, plumbers, electricians); new suppliers and new infrastructure would be developed. Skilled trades people would find a wealth of opportunities. The new workers and new businesses would likely have consumer needs, and the induced economic benefits would accrue to a grocery store, a pharmacy, restaurants, a lumberyard, and other types of businesses. The new town would need doctors, dentists, chiropractors, insurance agents, bankers, government employees (such as teachers, police officers, and a city administrator) along with many other types of workers as a community was built. It would all happen because of the gold mine, the extracting industry the economic base. In summary, economic development organizations (including the Chisago County HRA-EDA) strive to expand the economic base, producing direct economic benefits. As the export base grows, bringing more wealth into a community, a portion of these receipts is spent on local consumption creating a multiplying effect. The rounds of spending create indirect and induced economic benefits, thereby creating an expansion of jobs, income, value-added in short, economic development. 12