Information for Prospective Developers
The City of Lake Crystal is eager to work with prospective Developers in bringing new projects to the City. Contact the city’s EDA Director, Joshua Schuetz, for more information.
Below are some local and regional resources available for businesses.
Tax Increment Financing (TIF): TIF is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community improvement projects. Simply put, TIF uses future gains in property taxes to subsidize current improvements, which are projected to create the conditions for said gains. The completion of a public or private project often results in an increase in the value of surrounding real estate, which generates additional tax revenue. That additional revenue is then used to help offset the costs of a project in order to get it built or completed.
Tax Abatement: Tax abatement is the reduction of or the exemption from taxes granted by a City for a specified period of time, usually to encourage certain activities such as development or redevelopment. This encourages Developers to build since the City exempts taxes normally assigned to the project for a period of time, thus reducing the Developer's overall cost. In Lake Crystal, tax abatement may be allowed on a case by case basis.
Heartland Energy Business Incentives: Heartland Energy provides incentives and loan programs for businesses located in the City of Lake Crystal. Visit https://heartlandenergy.com/for-your-business/ to learn more.
Southern Minnesota Initiative Foundation (SMIF): The Southern Minnesota Initiative Foundation provides loan programs, grants and technical assistance to businesses that meet eligibility guidelines. Some of these programs target existing businesses, while others are tailored for new entrepreneurs. Visit https://smifoundation.org/smif-business-financing/ to learn more.
Region Nine Development Commission (R9): The Region Nine Development Commission works to promote development in south central Minnesota. Region Nine has a revolving loan fund program for qualifying businesses. You can learn more here: https://www.rndc.org/what-we-do/revolving-loan-fund/