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Economic Development Tools <br />The City of Ramsey has a number of financial tools available for economic development projects. Below is an <br />overview of the most commonly used economic development tools. <br />GAP FINANCING: <br />The City's RLF and the DEED MIF programs are used to fill the financial "gap" of a particular project. A <br />financial gap occurs when private financing and/or owner equity cannot fund an entire project. Commonly, <br />these programs are used to purchase equipment; however, other eligible uses exist. Interest rates and terms <br />are negotiable. <br />DEED JOB CREATION FUND: <br />DEED assistance to projects that have capital investment and provide well -paying jobs. Program would <br />allow for a company to receive a 5% rebate on capital expenditures (construction costs, materials etc.) up to <br />$500,000. In addition, this program allows for up to $500,000 in job creation rebates based upon jobs created <br />and their salary levels. <br />PROPERTY TAX PROGRAMS: <br />Tax abatement and TIF are local tax programs typically used for public infrastructure or land acquisition <br />costs. In general, both programs work by capturing property taxes generated by a particular parcel then <br />dedicating said tax revenue for a specific project cost. <br />Eligibility for financing tools based on the merit of an individual project, compliance with specific program <br />requirements and in many cases approval from the Ramsey EDA and City Council. The City of Ramsey <br />targets quality projects with high quality job growth. Typically, projects require owner equity and/or private <br />financing. Most programs require specific job creation goals and annual reporting. <br />City of Ramsey 2040 Comprehensive Plan Update <br />Economic Development Plan <br />Page 12of15 <br />