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211 <br />Economic Development Tools <br />The City of Ramsey has a number of financial tools available for economic development projects. <br />Below is an 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. <br />A financial gap occurs when private financing and/or owner equity cannot fund an entire project. <br />Commonly, these programs are used to purchase equipment; however, other eligible uses exist. <br />Interest rates and terms are negotiable. <br />Deed Job Creation Fund: <br />DEED assistance to projects that have capital investment and provide well -paying jobs. Program <br />would allow for a company to receive a 5% rebate on capital expenditures (construction costs, <br />materials etc.) up to $500,000. In addition, this program allows for up to $500,000 in job creation <br />rebates based upon jobs created and their salary levels. <br />Property Tax Programs: <br />Tax abatement and TIF are local tax programs typically used for public infrastructure or land <br />acquisition costs. In general, both programs work by capturing property taxes generated by a <br />particular parcel then 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 <br />program requirements and in many cases approval from the Ramsey EDA and City Council. The <br />City of Ramsey targets quality projects with high quality job growth. Typically, projects require <br />owner equity and/or private financing. Most programs require specific job creation goals and <br />annual reporting. <br />city of RAMSEY <br />Comprehensive Plan 2040 <br />