Business Incentive Programs
Chaska has several business incentive programs tailored to further attract desired businesses to the community and to help fill any financial gap with expansion. In addition, City officials work closely with County, Regional, State, and Federal colleagues with all components of the approval process. There are many examples in Chaska of successful companies such as Beckman Coulter, UnitedHealthGroup, Stream Data, and Bailiwick, where City officials have partnered with other government entities. More specifically, over the past decade we have received well over $10 million dollars in grants to help facilitate economic development activities.
Based on the specific needs of each business, City staff works as an advocate in putting together a business assistance incentive package to ensure success. Some of the most popular programs include:
- Tax Increment Financing---for brownfield or redevelopment projects, the City is able to use the new taxes that are generated to help off-set site development expenditures such as grading, utilities, demolition, environmental remediation, etc.
- Tax Abatement---The City offers new businesses/expansion tax abatement for a total of three times the annual total of new property taxes generated to help off-set site preparation costs. What does this amount to? Depending on the assessed value of the property, incentive amounts could range from $50,000 to $3,000,000 over the course of 20 years.
- Chaska Electric “Energy Retrofit Program”---For properties within its electric territory, the City of Chaska offers lighting retrofit, variable frequency drives, and custom retrofit incentive programs to businesses to promote energy efficiency. Rebate amounts can be as high as $150,000.
- Chaska Electric “Energy New Construction Program”---For properties within its electric territory, the City of Chaska offers lighting rebates for high efficiency lighting, variable frequency drives, and custom new construction incentive programs to businesses to promote energy efficiency. Rebate amounts can be as high as $150,000.
- Carver County Business Loan Fund--- Carver County offers up to $500,000 in low interest loans. The intent of the initiative is to provide attractive capital to successful and financially strong Carver County businesses helping them grow and expand their investment and work force. Eligible expenses include construction and equipment costs.
- Minnesota Investment Fund--- This State of Minnesota incentive offers up to $1,000,000 in low interest and forgivable loans. The intent of the initiative is to provide attractive capital to successful and financially strong businesses helping them grow and expand their investment and work force. Eligible expenses include construction and equipment costs.
- Innovative Business Development and Infrastructure Grant---A state-sponsored program that provides up to $500,000 in reimbursable public infrastructure costs for private development. Eligible expenses include: stormwater systems, utility connections, parking and street improvements.
- Job Skills Training---This program, offered by the State of Minnesota, provides up to $400,000 in grants for the training and/or retraining of workers in conjunction with an accredited educational institution. This program does require a match from the company which is generally covered by the company paying the employees to attend the training.
- Job Creation Fund---While the details are still being worked out, this program, offered by the State of Minnesota, will provide funding for projects that include a high number and high-wage jobs. This program will commence in 2014.
- Foreign Trade Zone---The City has also in one of the few defined foreign trade zones within the State. This incentive allows for duty elimination, inverted tariff relief, and ad valorem tax exemptions on the imported and exported goods that are manufactured here.