Tax Exemption (Commercial & Industrial)
The City's Urban Revitalization ordinance provides for the exemption of property tax on all or a portion of the value added to a property as a result of new development or renovations of commercial and industrial properties. Qualifying projects can select one of two exemption schedule options:
-100% exemption from taxation on the value added by improvements for three (3) years.
-Partial exemption from taxation on value added by improvements for a period of 10 years. The amount of the partial exemption is equal to a percent of the actual value added as follows:
-1st year: 80% -2nd year: 70% -3rd year: 60% -4th year: 50% -5th year: 40%
-6th year: 40% -7th year: 30% -8th year: 30% -9th year: 20% -10th year: 20%
Urban Revitalization Program Overview
Urban Revitalization Application
One of the most significant and widely-used powers given to
city councils under the state's Urban Renewal Act is the authority to utilize Tax
Incremental Financing (TIF). TIF enables
the city to capture the increase in property tax dollars generated from new private
development to pay for certain pubic improvements and business incentives. For example, when deemed by the City Council
to be in the best interest of the city, TIF revenues may be used to provide for
infrastructure improvements (streets, sewer, water) or to provide
assistance (in the form of grants) to private businesses for economic
development purposes. Algona has been
involved in providing economic development incentives and infrastructure
improvements since establishing its first Urban Renewal ordinance in 1994. Contact the City's Community Development Director for additional information.
TIF Program Policies
Revolving Loan Funds
There are a variety of Revolving Loan Funds (RLF) available for gap financing for projects in in Algona provided by the City, Algona Municipal Utilities, and other agencies.
City Commercial & Industrial RLF
This RLF provides financial assistance to encourage new business start-ups, expansion of existing businesses, and the relocation of out-of-state businesses to Algona. Funds may be used for the acquisition, construction, reconstruction, or installation of commercial or industrial buildings, structures, and other real property; acquisition of equipment and machinery; reuse of vacant or abandoned facilities; modernization of plant equipment or machinery; and product development and marketing.
This fund is closely tied to employment, requiring the creation of five or more permanent full-time jobs (with an average wage of at least 100% of Low-to-Moderate Income wage rate) or a minimum ratio of one permanent full-time job created or retained for every $10,000 in assistance. City RLF funds cannot exceed more than 25% of the total project cost. Contact the Community Development Director for additional information.
City Retail RLF
Provides financing up to $15,000, with a maximum term of five years. Interest rates vary from 0% to 5% based on need, traditionally loans have been at or near 0%. There are no job creation or wage requirements for the Retail RLF.
Retail RLF Brochure
Retail RLF Application
Through the RLF, Algona Municipal Utilities (AMU) seeks to improve the quality of life by contributing to the long-term improvement in the economy, including job creation and retention, diversification of the economy, improving workforce skills, and upgrading infrastructure. The RLF provides financing from $5,000 to $150,000. Loan interest rates vary based on prime interest rate. The AMU RLF guidelines and application are available online at: www.netamu.com/economicdevelopment.php.
AMU RLF Brochure
The Kossuth County Economic Development Corporation (KCEDC) RLF was established to encourage existing local and new businesses to expand by providing supplemental financing. The RLF supports growth of community industrial parks and entices business and industry to expand in Kossuth County. Generally, the term of the loan will not exceed 10 years and the loaned funds shall provide no more than 35% of the financing for any project up to a maximum of $50,000. To learn more, visit the KCEDC website at www.kossuth-edc.com or call their office at (515)295-7979.
KCEDC RLF Brochure
The North Iowa Council of Governments (NIACOG) provides low-interest loans located in the NIACOG region (which includes Kossuth County) with a goal to provide job creation and retention. Visit www.niacog.org for more information.
NIACOG RLF Brochure