St. Cloud Economic Development Authority Closes Tax Increment Financing District Early

(KNSI) – The St. Cloud Economic Development Authority was able to close a Tax Increment Financing district for Microbiologics early at Tuesday’s meeting.

Director Cathy Mehelich explains the purpose of a TIF district. “It utilizes the new development’s increase in taxes to help fund eligible costs of getting that development to happen.”

In the case of Microbiologics, the city spent $250,000 to demolish existing buildings and renovate others to facilitate the business’s expansion. Microbiologics has even purchased some nearby blighted homes that could facilitate further growth for the facility in the future.

Once the TIF is paid off, property and other city taxes generated by Microbiologics will go to the general fund to help pay for standard city services and operating costs, no different than how the average household is taxed.

Mehelich discusses why the $250,000 the city had committed in 2011 was repaid promptly. “I really think the cause of the early payback in this case with Microbiologics is they did a second expansion in that term. As a result of that expansion, their taxes continued to go up.”

Mehelich says as Microbiologics grew, the company hired more workers, made improvements at its property, and all of this is a boon to St. Cloud as a whole.

___