The long anticipated 610 connection was completed last fall. It connects Interstate 94 to Interstate 35W via Hwy 610/10. This connector provides greater access and convenience across the north metro. It has resulted in a great opportunity for commercial real estate development. At almost every exit there are new commercial developments. Many warehouses, charter schools, shopping developments, distribution centers, and Target North Campus have been built along this Highway. There is still a lot of undeveloped land available along 610 in both Maple Grove and Brooklyn Park. It may even be part of the site that Maple Grove submitted for Amazon’s second corporate headquarters. With access points at HWY 252, HWY 169, HWY 10, and I-94 it is a great place for greater access to the region. It will also be connected at West Broadway and 610 to downtown with the Blue Line extension.
Tax Increment Financing (TIF): What is a TIF and how can it help with your commercial real estate developments?
You may have heard other developers and commercial real estate brokers talking about the use of TIF, an abbreviation for Tax Increment Financing to help finance their deals. We are going to go through a series of blogs explaining What TIF is, and how it can be used to help with your real estate planning.
TIF is a gap financing tool used to help the developer or company in meeting the financing gap in a development or redevelopment project. There are different kinds of TIF. For example, Economic Development TIF Districts are used to discourage commercial or industrial relocation; to increase employment or to preserve or and enhance the tax base. Hazardous Substance sub districts and Soil Conditions districts are used for the removal or remediation of hazardous substances, pollution or contaminants. Housing Districts are intended for occupancy, in part, by persons or families of low and moderate income. This is called Affordable Housing. Redevelopment TIF districts are used for areas where most of the land has been developed but usually where most of the buildings are substandard. Renewal and Renovation districts are for areas where most of the land has been developed and where a portion are substandard or in need of rehabilitation.
Disclosure: Nothing in this blog is meant to be legal advice. Please consult with your attorney and be sure you fully understand TIF before considering using this type of financial tool.