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Redevelopment loans

Published (4/27/2012)
By Nick Busse
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Local governments could apply to the state for loans to demolish old buildings and make way for economic redevelopment.

Sponsored by Rep. Bob Gunther (R-Fairmont), HF1721 would tap into a fund used for redevelopment grants in Greater Minnesota. Loans made from the fund could be used to tear down properties that pose a public safety threat and that meet certain other criteria.

“This is a way that you can take and destroy unused, unoccupied buildings, so you can make room for new taxable property by putting in light industry and other types of businesses in that property,” Gunther said.

The House passed the bill 110-14. It now now awaits action by the full Senate. Sen. Julie Rosen (R-Fairmont) is the Senate sponsor.

The bill would also create an ombudsman within state government to help small businesses navigate government regulations. The “small business advocate office” would be established within the Department of Employment and Economic Development.

According to the bill’s language, the office would provide “one-stop access” for businesses in need of information or assistance in obtaining or renewing licenses, meeting state regulatory requirements, or resolving disputes with state agencies.

Another provision in the bill would address an issue in Albert Lea, where the city has excess sewer capacity and seeks to entice new industrial developments. It would allow the city to establish a “sewer charge rebate program” to incentivize new or expanded businesses.

Rep. Tim Mahoney (DFL-St. Paul) supported the bill, but he criticized House Republicans for not putting more funding into programs that help small businesses grow.

“This is the omnibus jobs bill for this year,” he said. “We’re not doing anything to help small businesses move forward.”

Rep. Keith Downey (R-Edina) responded that DFLers are to blame for not supporting tax relief measures that would help businesses.

“It’s really something to think that the only concept of a jobs bill on the other side of the aisle is that the state is going to pass a bunch of spending,” he said.

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