Incentives for Business Relocation  

The following incentives have been put in place by the City of Hartley to attract businesses:

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Industrial Property Tax Exemption

The City of Hartley offers to exempt from property taxation the actual value added to industrial real estate by new construction, and the acquisition of, or improvement to, machinery and equipment assessed as real estate. The following exemption schedule is applied in such cases:

Year # 1: 75% 

Year # 2: 60% 

Year # 3: 45% 

Year # 4: 30%

Year # 5: 15%

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O'Brien County Revolving Loan Fund

O’Brien County Economic Development Revolving Loan Fund is available to qualifying businesses which involve the creation of new jobs and income, or the retention of existing jobs and income that would otherwise be lost.

Revolving Loan Funds may be used for the following:

• Land Purchases
• Building Purchases
• Building Construction
• Machinery Purchases
• Equipment Purchases
• Any other uses deemed appropriate by the O’Brien County Revolving Loan Fund Committee.

The percentage rate of the loan is predicated upon payback time ranging from 40% if repaid within 2 years to 100% of commercial interest rate if paid back at 10 years.

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Tax Increment Financing

Tax Increment Financing (TIF) is a process whereby the taxes generated by new development are captured by the County and utilized to finance public improvements within the county or related to a specific economic development project. The way it works is that O'Brien County captures all new taxes generated in specific areas created for the purpose of economic development or the elimination of slum and blighting influences. We then may utilize these funds for the installation of sewers, water mains, storm sewers, street construction, or acquisition and clearance.

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Tax Abatement

A different program business owners might take advantage of is tax abatement.  The County may abate the property taxes on new developments for a period of years. The advantage is this program helps reduce the initial costs experienced by a new business.

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Iowa Values Fund

The Iowa Values Fund provides low interest and/or forgivable loans to qualifying businesses who qualify within the Advanced Manufacturing, Life Sciences, and Information Technology sectors and who maintain a certain wage and benefit standard.   For 2003 the average wage to meet the “quality jobs’” definition must be $9.29 per hour.

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Community Economic Betterment Account (CEBA)

If your business will create or retain jobs, the State of Iowa offers a program to help you.  The CEBA provides direct financial assistance to businesses for that very purpose. Forgivable and low-interest loans are available to businesses to expand or relocate to Iowa communities.

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Iowa State Targeted Small Business Loan Program

Women and minorities can take advantage of a loan pool established by the State of Iowa for the creation and expansion of small businesses. Loans are at a 4% interest rate with a maximum of $25,000 available. You need only have 10% of the grant amount in cash equity.

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State Enterprise Zone Programs

Certain properties and areas within Hartley have been designated Enterprise Zones. Tax credit incentives are offered to new business startups, existing business expansions or to developers who build housing units in an Enterprise Zone or businesses that hire workers who live in the Enterprise Zone.  Enterprise Zone projects must not have started prior to application and approval.  For 2003 the average wage to meet the 90% criteria must be $8.36 per hour. The employer must meet other criteria and the project must be $500,000 or more.

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Small Business Administration 7a Program

The 7a program is a loan guarantee program whereby a business will borrow financing from a local lender of choice for fixed assets or working capital. The loan can be a maximum of $750,000 with 20% - 50% down payment with terms set by the lending financial institution. The Small Business Administration guarantees the loan.

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Small Business Administration 504 Program

The 504 program is direct financing from SBA through a locally certified development corporation. Rates are fixed for a 20-year term at a rate reduced from bank financing.   A total of $1,000,000 is available per project and you can get away with having less down payment than standard financing.

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Iowa Industrial New Jobs Training Program

This program is available to new or expanding industrial (non-retail) businesses that produce products or services. The program is administered through the local community college and is designed to help pay the costs of developing work specific skills in employees. Northwest Iowa Community College in Sheldon will work with the company to design a training program to meet their specific needs.

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Iowa Small Business New Jobs Training Program

This program is similar to the Iowa Industrial New Jobs Training Program but is designed for smaller businesses. The funds may be used for skill assessment, orientation, pre-employment training, instructional salaries, seminar fees, and on-the-job.

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Notes

This program is available to new or expanding industrial (non-retail) businesses that produce products or services. The program is administered through the local community college and is designed to help pay the costs of developing work specific skills in employees. Northwest Iowa Community College in Sheldon will work with the company to design a training program to meet their specific needs.