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South Otsego Avenue Development

Corridor Improvement Authority (CIA) - The CIA is a DDA type authority that can use Tax Increment Finance (TIF) to fund public and private improvements in established commercial corridors.  A CIA has not been established for the South Otsego Corridor, but would be a potential tool to support a major redevelopment project in this area.  The CIA would be the body that would plan as well as finance public and some private improvements using tax increment revenues.  The CIA is a board established by the City of Gaylord. 

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Brownfield MBT Tax Credits - Significant redevelopment projects may be eligible for Brownfield MBT tax credits of potentially up to 20% of eligible project investments. Depending on the nature of the site and development, state Brownfield loan or grant funds may also be available for use in defraying the cost of conducting environmental assessments and preparing a baseline environmental assessment.  The Otsego County Brownfield Redevelopment Authority is the conduit for accessing this assistance.

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Infrastructure Financing - Public improvements may also be able to be funded in part from MDOT Enhancement and MEDC Community Development Block Grant programs although both programs require local matching funds which can be financed through CIA TIF or developer contributions.  

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Commercial Redevelopment Act (CRA) Tax Abatement -  The CRA allows the City to grant a tax abatement similar to an Industrial Facilities Tax abatement (50% reduction of local mills levied, but excludes land and personal property for new projects and freezes existing taxable value for rehabilitated buildings, but also excludes land and personal property).  The CRA abatement is an additional incentive that would have to be judiciously used if a TIF district were established as part of a CIA.  The CRA is also handled through the City.