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Economic Development: In
recent years, the City of Hallock
has had some success in helping
commercial and residential
development within the city. Through
a Tax Increment Financing plan, the
City has helped develop a hardware
store, eye clinic, motel and bank.
The Hallock Economic Development
Authority (EDA) was created in 1995
and has helped develop a motel,
restaurant, eight-plex apartment as
well as participate, on a smaller
scale, with several of other
business expansions.
 The Hallock City Council and EDA
have begun to shift their focus to
industrial and manufacturing. In
recent years, availability of land
in our 35-acre industrial park has
become very limited. The City has
purchased an additional 35 acres of
land adjacent to the current
industrial park. All of these
available acres are in the JOBZ zone
and have access to water, sewer and
natural gas service.
Recently, the City has developed
a large residential housing
addition. As a result of the 1997
flood, rural residents increased the
City’s need for affordable building
sites. The City received a grant to
develop the housing addition. As of
today, nine homes have located in
this area. There are several
building sites available for sale.
JOBZ:
In 2003, the Minnesota
Legislature past legislation
designed to help stimulate
investment in rural Minnesota.
Hallock has created several JOBZ
zones. The JOBZ zones allow
substantial tax relief to companies
who locate or expand within the JOBZ
acreage. The state and local tax
exemptions would include corporate
and individual income taxes, real
estate tax on the increased
valuation and sales and use tax on
new investment. The tax incentives
are designed to last through the
year 2016.
JOBZ ELIGIBILITY:
To qualify for the tax
exemptions, a company would need to
re-locate or expand within the JOBZ
acreage. The company would need to
enter into an agreement with the
City of Hallock, meeting certain
employment goals and wage standards.
JOBZ, MORE INFORMATION:
For more information about JOBZ,
contact City Clerk, Hank Noel at
218-843-2737 or The State of
Minnesota has a terrific web site
that provides substantial
information about the JOBZ program,
including a calculator that can be
project specific as far as estimated
tax savings. The web site is located
at:
TAX INCREMENT FINANCING (TIF):
Tax Increment Financing (TIF) is
an incentive that has been widely
used throughout Minnesota over the
last 30 years. Briefly, a developer
has an opportunity to "capture" the
real estate taxes paid on a property
for several years after the
development of the property.
 The
developer does not capture all of
the taxes paid, only the increased
taxes resulting from the
improvements made or increase in
taxable value (increment). Also,
since 2003, the increased school
district taxes are no longer
captured, making this option less
beneficial. Developers who are
eligible for JOBZ incentives would
likely take that option, but many
developments such as retail and
service are not eligible for JOBZ
and could likely qualify for TIF.
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