1) EDA Revolving Loan Fund

The Caledonia EDA Intermediary Revolving Loan Program provides low-interest loans to businesses and individuals to promote job creation and retention, reduce blight, increase the tax base, and provide needed services in the community.. These loans provide gap financing and may be used for land acquisition, new construction, site improvements, renovations, machinery, and fixtures. Loan amounts are generally available for up to $25,000, but vary depending on the extent of the public purpose served by the project and the economic feasibility of the project.

2) Commercial Rehabilitation Loan (Façade Improvement)

The EDA offers assistance to commercial property owners in the Downtown Redevelopment Area who want to make physical improvements to the exterior of their building. Up to 33% of the project cost will be a forgivable loan; 33% percent of the project cost will be a 3% low-interest loan, and 34 % of the project cost will be owner’s equity. The Commercial Rehab Loan Program is administered by the Community and Economic Development Associates (CEDA).

3) Tax Abatement

The City of Caledonia offers tax abatements for economic development purposes. A tax abatement allows a property owner to receive a refund on a portion of their yearly property tax for a parcel. The abatement is usually based on the increase in a property’s value from a construction or renovation project. The yearly percentage of the abatement and duration vary based on the amount of the business investment and job creation.

4) Tax Increment Financing

For qualified applicants the City of Caledonia may institute a tax-increment financing district (TIF), in which the city would use the additional property taxes that a new real estate development project generates to assist with the costs of the development.

Business Assistance

Please download the Business Assistance Application or complete the application on-line. 

Once completed please return downloaded application to City Hall or mail to:

City of Caledonia

231 E. Main St.

P.O. Box 232

Caledonia, MN 55921

Download Business Assistance Application
On-Line Business Assistance Application

City of Caledonia Defective Sidewalk Replacement Program

The City of Caledonia values a safe, well-maintained network of public sidewalks. In an attempt to encourage property owners to replace defective sidewalks, the City offers a partial reimbursement for sidewalk replacement costs. All properties in the City are eligible. The additional terms of the program are as follows:

1)     The City will reimburse property owners 25% of the cost of labor and materials if the sidewalk is replaced by a contractor.

2)     The City will reimburse property owners 25% of the cost of materials (but not labor) if the property owner performs the work.

3)     The property owner must provide an invoice with the cost and total square footage of the sidewalk replaced. The maximum cost allowed per square foot is $7.00 for removal and replacement of sidewalk.

4)     The sidewalk must be located in the public right-of-way.

For more information about the program, please contact Public Works & Zoning Director Casey Klug at (507) 725-3462.