Revenue bond program

This program is for industrial, commercial and medical facilities; multifamily rental housing; nursing homes and some nonprofits.

Revenue bonds

Revenue bonds can be used to finance:

  • Industrial, commercial and medical facilities
  • Multifamily rental housing
  • Nursing homes
  • Some nonprofit activities

They can fund projects like:

  • Land acquisition
  • New-facility construction
  • Additions to existing facilities
  • Purchase and renovation of existing structures
  • Production and equipment purchases

State and local government agencies may issue tax-exempt or taxable revenue bonds on behalf of private borrowers to provide lower interest rates on long-term financing.

  • Revenue bonds for industrial/manufacturing, medical facility, 501(c)(3) nonprofit or nursing-home projects are generally tax-exempt
  • Revenue bonds for commercial projects are taxable

Eligibility requirements

You can apply to this program if you are a:

  • Business or business owner in Minneapolis
  • Business owner or developer planning to locate in Minneapolis
  • Business with facilities outside Minneapolis, primarily if they are Minneapolis-based firms with facilities both in and outside the city or for projects that serve a public purpose.
  • Bars, restaurants, entertainment facilities and start-up firms are not eligible

Program details

  • Revenue bonds are marketed to either institutional investors - insurance companies, banks and pension funds or sold to the general public through a public offering. This results in interest-cost savings to borrowers.
  • Bond underwriting firms will prepare an official statement to market the bonds to the public.
  • Revenue bonds are issued either free-standing or through the Minneapolis Common Bond Fund (CBF).
  • Free-standing revenue bonds are issued with the strength of the project dictating terms and conditions of financing and interest rate.
  • Bonds issued through the CBF are investment-grade with an "A+" municipal-bond rating based on the security provided by the CBF, resulting in lower interest rates.

Rates, terms and fees

  • Revenue bond issuance expenses include bond counsel, underwriter, corporate counsel, inspecting architect, title insurance and other fees. These fees may be financed through the revenue bond up to certain limits.
  • Tax-exempt revenue bonds can be issued below commercial market interest because interest earnings to the purchaser are generally exempt from federal, state and local income taxes.
  • Revenue bond financing can be fixed rate, with terms of 20 to 30 years, often at interest rates below or equal to market interest.


  • A City of Minneapolis staff person will handle your revenue bond request from initial inquiry through post-closing monitoring.
  • The complete public approval process takes about 90 days.
  • The City of Minneapolis approve revenue bond projects based on financial strength; credit worthiness; public purpose served, such as preserving and creating jobs; and increasing the real estate tax base.

Application materials

  • Narrative on the company and owner(s)
  • Financial statements for the past three years and any interim statements
  • Personal financial statements of anyone owning more than 20 percent of the company
  • General description of the proposed project, plans and estimates of project costs
  • Appraisals and environmental reports about the proposed project

Contact us

Becky Shaw

Community Planning & Economic Development




Public Service Building
505 Fourth Ave. S., Room 320
Minneapolis, MN 55415