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• To facilitate the development process and to achieve development on sites <br />which would not be developed without Tax Abatement assistance. <br />• To remove blight and/ox encourage redevelopment of commercial and <br />industrial areas in the city that result in high quality redevelopment and private <br />reinvestment. <br />• To offset increased costs of redevelopment (i. e. contaminated site clean up) <br />over and above the costs normally incurred in development. <br />• To create opportunities fox affordable housing. <br />• To contribute to the implementation of other public policies, as adopted by the <br />city from time to time, such as the promotion of quality urban ox architectural <br />design, energy conservation, and decreasing capital and/ox operating costs of <br />local government. <br />• To significantly increase the City of Elk River's tax base. <br />IV. POLICIES FOR THE USE OF TAX ABATEMENT <br />a. Tax Abatement assistance will be provided to the developer upon receipt of <br />taxes by the City, otherwise referred to as the pay-aryou po method. Requests <br />fox up front financing will be considered on a case-by-case basis. <br />b. Any developer receiving Tax Abatement assistance shall pxocidc a minimum <br />of ten percent (10%) owner cash equity investment in the project. <br />c. Tax Abatement will not be used in circumstances where land and/or <br />property price is in excess of fair market value. <br />d. Developer shall be able to demonstrate a market demand fox a proposed <br />project. <br />e. Tax Abatement will not be utilized in cases where it would create an unfair <br />and significant competitive financial advantage over other projects in the <br />area. <br />£ Tax Abatement shall not be used for projects that would place extraordinary <br />demands on city services ox for projects that would generate significant <br />environmental impacts. <br />g. The developer must provide adequate financial guarantees to ensure <br />completion of the project, including, but not limited to: minimum assessment <br />agreements, letters of credit, personal guaranties, and etcetera. <br />h. The developer shall adequately demonstrate, to the City's sole satisfaction, an <br />ability to complete the proposed project based on past development <br />CiTy of Elk River <br />Tax Abatement Policy <br />1" Draft Amended March 2006 _ ¢_ <br />