6.0. EDSR 04-10-2006 - Laserfiche WebLink

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CITY OF ELK RIVER POLICY AND PROCEDURES RELATING TO THE USE OF BUSINESS SUBSIDIES I. PURPOSE Far the purporer of fbu document, the Term "City"ball Lxrlude the Elk River Cify Coundl, Pconomu Develapmemt Authority, anti Housing autl Aerlevelapmeut Autbority~. "I'he purpose of this policy is to establish guidelines and criteria regarding the use of business subsidies, such as tax increment financing (TIF), tax abatement, and other business subsidies fox private development projects within the City of Elk River [ hts poles Shall be us< e~_;ts "Deleted: a..d crttcu t for nx`~iidu~ vy ~,~,tdi4~,,,in addition to the requirements and limitations set foxrh by __ provisions of :Minnesota State Statute 116].993 (1b1N Business' Subsidy Law), and jhe City's __ oeleted:by ~I policy and guidelines of the particular foam of subsidy. These guidelines shall be used in processing and reviewing applications requesting business _.._ _ subsidyassistance. The fundamental purpose of business substdies in [he City is to Deleted: ,~. __ _ _. encourage desirable development ox redevelopment that would not otherwise occur "but for" the assistance provided through business subsidies. It is the intent of the City to provide business subsidies, as well as other incentives that the City may deem appropriate, a[ the shortest term required fox [he project to proceed. The City reserves the right to approve ox reject projects on a case-by-case basis, taking into account established policies, specific project criteria, and demand on city services in relation to the potential benefits to be received from a proposed project. Meeting policy guidelines ox other criteria does not guarantee the award of z,business substd,;, Furthermore, the oeletedo~,r. approval ox denial of one project is not intended to set precedent fox approval ox denial of another project. Whenever possible it is the City's intent to coordinate the use of business subsidies with other applicable taxing jurisdictions. II. DEFINITION OF "BUSINESS SUBSIDY" The following types of assistance having a value in excess of $25,000 axe defined as a "business subsidy" within the :~IIQ Business Subsidy Law: • State and local govemment agency giants; • Contributions of personal property, real property, ox infrastructure; • The principal amount of a loan that exceeds $75,000 at rates below those commercially available; • Reductions or deferrals of taxes ox fees; • Guarantees of any payment under any loan, lease, ox other obligation; and, • Preferential use of government facilities. City of lilk Rivet Business Subsidies Policy 1" llraft Amended April 2006