7.0. EDSR 04-10-2006 - Laserfiche WebLink

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ITEM # 7. ver MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development//~%/ DATE: March 13, 2006 t~ ~ SUBJECT: Discuss Draft Amendments to the City's Tax Increment Financing Policy and Application Attachments • Tax Increment Financing Policy and Application, 1" Draft Amended Apxi12006 Background Staff has been working on a review of the city's various economic development fmancing programs and policies for amendments. The City of Elk River adopted its original Tax Increment Financing Policy in August 1991. The policy was amended in March of 2000 to include the provisions of the MN Business Subsidy Law and the City's Business Subsidy Policy. Issue Since the many of the amendments were minor (but significantly affected the document reformatting) staff has provided the attached clean copy of the revised policy and application for the EDA's review. Please contact staff if you wish to receive a copy of the word-by- woxd tracking of revised policy amendments. Below is a summary of the significant staff amendments: • Added the following objectives to the use of TIF (Section II) *To significantly increase the City's tax base * To enhance and diversify the City's economic base • Reduced the owner cash equity requirement from 20% to 10% (Section III) • Added provision that all TIF proposals optimize the private development potential of a site (Section III) • Increased the following project qualifications (Section I~ o Minimum increase of $37,500 per year in property taxes (originally $25,000) o Result in a minimum market value of $1,250,000 (originally $1,000,000)