7.0. EDSR 04-10-2006 - Laserfiche WebLink

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V. CITY OF ELK RIVER BUSINESS SUBSIDY POLICY All developers/businesses receiving tax increment financing assistance from the City of Elk River shall be subject to the provisions and requirements set forth by the City's Business Subsidy Policy, as follows, and State Statute 116J.993. CITY OF ELK RIVER POLICY AND PROCEDURES RELATING TO THE USE OF BUSINESS SUBSIDIES -Adopted November 25, 2005 PURPOSE For the purpaser of tbzr document, the term `City"rhall include the Elk Bzver City Council, Economic Development Authority, and Houeing and RedevelopmentAutharity. The purpose of this policy is to establish guidelines and criteria regarding the use of business subsidies, such as tax increment financing (TI~, tax abatement, and other business subsidies for private development projects within the City of Elk River and shall be in addition to the requirements and limitations set forth by provisions of Minnesota State Statute 116J.993 (1~IN Business Subsidy Law), and by the City's policy and guidelines of the particular form of subsidy. These guidelines shall be used in processing and reviewing applications requesting business subsidies assistance. The fundamental purpose of business subsidies in the City is to encourage desirable development ox redevelopment that would not otherwise occur "but fox" 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, at the shortest term required fox the 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 business subsidies. Furthermore, the 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 MN Business Subsidy Law: • State and local government 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 Elk Rivet Tax Increment Policy & Application 1" Draft Modified Apri12006 Page 6 of 14