5.1. SR 06-24-2002 - Laserfiche WebLink

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using additional TIF funding. 5. TAX INCREMENT PROJECT EVALUATION CRITERIA 5.01 All projects will be evaluated on the following criteria for comparison with other proposed TIF projects reviewed by the City, and for comparison with other subsidy standards (where appropriate). It is realized that changes in local markets, costs of construction, and interest rates may cause changes in the amounts of Tax Increment subsidies that a given project may require at any given time. 5.02 Some criteria, by their very nature, must remain subjective. However, wherever possible "benchmark" criteria have been established for review purposes. The fact that a given proposal meets one or more "benchmark" criteria does not mean that it is entitled to funding under this policy, but rather that the City is in a position to proceed with evaluations of(and comparisons between) various TIF proposals, using uniform standards whenever possible. 5.03 Following are the evaluation criteria that will be used by the City of Pequot Lakes A. All TIF proposals should optimize the private development potential of a site. All TIF proposals should obtain the highest possible private to public financial investment ratio. The Council establishes a benchmark ratio of 3 parts private to 1 part public funding for projects. Housing and retail/commercia! projects shall be reviewed on an individual basis. All TIF proposals should create the highest feasible number of jobs on the site. The Council establishes a benchmark of one newly created FTE job per $6,000 of TIF assistance or one retained FTE job per $3,000 of TIF assistance provided to projects and establishes a benchmark of one newly created FTE job per $10,000 of TIF assistance or one retained FTE job per $3,000 of TIF assistance provided to the Industrial Park Project Area. All jobs will be "Living wage jobs" as determined by the Department of Labor All TiF proposals should create the highest possible ratio of property taxes paid before and after redevelopment. Given the different assessment circumstances in the City, this ratio will vary widely. However, under normal circumstances, the Council will expect at least a 1:2 ratio of taxes paid before and after redevelopment. TIF proposals should normally not be used to support speculative industrial, commercial, and office projects. In general, speculative projects are defined as those projects which have letters of intent or pre-leasing for less than 50% of the available leasable space. All TIF proposals will be reviewed to determine the feasibility to provide the City with equity participation in new developments (through a share of the profits), or to treat the TIF assistance as a second mortgage with fixed payments. All TIF proposals involving displacement of low and moderate income residents should give specific attention to the re-housing needs of those residents. Normally, this should be done as a part of the TIF funding proposal. Adequate solutions to these re-housing needs will be required as a matter of public policy. H. TIF will normally not be used in a project that involves an excessive land and/or property price. This will normally be where the acquisition price is more that 10% in excess of market value.