Laserfiche WebLink
Tax Rebate Financing Policy Amendment Issues <br />June 24, 2002 <br />Page 3 of q <br /> <br />In addition, a maximum amount of assistance can be set in relationship to the number of <br />jobs created or retained. The City's TIF policy includes a mimmum goal of one full-me <br />equivalent job per $25,000 of assistance. <br /> <br />Other Cities' Policies <br /> <br />Staff research of Anoka, Rogers, Ramsey, Otsego, Big Lake and Andover found limited to <br />no use of tax abatement, nor a policy. The City of Golden Valley and Hennepin County did <br />participate in tax abatement for the 400,000-square foot General Mills corporate office <br />development. <br /> <br />Proposed Criteria <br /> <br />If office development is desired, following are project evaluation criteria for consideration: <br /> <br />Types of Office Development <br />Eligible to speculative office, owner-occupied, or corporate-campus office development? <br />The City has in the past provided TRF and TIF assistance to speculative light-industrial <br />development. Typically, speculative office development is driven by market demand, not <br />public assistance, with the exception of redevelopment areas. <br /> <br />Requirement on percentage pre-leased or owner-occupied. SBA 504 financing requires <br />projects be 60% owner-occupied. Some cities reqmre speculative industrial, commercial and <br />office projects to have 50% of the available leasable space to be pre-leased. <br /> <br />Location of Office Development <br />Eligible for projects located in redevelopment areas only and/or Business Park? Providing <br />TRF in Business Park areas will likely create a competitive advantage over other offices <br />located in appropriately zoned areas such as Highway Commercial. If limited to the first <br />speculative office development in a Business Park area, staff recommends a request for <br />proposals be considered to evaluate the best development which requests the least amount <br />of assistance. <br /> <br />Minimum Requirements <br />Minimum square-footage, minimum market value? The City's TIF policy requires a <br />minimum 25,000 square feet and minimum market value of $1,000,000 upon completion. <br />Staff recommends all proposals should optimize the private development potential of a site. <br /> <br />Should job creation and wage goals be required in instances that do not involve <br />redevelopment or are speculative? Only after a public hearing, if the creation or retention of <br />jobs is determined not to be a goal of a specific project, the wage and job goals may be set at <br />zero. How should "new" jobs be defined when it is likely that a percentage of tenants in a <br />speculative office development may be businesses currently located in Elk River but <br />relocating to the new development? <br /> <br />S:~EDA~TAXABATENEIk 1Liver Policy HistoryN6-24-02.doc <br /> <br /> <br />