5.1. SR 06-24-2002 - Laserfiche WebLink

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I. POLICY PURPOSE ~or ;he ~urposes of:h6' documen4 the ;erin "Ci~y"~'h~// im'/ude :& ~/>~ River City Counci~ ~conomic The purpose of dus policy is to establish the City of Elk River's position relating to the use of Tax Rebate Financing (TRF), other~vise referred to as Tax Abatement, for private development above and beyond the requirements and 1Lmitadons set forth by State Law. This policy shall be used as a guide in the processing and revie~v of applications requesting tax rebate assistance. The fundamental purpose of tax rebate financing in Elk River is to encourage desirable development or redevelopment that would not othe~vise occur but/ar the assistance provided through TRF. The City of Elk River is granted the po~ver to utilize TRF by the Minnesota Tax Abatement Act, as amended. It is the intent of the City to provide the minSmum amount of TRF, as well as other incentives, at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the a~vard of TRF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TRF & TIF The prima~T difference between Tax Rebate Financing (TRF) and Tax Increment Financing (TIF) is the ~vay in which the dollars are a~varded to the project. When TIF is awarded to a project by the city, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when TRF is requested, each political subdivision has the opdon of granting its portion of the increased taxes to the project. Subsequendy, the dollars generated for the project ~vith TRF are generally less than the dollars generated ~vith TIF. !11. OBJECTIVES OF TAX REBATE FINANCING As a matter of adopted policy, the City ~vill consider using TRF to assist private development projects to achieve one or more of the follo~ving objectives: ~rr//,~ ,ma,tt,~ · T Y' o retain local jobs and/or increase the number and diversity of.4~l~ that offer stable employment and/or attractive ~vages and benefits. · To enhance and diversify the city of Elk River's economic base. · To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off" development. · To facilitate the development process and to achieve development on sites which would not be developed ~vithout TRF assistance. · To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinves tment.