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® To facilitate the development process and to achieve development on sites <br />which would not be developed without Tax Abatement assistance. <br />® To remove blight and /or encourage redevelopment of commercial and <br />industrial areas in the city that result in high quality redevelopment and private <br />reinvestment. <br />® To offset increased costs of redevelopment (i.e. contaminated site clean up) <br />over and above the costs normally incurred in development. <br />® To create opportunities for affordable housing. <br />® To contribute to the implementation of other public policies, as adopted by the <br />city from time to time, such as the promotion of quality urban or architectural <br />design, energy conservation, and decreasing capital and /or operating costs of <br />local government. <br />® To significantly increase the City of Elk River's tax base. <br />a. Tax Abatement assistance will be provided to the developer upon receipt of <br />taxes by the City, otherwise referred to as the pay- aryougo method. Requests <br />for up front financing will be considered on a case -by -case basis. <br />b. Any developer receiving Tax Abatement assistance shall provide a minimum <br />of ten percent (10 %) owner cash equity investment in the project. <br />c. Tax Abatement will not be used in circumstances where land and /or <br />property price is in excess of fair market value. <br />d. Developer shall be able to demonstrate a market demand for a proposed <br />project. <br />e. Tax Abatement will not be utilized in cases where it would create an unfair <br />and significant competitive financial advantage over other projects in the <br />area. <br />f. Tax Abatement shall not be used for projects that would place extraordinary <br />demands on city services or for projects that would generate significant <br />environmental impacts. <br />g. The developer must provide adequate financial guarantees to ensure <br />completion of the project, including, but not limited to: minimum assessment <br />agreements, letters of credit, personal guaranties, and etcetera. <br />h. The developer shall adequately demonstrate, to the City's sole satisfaction, an <br />ability to complete the proposed project based on past development <br />City of Elk River <br />Tax Abatement Policy <br />Amended May 2006 <br />-4- <br />