5.1. SR 07-08-2002 - Laserfiche WebLink

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Item 6. EDA Item 5.1. CC MEMORANDUM TO: FROM: DATE: Economic Development Authority Mayor & City Council Catherine Mehelich, Director of Economic Development/~/~/ July 8, 2002 SUBJECT: Consider Adoption of the City's Tax Rebate Financing Policy as Amended Attachments · Amended Tax Rebate Financing Policy, July 2002 · Existing Tax Rebate Financing Policy, Adopted April 2000 Background At its June 24, 2002 meeting the City Council and EDA discussed Tax Rebate Financing policy issues related to office development. State law provides individual taxing jurisdictions the flexibility to define their own priorities for the use of tax abatement. The policy is to be used as a guide in the processing and review of applications requesting TRF assistance. The attached amended policy incorporates the following items: Speculative office development is not eligible for TRF assistance. Speculative projects are defined as those projects which have pre-leasing agreements for less than 50% of the available space. In addition, 50% of the jobs within the leasible office space must be "new" jobs to the City of Elk River, meaning jobs provided by employers not located in the city at any time prior to occupying space in the project. (Section IV.j.). Per the Business Subsidy Law, subsidy agreement goals would be reported and evaluated annually for two years after the date the benefit is received or until all goals have been met. If the recipient fails to meet the goals they would be required to pay back the assistance plus interest. Office facilities remain eligible for TRF but with the minimum requirements of 25,000 square feet new construction and result in a minimum market value of $1,000,000 upon project completion. (SectionV.b.)