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Springsted Incorporated <br /> 380 Jackson Street, Suite 300 <br /> Saint Paul,MN 55101-2887 <br /> Springsted Tel: 651-223-3000 <br /> Fax: 651-223-3002 <br /> www.springsted.com <br /> MEMORANDUM <br /> TO: Members of the EDA <br /> Brian Beeman, Economic Development Director <br /> FROM: Mikaela Huot,Vice President/Consultant <br /> DATE: February 11, 2014 <br /> SUBJECT: Tax Increment Financing, Tax Abatement and Business Subsidy Policy Updates <br /> The Elk River City Council and Housing and Redevelopment Authority(HRA)held joint meetings on Monday, <br /> November 4, 2013 and December 2, 2013 to discuss the City's existing tax increment financing(TIF) policy that was <br /> initially created in 1991 and later amended in 2000 and 2006. The policy contains the purpose,objectives of tax <br /> increment financing, policies for use of tax increment financing, project qualifications,application for TIF, and <br /> application review worksheet. The policy lists many City objectives regarding the use of tax increment financing, <br /> including creation of affordable housing; however the application review worksheet does not align with the scoring <br /> and review of potential housing projects. As a result of the joint meetings,staff and Springsted were asked to update <br /> the current policy to include the review of affordable housing projects. A general review and update of the existing <br /> TIF policy in conjunction with development of the housing review worksheet has also occurred and was reviewed and <br /> approved by the HRA at its February 3,2014 meeting. <br /> It was also advised that updates be made to the existing business subsidy and tax abatement policies to ensure <br /> compliance with current statutory requirements and consistency. The purpose of this memo is to provide a brief <br /> summary of the recommended changes and potential areas of discussion for the updates. . <br /> Tax Increment Financing (TIF)Policy Updates <br /> 1. Inclusion of housing projects under Section III (b)(3) <br /> 2. Edit under Section III (j) <br /> 3. Addition of Section V Subsidy Agreement&Reporting Requirements <br /> 4. Edits to Section VI.Application Process for TIF(1)to be consistent with City's fee schedule <br /> 5. Edits to Section VI.Application Process for TIF(2) inclusion of housing projects <br /> 6. Edits to Section VII. Section E to be consistent with City's fee schedule <br /> 7. Minor edits to Section IX <br /> 8. Addition of Section X—Housing Review Worksheet <br />