6.3 EDSR 02-18-2014 - Laserfiche WebLink

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CITY OF ELK RIVER POLICY AND PROCEDURES RELATING TO THE USE OF BUSINESS SUBSIDIES 1. PURPOSE For the purposes of this document, the term "City"shall include the Elk River City Council,Economic Development Authority, and Housing and Redevelopment Authority. The purpose of this policy is to establish guidelines and criteria regarding the use of business subsidies, such as tax increment financing (TIF),tax abatement, and other business subsidies for private development projects within the City of Elk River. This policy shall be used as criteria for providing subsidies,in addition to the requirements and limitations set forth by provisions of Minnesota matte Statutes Section 1161993 to 1161995 (Minnesota Business Subsidy Law),and the City's policy and guidelines of the particular form of subsidy. These guidelines shall be used in processing and reviewing applications requesting business subsidy assistance. The fundamental purpose of business subsidies in the City is to encourage desirable development or redevelopment that would not otherwise occur"but for" the assistance provided through business subsidies. It is the intent of the City to provide business subsidies, as well as other incentives that the City may deem appropriate, 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 account established policies, specific project criteria, and demand on city services in relation to the potential benefits to be received from a proposed project. Meeting policy guidelines or other criteria does not guarantee the award of a business subsidy. Furthermore, the approval or denial of one project is not intended to set precedent for approval or denial of another project. Whenever possible it is the City's intent to coordinate the use of business subsidies with other applicable taxing jurisdictions. II. DEFINITION OF "BUSINESS SUBSIDY" The following types of assistance having a value in excess of.$25,000 arc defined as a "business subsidy"within the MN Bu3incss Subsidy Law: • State and local government agency grants; • Contributions of personal property,real property, or infrastructure; - - - - 11. -- - commercially available; • Rcduction3 or dcfcrral3 of taxes or fees; "Business subsidy" means a local government agency grant, contribution of personal property,real property,infrastructure,the principal amount of a loan at rates below those City of Elk River Business Subsidy Policy 2 Amended May 2006 February 2014