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CITY OF ELK RIVER <br /> POLICY AND PROCEDURES RELATING TO <br /> THE USE OF BUSINESS SUBSIDIES <br /> I. PURPOSE <br /> For the purposes of this document, the term "City"shall include the Elk River City Council,Economic Development <br /> Authority, and Housing and Redevelopment Authority. <br /> The purpose of this policy is to establish guidelines and criteria regarding the use of business <br /> subsidies, such as tax increment financing (TIF),tax abatement,and other business subsidies <br /> for private development projects within the City of Elk River. This policy shall be used as <br /> criteria for providing subsidies,in addition to the requirements and limitations set forth by <br /> provisions of Minnesota matte Statutes Section 116J.993 to 116J.995 (Minnesota Business <br /> Subsidy Law), and the City's policy and guidelines of the particular form of subsidy. <br /> These guidelines shall be used in processing and reviewing applications requesting business <br /> subsidy assistance. The fundamental purpose of business subsidies in the City is to <br /> encourage desirable development or redevelopment that would not otherwise occur "but <br /> for" the assistance provided through business subsidies. <br /> It is the intent of the City to provide business subsidies, as well as other incentives that the <br /> City may deem appropriate, at the shortest term required for the project to proceed. The <br /> City reserves the right to approve or reject projects on a case-by-case basis, taking into <br /> account established policies, specific project criteria, and demand on city services in relation <br /> to the potential benefits to be received from a proposed project. Meeting policy guidelines <br /> or other criteria does not guarantee the award of a business subsidy. Furthermore, the <br /> approval or denial of one project is not intended to set precedent for approval or denial of <br /> another project. <br /> Whenever possible it is the City's intent to coordinate the use of business subsidies with <br /> other applicable taxing jurisdictions. <br /> II. DEFINITION OF "BUSINESS SUBSIDY" <br /> lease,4-he following types of assistance having a vaItte in excess of$25,000 are defined as <br /> "busiiiess subsidy"within the AIN Busiiiess Subsidy Law: <br /> • State and local goveffiment ageiacy grants <br /> • The pfincipal amount of a loan that exceeds $75,000 at rates below thos <br /> commercially available,� <br /> • Reductions or deferrals of taxes of-fieeR; <br /> or other obligation; <br /> "Business subsidy" means a local government agency grant, contribution of personal <br /> property real property,infrastructure,the principal amount of a loan at rates below those <br /> City of Elk River Business Subsidy Policy 2 <br /> Amended May 200 February 2014 <br />