5.2. SR 03-08-2004 - Laserfiche WebLink

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I. POLICY PURPOSE For ~he }ou~?ose.r qf ~hi.~' clo~,nen~. ;he ~erm "Ci0, ".&ail ira&de ;he JZ3~ P~'ver CTO, Coumii. ~conomic Dwe[opmen;~ .4~thori(7, a,d Hm~si,~ and Reckve/opmenl. 4a3ori(y. The purpose of this policy is to establish the City of Elk River's position retatmg to the use of Tax Rebate Financing (TRF), otherwise referred to as Tax Abatement, for private development above and beyond the requirements and lhnitations set forth by State Law. Th/s policy., shall be used as a guide in the processing and review of applications requesting tax rebate assistance. The fundamental purpose of tax rebate financing in Elk River is to encourage desirable development or redevelopment that ~vould not otherwise occur/';/,z/.fi;r the assistance provided d~rough TRF. The Ciw of Elk River is granted the power to utilize TRF by the Minnesota Tax Abatement Act, as amended. [t is the intent of the City to provide the rninmmrn amount of TRF, as well as other incentives, at the shortest ten-n required for the project to proceed. The CiD' reserves the right to approve or reject projects on a case by case basis, taksng into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of TRF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TRF & TIF The prinaau~ difference bet~veen Tax Rebate Financing (TRF) and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project bv the citT, the other political subdivisions (the school dismct and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when TRF is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Subsequently, the dollars generated for the project with TRF are generally less than the dollars generated with TIF. III. OBJECTIVES OF TAX REBATE FINANCING As a matter of adopted policy, the City will consider using TRF to assist private development projects to acMeve one or more of the following objectives: · To retain local jobs and/or increase the number and diversiU, of jobs that offer stable employrnent and/or attractive wages and benefits. · To enhance and diversify the ~cit-y of Elk River's economic base. · To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off" development. · To facilitate the development process and to achieve development on sites which would not be developed without TRF assistance. To remove blight and/or encourage redevelopment of commercial and mdusr_dal areas in the city dmt result in high qualit?' redevelopment and private reinvestment. CitT of Elk River Tax l~_cbatc Financing Policy, \mcnde'd .~ ugusr 2{)()2 -3-