5.4. SR 04-12-2004 - Laserfiche WebLink

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I. POLICY PURPOSE ~or ;he ?u~oses of this document, ~he ~erm "CiV'' shall include ~h~ ~//e ~'ver Cit_y CoumiJ, ~co~omic The purpose of this policy is to establish the City of Elk River's position relating to the use of Tax Rebate Financing (TRF), otherwise referred to as Tax Abatement, for private development above and beyond the requirements and limitations set forth by State La~v. This 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 would not other~vise occur bzztfor the assistance provided through TRF. The City of Elk River is granted the power to utilize TRF by the Minnesota Tax Abatement Act, as amended. It is the intent of the CiD' to provide the minimum amount of TRF, as well as other incentives, at the shortest term required for the project to proceed. The Ci~ reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on ci~ services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the a~vard 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 primary difference between Tax Rebate Financing (TRF) and 'Fax Increment Financing (TIF) is the way in which the dollars are axvarded to the project. When TIF is a~varded to a project by the city, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, ~vhen 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 ~vith 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 achieve one or more of the follo~ving objectives: · To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive xvages and benefits. · To enhance and diversify the city 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 ~vithout TRF assistance. To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality, redevelopment and private reinvestment. City of Elk River Tax Rebate Financing Policy, Amended August 2002