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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 pwposes 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 Statutes Section 116J.993 to 116J.995 (Minnesota Business Subsidy <br /> 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 /> "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 /> commercially available to the recipient, any reduction or deferral of any tax or any fee, any <br /> guarantee of any payment under any loan, lease, or other obligation, or any preferential use <br /> of government facilities given to a business. <br /> City of Elk River Business Subsidy Policy <br /> Amended Aril 2015 P 0 W E R E 0 0 r <br /> Page 3of8 INAWR • <br />