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Notwithstanding the definitions listed above under 1 and 21, "business subsidies" as defined <br />also includes the following forms of financial assistance and is subject to this policy, with the <br />exception of a public hearing as the amount of assistance is less than $150,000, with limited <br />reporting forms required: <br /> <br /> <br />1.a business subsidy of $25,000 or more; and <br /> <br />2.business loans and guarantees of $75,000 or more. <br /> <br />The definition of a “business subsidy” is in compliance with the current Minnesota Business <br />Subsidy Law and is subject to any law changes that may occur. <br /> <br /> <br />III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES <br /> <br />In accordance with the Minnesota Business Subsidy Law, the City will consider using <br />business subsidies to assist private development projects to achieve one or more of the <br />following public purpose objectives: <br /> <br /> <br />To retain local jobs and/or increase the number and diversity of jobs that offer <br />stable employment and/or attractive wages and benefits. <br /> <br /> <br />To enhance and diversify the City of Elk River’s tax base. <br /> <br /> <br />To encourage additional unsubsidized private development in the area, either <br />directly or indirectly through “spin off” development. <br /> <br /> <br />To achieve development on sites which would not be developed without <br />business subsidies assistance. <br /> <br /> <br />To remove blight and/or encourage development of commercial and industrial <br />areas in the city that result in higher quality development or redevelopment and <br />private investment. <br /> <br /> <br />To offset increased costs of development of specific properties when the unique <br />physical characteristics of the site may otherwise preclude private investment. <br /> <br /> <br />To create opportunities for the construction, operation and maintenance of <br />affordable housing. <br /> <br /> <br />IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES <br /> <br /> <br />A.Business subsidy assistance will be provided from the City, on a “pay-as-you-go” <br />note method, to the developer if the business subsidy is tax increment financing or <br />tax abatement. Requests for up front financing will be considered on a case-by-case <br />basis. <br /> <br />B. A developer requesting business subsidy assistance must demonstrate, to the <br />satisfaction of the City, sufficient cash equity investment in the project as required <br />within the City’s policy for the particular form of subsidy. <br /> <br />C. Business subsidy assistance will not be provided in circumstances where land and/or <br />property price is demonstrated by the County Assessor to be in excess of fair market <br />City of Elk River Business Subsidy Policy <br />Amended February 2014April 2015 <br />Page 5 of 8 <br /> <br />