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. <br />local government <br /> <br /> <br /> <br /> <br />To enhance and diversify the City of Elk River’s economic basehousing stock. <br /> <br /> <br /> <br /> <br />To significantly increase the City of Elk River’s tax base. <br /> <br /> <br />III.POLICIES FOR THE USE OF HOUSING TIF <br /> <br /> <br />a.When possible, TIF shall be used to finance public improvements associated <br />with the project. The priority for the use of TIF funds is: <br /> <br />1.Public improvements, legal, administrative, and engineering costs. <br /> <br />2.Site preparation, site improvement, land purchase, and demolition. <br /> <br />3.Capitalized interest, bonding costs. <br /> <br /> <br />b.It is the City’s policy to establish the following types of TIF districts: <br /> <br />1.Economic Development Districts <br /> <br /> <br />It is desired that the project result in a minimum creation of <br />one full time job per $25,000 of TIF, or <br /> <br /> <br />Result in a significant increase in the tax base. <br /> <br />2.Redevelopment Districts <br /> <br /> <br />The market value of a redeveloped site shall increase by a <br />minimum of 50% of the current market value. <br /> <br />3.Housing Districts <br /> <br /> <br />May be considered on a case-by-case basis. <br /> <br />Other types of TIF districts, along with specific criteria, may be considered <br />on a case-by-case basis. <br /> <br /> <br />c.b.TIF assistance will be provided to the developer upon receipt of the <br />increment by the City, otherwise referred to as the pay-as-you-go method. <br />Requests for up front financing will be considered on a case-by-case basis. <br /> <br /> <br />d.c.A maximum of ten percent (10%) of any tax increment received from the <br />district may be retained by the City to reimburse administrative costs. <br /> <br /> <br />e.d.Any developer receiving TIF assistance shall provide a minimum of ten <br />percent (10%) owner cash equity investment in the project. <br /> <br /> <br />f.e.TIF will not be used in circumstances where land and/or property price is in <br />excess of fair market value. <br /> <br /> <br />g.f.Developer shall be able to demonstrate a market demand for a proposed <br />project. TIF shall not be used to support purely speculative projects. <br /> <br /> <br />h.g.TIF will not be utilized in cases where it would create an unfair and <br />significant competitive financial advantage over other projects in the area. <br /> <br /> <br />i.h.TIF shall not be used for projects that would place extraordinary demands <br />on city services or for projects that would generate significant environmental <br />City of Elk River Tax Increment Financing Policy & Application- Housing <br />Amended April 8 2015 <br />Page 4 of 14 <br /> <br />