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PROPOSED <br /> 11/25/02 <br /> • III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES <br /> In accordance with the MN Business Subsidy Law, the City will consider using business <br /> subsidies to assist private development projects to achieve one or more of the following <br /> public purpose objectives: <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 /> • To enhance and diversify the City of Elk River's tax base. <br /> • To encourage additional unsubsidized private development in the area, either <br /> directly or indirectly through "spin off" development. <br /> • To achieve development on sites which would not be developed without <br /> business subsidies assistance. <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 /> • To offset increased costs of development of specific properties when the unique <br /> physical characteristics of the site may otherwise preclude private investment. <br /> • To create opportunities for the construction, operation and maintenance of <br /> affordable housing. <br /> IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES <br /> A. Business subsidy assistance will be provided from the City, by 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 /> 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 /> C. Business subsidy will not be provided in circumstances where land and /or property <br /> price is demonstrated by the County Assessor to be in excess of fair market value. <br /> This would normally be where the acquisition price is more than 10%in excess of <br /> market value. <br /> D. A developer must be able to demonstrate to the City, or,if applicable, to the <br /> underwriting authority, a market-demand for a proposed project. <br /> E. Business subsidy will not be used in cases where the subsidy would create an unfair <br /> and significant competitive financial advantage over other similar projects in the area. <br /> • F. Business subsidy will not be used for projects that would place extraordinary <br /> demands on city infrastructure and services. <br /> City of Elk River Business Subsidies Policy 2 <br />