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CITY OF ELK RIVER <br />POLICY AND PROCEDURES RELATING TO <br />THE USE OF BUSINESS SUBSIDIES <br /> <br />I. PURPOSE <br />For the pu~oses of this document, the term "CiE '' shall include the Elk River CiE Council, E:onomic Development <br />Author~tjy, and 3lousing and ~devdopment_~uthor~t_Y. <br />The purpose of this policy is to establish guidelines and c~iteria 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 and shall be in addition to the <br />requirements and lirmtat/ons set forth by provisions of Minnesota State Statute 116j.993 <br />(MN Business Subsidy Law), and by the City's policy and guidelines of the particular form of <br />subsidy. <br />These guidelines shall be used in processing and reviewing applications requesting business <br />subsidies 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 potent/al benefits to be received from a proposed project. Meeting policy guidelines <br /> or other criteria does not guarantee the award of business subsidies. 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 /> <br />II. DEFINITION OF "BUSINESS SUBSIDY" <br /> <br />The following types of assistance having a value in excess of $25,000 are defined as a <br />"business subsidy" wirl4n the MN Business Subsidy Law: <br /> State and local government agency grants; <br /> · Contributions of personal property, real property', or infrastructure; <br /> · The principal amount of a loan that exceeds $75,000 at rates <br /> commercially available; <br /> <br /> · Reductions or deferrals of taxes or fees; <br /> <br />below those <br /> <br />· Guarantees of any payment under any loan, lease, or other obligation; and, <br />· Preferential use of government facilities. <br /> <br />City of Elk River Business Subsidies Policy <br /> <br /> <br />