6.3. SR 06-21-2004 - Laserfiche WebLink

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I. POLICY PURPOSE ?or ~ ?urposes of 3is docu, n~ 3e term "City" shall ~ 3e Elk Ri'ar C~ ~, Econorrx DezdoFn~ Au#Wnry, and HoUStng and Ra:fervJopnem Authori~. The purpose of this policy is to establish the City of Elk ~ver's position rdating to the use o:[ Tax Rebate Financing 0T,.F), otherwise referred to as Tax Abatement, for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a ga.tide in the processing and review of applications requesting tax rebate assistance. The fundamental purpose of tax rebate financing in Elk River is to encourage desirable development or redevelopment that would not other~'ise occur but for the assistance provided through TRF. The City of Elk River is granted the power to utilize TRF by the Minnesota Tax Abatement Act, as amen&& It is the intent of the City to provide the minimum amount of TRF, as well as other incentives, at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city · services in relation to the potential benefits from the project. Meeting policy criteria does not ~arantee the award of TRF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TRF & TIF The primary difference between Tax Rebate Financing (TRF) and Tax Increment Financing (TW) is the way in which the dollars are awarded to the project. When T~ is awarded to a project by the city, the other political sub&visions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when TRF is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Subsequently, the dollars generated for the project with TRF are generally less than the dollars generated with T[F. I!1. OBJECTIVES OF TAX REBATE FINANCING As a matter of adopted policy, the City will consider using TRF to assist private development projects to achieve one or more of the fo[lowing objectives: · To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. · To enhance and diversify the city of Elk River's economic base. · To encourage ad&donal unsubsi&zed private development in the area, either directly or in&rectly through "spin off" development. · To facilitate the development process and to achieve development on sites which would not be developed without TRF assistance. To remove blight and/or encourage redevelopment of commercial and industrial areas in the dty that resuk in high quality redevelopment and private reinvestrnent. City of ELk River Tax Rebate Financing Polio,, .kmended 3ma~at 2002 -3-