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<br />City of Elk River Tax Abatement Policy & Application <br />Amended February 2014 <br />Page 5 of 15 <br /> <br />g. The developer must provide adequate financial guarantees to ensure <br />completion of the project, including, but not limited to: minimum assessment <br />agreements, letters of credit, personal guaranties, and etcetera. <br /> <br />h. The developer shall adequately demonstrate, to the City’s sole satisfaction, an <br />ability to complete the proposed project based on past development <br />experience, general reputation, and credit history, among other factors, <br />including the size and scope of the proposed project. <br /> <br />i. For the purposes of underwriting the proposal, the developer shall provide <br />any requested market, financial, environmental, construction plans or other <br />data requested by the City or its consultants. <br />j. Tax Abatement proposals shall not be used to support speculative office <br />projects. Speculative projects are defined as those projects which have pre- <br />leasing agreements or letters of intent for less than 50% of the available <br />space. <br /> <br />In addition, leasable office projects must meet the following guidelines: <br />1. Evidence of the 50% occupancy must be reported to the Director of <br />Economic Development six months following an issued Certificate of <br />Occupancy. <br />2. Of the occupants certified at the six month period, 50% of the jobs <br />must be considered “new” jobs to the City of Elk River, meaning jobs <br />not located in the City at any time prior to occupying space in the <br />project. <br />3. Business retention jobs will be considered on a one-for-one match to <br />job creation only in cases where job loss is specific and demonstrable in <br />accordance with the Minnesota Business Subsidy Law. Evidence may <br />include documentation that the company will have to close involuntarily, <br />or the company has received an attractive offer to move to another state <br />or community. <br /> <br />k. All Tax Abatement proposals shall optimize the private development <br />potential of a site. <br /> <br />V. PROJECT QUALIFICATIONS <br /> <br />All Tax Abatement projects considered by the City of Elk River must meet each of the <br />following requirements: <br /> <br />a. The project shall meet at least one of the objectives set forth in Section III of <br />this document. <br /> <br />b. The use of Tax Abatement will be limited to: <br />• Industrial development, expansion, redevelopment, or <br />rehabilitation; or <br />• Commercial redevelopment or rehabilitation; or