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I/ III <br /> CITY SOURCES/CITY PARTICIPATION <br /> RE: ELK RIVER BUSINESS PARK FINANCING CONCEPTS <br /> *Tax Increment Financing (TIF) <br /> - Access funds from existing TIF Districts to purchase land <br /> and/or improve property <br /> - Recapture funds through: <br /> a) cash sales; or b) creating new TIF Districts <br /> - Reuse TIF funds for other phases <br /> *EDA Levy <br /> - Use a portion of the EDA's annual levy to acquire land <br /> and/or make improvements <br /> - Excess levy (reverse referendum) <br /> *HRA <br /> - Historically, the HRA is an urban renewal agency <br /> - Possible partner (i.e. co-developer with EDA) <br /> *Minnesota Statutes, Chapter 429 <br /> - Enables cities to bond for infrastructure improvements, <br /> subject to the 20% threshold. That is, 20% of the bond <br /> issue must be used for street, water, sewer, etc. , costs . <br /> Staff is exploring the merits of utilizing the balance of <br /> • a bond issue for, say, land purchases . <br /> *Grants <br /> - U.S. Economic Development Administration <br /> * Funds available for infrastructure costs <br /> * Does not fund 100% of costs <br /> * Finite grant pool <br /> - Utility Companies <br /> * Possible co-developer, or; <br /> * Cash grant to underwrite a portion of the costs <br /> *Internal Financing <br /> - Access funds from various City accounts <br /> - Funds are finite <br /> - Funds need to be repaid <br /> *Borrowed Funds <br /> - Via Contract for Deed <br /> - Via 5 year mortgage against the land <br /> • <br />