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• To facilitate the development process and to achieve development on sites <br /> which would not be developed without Tax Abatement assistance. <br /> • To remove blight and/or encourage redevelopment of commercial and <br /> industrial areas in the city that result in high quality redevelopment and private <br /> reinvestment. <br /> • To offset increased costs of redevelopment(i.e.contaminated site clean up) <br /> over and above the costs normally incurred in development. <br /> • To create opportunities for affordable housing. <br /> • To contribute to the implementation of other public policies,as adopted by the <br /> city from time to time,such as the promotion of quality urban or architectural <br /> design,energy conservation,and decreasing capital and/or operating costs of <br /> local government. <br /> • To significantly increase the City of Elk River's tax base. <br /> IV. POLICIES FOR THE USE OF TAX ABATEMENT <br /> a. Tax Abatement assistance will be provided to the developer upon receipt of <br /> taxes by the City,otherwise referred to as the pay-asyougo method. Requests <br /> for up front financing will be considered on a case-by-case basis. <br /> b. Any developer receiving Tax Abatement assistance shall provide a minimum <br /> of ten percent(10%)owner cash equity investment in the project. <br /> c. Tax Abatement will not be used in circumstances where land and/or <br /> property price is in excess of fair market value. <br /> d. Developer shall be able to demonstrate a market demand for a proposed <br /> project. <br /> e. Tax Abatement will not be utilized in cases where it would create an unfair <br /> and significant competitive financial advantage over other projects in the <br /> area. <br /> f. Tax Abatement shall not be used for projects that would place extraordinary <br /> demands on city services or for projects that would generate significant <br /> environmental impacts. <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 /> 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 /> Page 4of16 fro w E R f 0 8 Y <br /> ATU <br />