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■ space necessary for and related to the activities listed <br /> in clauses (1) to (5) of the statutes. <br /> • Maximum term 8 years after receipt of the first increment. <br /> Housing District[Minn. State Statutes 469.174, Subs. 11, <br /> 469.176, Subd 44, 469.17611 <br /> ■ A project for low&moderate income housing <br /> occupancy.A project does not qualify if more than <br /> 20% of the square footage of improvements are for <br /> commercial,retail or other non-housing uses. <br /> ■ Tax increment revenue must solely finance <br /> housing project costs,which may include <br /> public infrastructure. <br /> ■ For owner-occupied housing,95% of the units must <br /> be initially purchased and occupied by individuals <br /> qualifying as low and moderate income under current <br /> Federal schedules. For rental housing, 50% of the <br /> units must be occupied by persons whose income is <br /> 80% or less of area median gross income. <br /> ■ Maximum term 25 years after receipt of the first <br /> increment. <br /> Soils Condition District[Minn. State Statutes 469174, <br /> Subd. 19, 469176 Subd 4b] <br /> ■ A project where presence of hazardous substances, pollution, <br /> or contaminants requires removal or remedial action for use; <br /> and, the estimated cost of remediation exceeds the land's fair <br /> market value,or, exceeds $2 per square foot. <br /> ■ Tax increment may be used only to: <br /> o Acquire parcels on which the improvements will <br /> occur; <br /> o Pay for the cost of removal or remedial action;and <br /> o Pay for the administrative expenses of the TIF <br /> Authority allocable to the district. <br /> ■ Maximum term is 20 years after receipt of the first <br /> increment. <br /> V. PROJECT REQUIRMENTS <br /> In addition to complying with all statutory guidelines,projects requesting TIF should <br /> meet the following requirements. However,it should not be presumed that a project <br /> meeting this set of criteria will automatically be approved. <br /> a. TIF assistance may be provided to the developer upon receipt of the <br /> increment by the city, otherwise referred to as the pay-asyougo method. <br /> Requests for up front financing will be considered on a case-by-case basis. <br /> b. A maximum of ten percent (10%) of any tax increment received from the <br /> district will be retained by the city to reimburse administrative costs. <br /> c. Any developer receiving TIF assistance shall provide a minimum of ten <br /> City of Elk River Tax Increment Financing Policy&Application P 0 N E B E 0 B T <br /> Amended March 2017 INAT- UREI <br /> Page 5 of 15 <br />