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M. POLICIES FOR THE USE OF HOUSING TIF <br /> a. When possible,TIF shall be used to finance public improvements associated <br /> with the project. The priority for the use of TIF funds is: <br /> 1. public improvements,legal, administrative,and engineering costs. <br /> 2. Site preparation, site improvement,land purchase,and demolition. <br /> 3. Capitalized interest, bonding costs. <br /> b. TIF assistance will be provided to the developer upon receipt of the. <br /> increment by the City, otherwise referred to as the pray-as:yaugo method. <br /> c. A maximum of ten percent(10%) of any tax increment received from the <br /> district may be retained by the City to reimburse administrative costs. <br /> d. Any developer receiving TIF assistance shall provide a minimum of ten <br /> percent (10%) owner cash equity investment in the project. <br /> e. TIF will not be used in circumstances where land and/or property price is in <br /> excess of fair market value. <br /> f. Developer shall be able to demonstrate a market demand for a proposed <br /> project. TIF shall not be used to support purely speculative projects. <br /> g. TIF will not be utilized in cases where it would create an unfair and <br /> significant competitive financial advantage over other projects in the area. <br /> h. TIF shall not be used for projects that would place extraordinary demands <br /> on city services or for projects that would generate significant environmental <br /> impacts. <br /> i. 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, etc, <br /> j. 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 /> k. For the purposes of underwriting the proposal, the developer shall provide <br /> any requested market, financial,environmental, or other data requested by <br /> the City or its consultants. <br /> 1, All TIF proposals shall optimize the private development potential of a site. <br /> City of Elk River Tax Increment Financing Policy&Application-Housing t # r <br /> Amended April 8 2015 <br /> Page 4 of 14 INIM URE <br />