6.3 EDSR 04-17-2017 - Laserfiche WebLink

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I. POLICY PURPOSE For the purposes of this document, the term city shall include the Elk River City Council, Economic Development Authority, and Housing and Redevelopment Authority. The purpose of this policy is to establish the city of Elk Rivers position relating to the use of Tax Abatementfor private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as and review of applications requesting Tax Abatement assistance. The fundamental purpose of providing Tax Abatementin Elk River is to encourage desirable development or redevelopment that would not otherwise occur but-for the assistance provided through the Tax Abatement. The city of Elk River is granted the power to utilize Tax Abatementby Minnesota Statutes, Sections 469.1812 to 469.1815 (the Minnesota Tax Abatement Act), as amended. It is the intent of the city to provide the minimum amount of Tax Abatement, as well as other incentives, at the shortest term required for t Preference is given to projects in which the total amount of Tax Abatement includes participation from the county. The city reserves the right to approve or reject projects on a case by case basis, taking into consideration esta criteria, and demand on city services in relation to the potential b project. Meeting policy criteria does not guarantee the award ofTax Abatement to the project. Approval or denial of one project is not intended to se or denial of another project. II.DIFFERENCE BETWEEN TAX ABATEMENT AND TAX INCREMENT FINANCING The primary difference between Tax Abatement and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When T a project by the city, the other taxing jurisdictions(the school district and the county) are required to contribute their portion of the increased taxes to t when Tax Abatement is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Subsequently, the project with Tax Abatement are generally less than the dollars generated with TIF. III.OBJECTIVES OF TAX ABATEMENT As a matter of adopted policy, the city will consider using Tax Abatement to assist private development projects to achieve one or more of the follo To retain local jobs and/or increase the number and diversity of stable employment and/or attractive wages and benefits as defined in the citys Business Subsidy Policy. To enhance and diversify the city of Elk Rivers economic base. To encourage additional unsubsidized private development in the . directly or indirectly through spin off development Page 3 of 15