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III.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 pay-as-you-go 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 /> <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 /> <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 /> <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 />l.All TIF proposals shall optimize the private development potential of a site. <br /> <br /> <br />City of Elk River Tax Increment Financing Policy & Application- Housing <br />Amended April 8 2015 <br />Page 4 of 14 <br />