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design, energy conservation, and decreasing capital and /or operating costs of <br />local government. <br />• To enhance and diversify the City of Elk River's economic base. <br />• To significantly increase the City of Elk River's tax base. <br />III. POLICIES FOR THE USE OF TIF <br />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. It is the City's policy to establish the following types of TIF districts: <br />1. Economic Development Districts <br />• It is desired that the project result in a minimum creation of <br />one full time job per $25,000 of TIF, or <br />• Result in a significant increase in the tax base. <br />2. Redevelopment Districts <br />• The market value of a redeveloped site shall increase by a <br />minimum of 50% of the current market value. <br />3. Housing Districts <br />• May be considered on a case -by -case basis. <br />Other types of TIF districts, along with specific criteria, may be considered <br />on a case -by -case basis. <br />TIF assistance will 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 />d. 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 />e. Any developer receiving TIF assistance shall provide a minimum of ten <br />percent (10 %) owner cash equity investment in the project. <br />f. TIF will not be used in circumstances where land and /or property price is in <br />excess of fair market value. <br />g. 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 />h. 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 />City of Elk River Tax Increment Financing Policy & Application P 0 W E D E D D Y <br />Amended February 2014 }� /� U®E <br />Page 4 of 15 A V /y {� <br />