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c. Any developer receiving TIF assistance shall provide a minimum of ten <br />percent (10 %) owner cash equity investment in the project. <br />d. TIF will not be used to purchase property where land and /or property price <br />is in excess of fair market value. <br />e. 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 />f. 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 />g. 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 />h. 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 />i. 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 />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 />k. All TIF proposals shall optimize the private development potential of a site. <br />VI. PROJECT QUALIFICATIONS <br />All TIF projects considered by the city of Elk River must meet all of the following <br />requirements: <br />To be eligible for TIF, a project shall result in: <br />i. The new construction of a minimum of 25,000 square feet; <br />ii. A minimum increase of $37,500 per year in property taxes, excluding <br />the state portion; and <br />iii. Have a market value of at least $1,250,000 upon completion. <br />b. The project shall meet at least one or more-of the objectives set forth in <br />Section II and satisfy all the provisions set forth in Section III of this <br />document. <br />c. The developer shall demonstrate that the project is not financially feasible <br />but for the use of TIF. <br />d. The project shall comply with all provisions set forth in the Tax Increment <br />Financing Act, Minnesota Statutes 469.124 to 469.134, inclusive, as amended, <br />City of Elk River Tax Increment Financing Policy & Application P 0 N E B E 0 B T <br />Amended March 2017 <br />Page 6 of 22 I <br />