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III. POLICIES FOR THE USE OF HOUSING 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. 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 />c. A maximum often 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 often <br />percent (10 %) owner cash equity investment in the project. <br />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 />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 P 0 N E A E 0 B T <br />Amended April 8 2015 <br />Page 4 of 14 11`41ATUREJ <br />