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Tax Increment Financing Policy <br /> Purpose <br /> The purpose of this policy is to ensure development receiving Tax Increment Financing(TIF) is consistent <br /> with the long-term city economic development program. This is a guide for processing and review of TIF <br /> applications. The City of Elk River shall utilize TIF to encourage desirable development or redevelopment <br /> that would not otherwise occur but for TIF. <br /> The city is empowered to utilize TIF by the Minnesota Tax Increment Financing Act, as amended. The city <br /> provides the minimum amount of TIF at the shortest term required for a project to proceed. The city <br /> reserves the right to approve or reject projects on a case-by-case basis, taking into consideration established <br /> policies,project criteria, and demand on city services in relation to the potential benefits from the project. <br /> Projects meeting policy criteria are not guaranteed the award of TIF. Approval or denial of a certain project <br /> is not a precedent for approval or denial of another project. <br /> The City Council and Economic Development Authority can deviate from this policy for projects that <br /> supersede the objectives identified herein. <br /> Authority <br /> Minnesota Statutes 469-174 through 469-1794 govern the use of TIF and supersede any issues that conflict <br /> with this policy. <br /> \.- Policy Considerations <br /> The City of Elk River will consider TIF for projects that achieve the following: <br /> 1. Demonstrate long-term benefits to the community. <br /> 2. Retain local jobs and/or increase the number and diversity of jobs that offer stable employment <br /> and/or attractive wages and benefits through: <br /> • Diversification of the local economy <br /> • Significant addition of permanent, high-wage, full-time jobs <br /> • Addition of jobs attractive to those unemployed or underemployed <br /> 3. Significantly increases the city's commercial and industrial tax base. <br /> 4. Demonstrates the ability to encourage unsubsidized private development through "spin off' <br /> development. <br /> 5. Facilitates the development process and achieves development on sites that would not develop "but <br /> for" the use of TIF. (statutory reference) <br /> 6. Removes blight and/or encourages redevelopment of commercial and industrial areas resulting in <br /> high quality redevelopment and private reinvestment. <br /> �,... 7. Offsets redevelopment costs (i.e. contaminated site clean up) over and above the costs normally <br /> incurred in development. <br /> Page 1 of 8 <br />