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<br />City of Elk River Tax Increment Financing Policy & Application <br />Amended February 2014 <br />Page 4 of 15 <br />design, energy conservation, and decreasing capital and/or operating costs of <br />local government. <br /> <br /> To enhance and diversify the City of Elk River’s economic base. <br /> <br /> To significantly increase the City of Elk River’s tax base. <br /> <br /> <br />III. POLICIES FOR THE USE OF 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 /> <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 /> <br />Other types of TIF districts, along with specific criteria, may be considered <br />on a case-by-case basis. <br /> <br />c. 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 />Requests for up front financing will be considered on a case-by-case basis. <br /> <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 /> <br />e. Any developer receiving TIF assistance shall provide a minimum of ten <br />percent (10%) owner cash equity investment in the project. <br /> <br />f. TIF will not be used in circumstances where land and/or property price is in <br />excess of fair market value. <br /> <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 /> <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 />