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<br /> <br /> <br /> <br />Tax Increment Financing Policy <br /> <br /> <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 /> <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 /> <br />The City Council and Economic Development Authority can deviate from this policy for projects that <br />supersede the objectives identified herein. <br /> <br /> <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 /> <br /> <br />Policy Considerations <br />The City of Elk River will consider TIF for projects that achieve the following: <br /> <br />1. Demonstrate long-term benefits to the community. <br /> <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 /> <br />3. Significantly increases the city’s commercial and industrial tax base. <br /> <br />4. Demonstrates the ability to encourage unsubsidized private development through “spin off” <br />development. <br /> <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 /> <br />6. Removes blight and/or encourages redevelopment of commercial and industrial areas resulting in <br />high quality redevelopment and private reinvestment. <br /> <br />7. Offsets redevelopment costs (i.e. contaminated site clean up) over and above the costs normally <br />incurred in development. <br /> <br /> <br />Page 1 of 8 <br />