8.1. EDSR 10-16-2017 - Laserfiche WebLink

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City of Elk River Tax Increment Financing Policy & Application- Housing Amended April 8 2015 Page 4 of 14 III. POLICIES FOR THE USE OF HOUSING TIF a. When possible, TIF shall be used to finance public improvements associated with the project. The priority for the use of TIF funds is: 1. Public improvements, legal, administrative, and engineering costs. 2. Site preparation, site improvement, land purchase, and demolition. 3. Capitalized interest, bonding costs. b. TIF assistance will be provided to the developer upon receipt of the increment by the City, otherwise referred to as the pay-as-you-go method. c. A maximum of ten percent (10%) of any tax increment received from the district may be retained by the City to reimburse administrative costs. d. Any developer receiving TIF assistance shall provide a minimum of ten percent (10%) owner cash equity investment in the project. e. TIF will not be used in circumstances where land and/or property price is in excess of fair market value. f. Developer shall be able to demonstrate a market demand for a proposed project. TIF shall not be used to support purely speculative projects. g. TIF will not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. h. TIF shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. i. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: minimum assessment agreements, letters of credit, personal guaranties, etc. j. The developer shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. k. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. l. All TIF proposals shall optimize the private development potential of a site.