Laserfiche WebLink
<br /> <br />Page 3 of 8 <br />5. TIF District’s shall be limited to the minimum term necessary to meet the project needs. Only <br />projects exceeding the objectives identified in this policy will be considered to exceed the following <br />general thresholds: <br /> Redevelopment District 15 Years (Max is 26) <br /> Housing District 15 Years (Max is 26) <br /> Soils Condition District 15 Years (Max is 21) <br /> Renewal and Renovation District 10 Years (Max is 16) <br /> Economic Development District 8 Years (Max is 9) <br /> <br />6. Policy Considerations <br /> Each project is required to meet the “but-for” test to determine the need for and level of <br />assistance. This test and the amount of tax increment generated determines the district’s term. <br />It is difficult to facilitate a redevelopment, housing or soils condition district for less than the <br />maximum term as the extraordinary costs involved are usually significant. <br /> The term of the district could coincide with the amount of tax increment the city has to spend <br />on its priorities within a project area. <br /> Of all the TIF districts, the Economic Development District is most often the one limited to a <br />lesser term. Economic Development Districts are really “incentive” districts where it is not so <br />much the extraordinary costs as it is an “incentive” to get a business to locate in a community. <br />In the other districts, the costs are easily identifiable and usually significant such as demolition, <br />relocation, environmental remediation, and the cost differential between market rate and <br />income/rent restricted housing. <br /> <br />7. Developers receiving TIF assistance shall provide a minimum of twenty percent (10%) cash equity <br />investment in the project. TIF will not be used to supplant cash equity. <br /> <br />8. TIF will not be used in circumstances where land and/or property price is in excess of fair market <br />value. A third-party appraiser agreed upon by the city and developer will determine the fair market <br />value of the land. <br /> <br />9. The developer shall demonstrate a market demand for a proposed project. TIF shall not be used to <br />support purely speculative projects. <br /> <br />10. The developer shall adequately demonstrate, to the city’s sole satisfaction, an ability to complete the <br />proposed project based on past development experience, general reputation, and credit history, <br />among other factors, including the size and scope of the proposed project. <br /> <br />11. For the purposes of underwriting the proposal, the developer shall provide any requested market, <br />financial, environmental, or other data requested by the city or its consultants. <br /> <br />12. The city of Elk River shall only use TIF to encourage economic growth and development within the <br />city limits. <br /> <br /> <br />Application Process <br /> <br />1. Applicant submits a complete application and a $10,000 application deposit by the first Monday of <br />the month. The application deposit will be used toward the cost of services provided in the <br />evaluation of financial feasibility, establishment or modification of the district, and preparation of <br />legal documents and agreements. An additional deposit of $10,000 shall be required for projects <br />requiring statutory redevelopment substandard tests. The applicant shall reimburse the city for <br />professional services in excess of the initial deposit. Deposit portions not utilized shall be refunded. <br />