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Developers receiving TIF assistance shall provide a minimum of twenty percent <br />(10%) cash equity investment in the project. TIF will not be used to supplant cash <br />equity. <br />8. TIF will not be used in circumstances where land and/or property price is in excess <br />of fair market value. A third -party appraiser agreed upon by the city and developer <br />will determine the fair market value of the land. <br />9. The developer shall demonstrate a market demand for a proposed project. TIF shall <br />not be used to support purely speculative projects. <br />10. The developer shall adequately demonstrate, to the city's sole satisfaction, an ability <br />to complete the proposed project based on past development experience, general <br />reputation, and credit history, among other factors, including the size and scope of <br />the proposed project. <br />11. For the purposes of underwriting the proposal, the developer shall provide any <br />requested market, financial, environmental, or other data requested by the city or its <br />consultants. <br />12. The city of Elk River shall only use TIF to encourage economic growth and <br />development within the city limits. <br />Application Process <br />Applicant submits a complete application and a $10,000 application deposit by the <br />first Monday of the month. The application deposit will be used toward the cost of <br />services provided in the evaluation of financial feasibility, establishment or <br />modification of the district, and preparation of legal documents and agreements. An <br />additional deposit of $10,000 shall be required for projects requiring statutory <br />redevelopment substandard tests. The applicant shall reimburse the city for <br />professional services in excess of the initial deposit. Deposit portions not utilized <br />shall be refunded. <br />2. City staff reviews the application for completeness and submits the application to the <br />city's financial consultant for review and preparation of a financial analysis. <br />3. The Joint Finance Committee shall review the proposal's financial strength and make <br />a recommendation to the appropriate commission with findings of fact. <br />4. The appropriate authority reviews the proposal and the recommendation to <br />determine conformance with this policy. The authority makes a recommendation to <br />the City Council. <br />5. After meeting the statutory requirements for establishing the Tax Increment District, <br />the City Council holds a Public Hearing and takes action on the proposal <br />(Approximately 45-60 days). <br />