10.1. SR 02-05-2018 - Laserfiche WebLink

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City of Elk River, Minnesota Tax Increment Applications for Proposed Jackson Hill Residential Suites Housing Project and Elk River Lodge and Residential Suites, LLC January 25, 2018 Page 6 Revenues from a housing district may be spent anywhere within the City as long as the project that is being financed meets the statutory definition of a housing project. Revenues from a redevelopment district may be spent within the boundaries of a project area, subject to certain percentage limitations and timing restrictions. Based on the tax increment revenue analysis provided in the chart above, it is anticipated that should the Jackson Hills Residential Suites project proceed, there may be surplus revenues available that could be spent on other eligible housing projects. An example of this may include the improvements to the Elk River Lodge site, as well as any other affordable housing projects that may be identified within the City. Policy Application The City's tax increment financing policy and application has been under review by the EDA, EDA Finance Committee, HRA and City Council for the past year. Following review, the updated policy and application has been approved and is currently being utilized. The policy provides the public purposes for which the City will consider the use of TIF for projects, as well as the policy objectives to be considered with TIF projects. The policy also addresses the terms of TIF projects and indicates they will be limited to the minimum term necessary to meet the project needs. Only projects exceeding the objectives identified in the policy will be considered to exceed the policy's general thresholds. The public purpose objectives as listed in the policy and application are as follows: 1. Demonstrate long-term benefits to the community. 2. Retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits through: Diversification of the local economy. Significant addition of permanent, high -wage, full-time jobs. Addition of jobs attractive to those unemployed or underemployed. 3. Significantly increases the city's commercial and industrial tax base. 4. Demonstrates the ability to encourage unsubsidized private development through "spin off' development. 5. Facilitates the development process and achieves development on sites that would not develop "but for" the use of TIF. 6. Removes blight and/or encourages redevelopment of commercial and industrial areas resulting in high quality redevelopment and private reinvestment. 7. Offsets redevelopment costs (i.e. contaminated site cleanup) over and above the costs normally incurred in development. 8. Aids the implementation of the Mississippi Connections Plan. The policy thresholds for a housing district are 15 years (maximum is 26 years), with consideration that each project must meet the "but for" test. Meeting this test and verifying the amount of assistance that is needed will assist with determining the ultimate term of a district. The applicant has requested tax increment revenues be captured for the maximum 26 year term of a housing TIF district with the first 15 years pledged for the Jackson Hills housing project and the remaining 11 years pledged to the Elk River Lodge housing project.