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Notwithstanding the definitions listed above under 1 and 21, "business subsidies" as defined also includes <br />the following forms of financial assistance and is subject to this policy, with the exception of a public <br />hearing as the amount of assistance is less than $150,000, with limited reporting forms required: <br /> <br />1. a business subsidy of $25,000 or more; and <br />2. business loans and guarantees of $75,000 or more. <br /> <br />The definition of a “business subsidy” is in compliance with the current Minnesota Business Subsidy Law <br />and is subject to any law changes that may occur. <br /> <br /> <br />III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES <br /> <br />In accordance with the Minnesota Business Subsidy Law, the City will consider using business subsidies to <br />assist private development projects to achieve one or more of the following public purpose objectives: <br /> To retain local jobs and/or increase the number and diversity of jobs that offer stable <br />employment and/or attractive wages and benefits. <br /> To enhance and diversify the City of Elk River’s tax base. <br /> To encourage additional unsubsidized private development in the area, either directly or <br />indirectly through “spin off” development. <br /> To achieve development on sites which would not be developed without business subsidies <br />assistance. <br /> To remove blight and/or encourage development of commercial and industrial areas in the city <br />that result in higher quality development or redevelopment and private investment. <br /> To offset increased costs of development of specific properties when the unique physical <br />characteristics of the site may otherwise preclude private investment. <br /> To create opportunities for the construction, operation and maintenance of affordable housing. <br /> <br /> <br />IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES <br /> <br />A. Business subsidy assistance will be provided from the City, on a “pay-as-you-go” note method, to <br />the developer if the business subsidy is tax increment financing or tax abatement. Requests for up <br />front financing will be considered on a case-by-case basis. <br /> <br />B. A developer requesting business subsidy assistance must demonstrate, to the satisfaction of the City, <br />sufficient cash equity investment in the project as required within the City’s policy for the particular <br />form of subsidy. <br /> <br />C. Business subsidy assistance will not be provided in circumstances where land and/or property price <br />is demonstrated by the County Assessor to be in excess of fair market value. This would normally <br />be where the acquisition price is more than 10% in excess of market value. <br /> <br />D. A developer must be able to demonstrate to the City, or, if applicable, to the underwriting authority, <br />a market-demand for a proposed project. <br /> <br /> <br /> <br />5 <br />