7.1. EDSR 06-15-2020 - Laserfiche WebLink

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I. POLICY PURPOSE For the purposes of this document the term "City” shall include the Anoka City Council, Economic Development Commission, and Housing and Redevelopment Authority. The purpose of this policy is to establish the City of Anoka's position relating to the use of Tax Rebate Financing (T'RF), otherwise referred to as Tax Abatement, for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax rebate assistance. The fundamental purpose of tax rebate financing in Anoka is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TRF. The City of Anoka is granted the power to utilize TRF by the Minnesota Tax Abatement Act, as amended. It is the intent of the City to provide the minimum amount of TRF, as well as other incentives, at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of TRF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TRF & TIF The primary difference between Tax Rebate Financing JR) and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project by the city, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when TRF is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Subsequently, the dollars generated for the project with TRF are generally less than the dollars generated with TIF. Tax Rebate Financing cannot be applied to parcels in an active tax increment district. III. OBJECTIVES OF TAX REBATE FINANCING As a matter of adopted policy, the city will consider using TRF to assist private development projects to achieve one or more of the following objectives:  To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits.  To enhance and diversify the city of Anoka's economic base. Policy Number 2003-01 Adopted January 6, 2003 TAX REBATE FINANCING POLICY