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Burnsville Development Tools Criteria and Public Financing Policy Page 3 <br />3.PUBLIC FINANCING PRINCIPLES: <br />A.The guidelines and principles set forth in this document pertain to all <br />applications for City public financial assistance regardless of whether they <br />are considered a Business Subsidy as defined by the Statutes. The <br />following general assumptions of development/redevelopment shall serve <br />as a guide for City public financial assistance: <br />1.All viable requests for City public financial assistance shall be <br />reviewed by staff, and, if so designated, a third-party financial advisor <br />who will inform the City of its findings and recommendations. This <br />process, known as the “But For” analysis is intended to determine if <br />the project would not be feasible but for the City assistance. <br />2.City staff and a third-party financial advisor will prepare a <br />memorandum for the City Council and EDA documenting the “But <br />For” Test has been met. <br />3.The City shall establish mechanisms within the development <br />agreement to ensure that adequate checks and balances are <br />incorporated in the distribution of financial assistance where feasible <br />and appropriate, including but not limited to: <br />a.Establishment of “look back provisions” <br />b.Establishment of minimum assessment agreements <br />c.Documentation of all costs <br />4.TIF and abatement will be provided on a pay-as-you-go-basis. Any <br />request for upfront assistance will be evaluated on its own merits and <br />may require security to cover any risks assumed by the City. <br />5.The City may set up TIF districts in accordance with the maximum <br />number of statutory years allowable; however, this does not mean <br />that the applicant will be granted assistance for the full term of the <br />district. <br />6.The City shall elect to have the fiscal disparities contribution come <br />from inside applicable TIF district(s) to eliminate any impact to the <br />existing tax payers of the community. <br />7.Public financing will not be used in projects that would give a <br />significant competitive financial advantage over similar projects in <br />the area due to the use of public subsidies. Applicants should be <br />able to provide information to support that City public financial <br />assistance will not create such a competitive advantage. Priority <br />consideration will be given to projects that fill an unmet market need. <br />8.Public financial assistance will not be used in a project that involves <br />a land and/or property acquisition where the price is in excess of the <br />fair market value.