7.1. EDSR 06-15-2020 - Laserfiche WebLink

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Big Lake Tax Abatement Policy Last Amended ‒ 2/28/2018 Page 3 of 5 improvements, site improvements and public streets/utilities. Ineligible expenditures are non-fixed assets including equipment and working capital. IV. Financing Structure The City will structure Abatements as a direct annual or semi-annual payment (corresponding to the City’s portion of the property taxes only) to the property owner based on the terms and conditions stated in an agreement between the City and the property owner. The property owner is subject to changes in the taxes that may result in payments lower than the original estimated amount. V. Specific Policies for the Use of Tax Abatement 1. Tax Abatement will be provided to the developer upon receipt of taxes as a pay-as- you-go method. All taxes on the subject parcel need to be paid to date before a rebate payment will be made. Requests for up-front financing (bonds) will be considered on a case-by-case basis. 2. Developer shall be able to demonstrate a need for a proposed project. 3. Tax Abatement shall not be used for projects or businesses that would place extraordinary demands on city services considering the benefit to the City. 4. The developer must enter into an abatement agreement to ensure compliance with the City policies and requirements. 5. The developer shall demonstrate his or her ability (via past experience, credit history and corporate or personal financial statements) to complete the project in an adequate and timely manner, and also at the option of the City, shall provide financial guarantees to ensure completion of the project that include but are not limited to: assessment agreements, letters of credit and personal guarantees. 6. The developer/business shall provide information necessary for the City to make a determination on the project. 7. The City will view projects having a county/school district tax abatement commitment more favorably. 8. The project supports and furthers the City’s Comprehensive Plan and/or other public policies, as adopted by the City. 9. Tax Abatement may be used to phase in a property tax increase on a parcel that will increase in estimated market value of 50 percent or greater when the increase is not attributable to an abatement project.