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Big Lake Tax Abatement Policy <br />Last Amended ‒ 2/28/2018 <br /> Page 4 of 5 <br /> <br />10. The business subsidy funding for any project shall be the lowest amount feasible <br />for the shortest period of time. Business/developers shall exhaust all possible <br />forms of non-business subsidy funding, i.e. private debt and equity financing prior <br />to using business subsidy finding. <br /> <br />11. Any receipt of Tax Abatement assistance will be required to provide an equity <br />investment in the project. <br /> <br />12. Tax Abatement will not be used in circumstances where land and or property price <br />is in excess of fair market value. <br /> <br />13. Tax Abatement will not be utilized in cases where it would create an unfair <br />competitive financial advantage over other projects or businesses in the area. <br /> <br />14. No abatement of taxes will be granted on property in a TIF District. <br /> <br />15. The project shall comply with all provisions set forth in the state Abatement Law. <br /> <br />16. Abatement can only be granted, if it benefits the City to a level equal to or greater <br />than the abatement cost to the City. <br /> <br />17. In any year, the total amount of property taxes abated by the City may not exceed <br />ten percent (10%) of the net tax capacity of the City or $200,000, whichever is <br />greater. This is consistent with the Abatement Law. <br /> <br />18. No tax abatement period shall exceed 15 years from the date of approval by the <br />City Council unless the county or school district has declined to participate in the <br />abatement. In this event, the City may approve an abatement period that is up to <br />20 years in length. <br /> <br />19. The City Council may change and modify the application of these specific policies <br />as it deems necessary and appropriate. <br /> <br /> <br />VI. Decision Guidelines or Project Requirements <br /> <br />The following guidelines will be used by the City in order to determine whether a <br />financing proposal is warranted which will become the basis for findings in the resolution <br />of Abatement approval. <br /> <br />A. The proposed project does not fit well within the City’s and the Economic <br />Development Authority’s Tax Abatement Policy or is subject to other state statute <br />restrictions. <br /> <br />B. The proposed project addresses an identified need within the community, including <br />but not limited to, improved maintenance or expansion of public utilities, reuse of <br />underutilized property, or development of property with site constraints, installation