10-26-2021 JOINT FINANCE COMMITTEE

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Elk River Economic Development Energy Incentive Program Guidelines, Policy & Application I. Policy Purpose The City of Elk River Economic Development Authority (EDA) and the City of Elk River (City) maintain a goal to stimulate private sector investment for new job creation and tax base growth. The Energy Incentive Program offers a savings to qualified applicants on their Elk River Municipal Utilities (ERMU) electric bills for up to two years. 2. Eligible Businesses Projects located or proposed to be located within the city limits of the City may be eligible for the program as further defined herein: ■ Unless otherwise stated, business must be a for -profit corporation, partnership, limited liability company, or sole proprietorship. ■ Business must be a small business as defined by the Small Business Administration. ■ Only new construction projects qualify. ■ Peak electric demand greater than 50kW per month. ■ Located within eligible ERMU area. ■ The creation of at least 50 new jobs at >_ $18.00 per hour ■ Calculated Economic Output of $10 million through Implan software (information provided by Sherburne County) ■ Project must generate a least $80,000 in total annual property taxes. ■ Religious, political, and pornographic enterprises are not eligible. 3. Regulation for New Construction and Improvements All buildings which public funds will be used for construction are to conform to city code and ordinances and state building codes. 4. Timing of Project Expenses No project shall commence without city council approval of the application. Any costs incurred prior to the approval of the application are not eligible expenditures. No building construction should commence until the required permits are secured. The applicant will be responsible for all legal, recording, and other fees payable by a $2,000 processing fee, which is paid at the time of application. In addition to the processing fee, all legal and filing fees shall be paid by the applicant.