6.1. PCSR 12-21-2021 - Laserfiche WebLink

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Action The Planning Commission is being asked to review the Plans as it relates solely to compliance with the TIF Act through adoption of the accompanying resolution. The Planning Commission shall undertake a detailed review of the proposed project described in the TIF Plan as part of the City's normal planning process on a later date. It is being asked to determine that the project within the TIF District meets the following finding: 4. The TIF Plan conforms to general plans for development of the City as a whole. Project Qualifications To establish the area identified above as a Housing TIF District, the project as proposed will need to qualify for inclusion within a housing TIF District. A housing TIF District is a type of tax increment district which consists of a project that is intended for occupancy by persons or families of low and moderate income. Revenue derived from tax increment from a housing district must be used solely to finance the cost of a housing project as defined. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. For the proposed project to qualify as a tax increment financing housing district, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district. The income requirements are as follows: • at least 20% of units are occupied by individuals whose income is 50% or less of area median income, or • at least 40% of units are occupied by individuals whose income is 60% or less of area median income. In addition, not more than 20 percent of the square footage of the buildings that receive assistance from tax increments may consist of commercial, retail, or other non-residential uses. The maximum term of a housing district is 25 years after receipt of first increment for a total of 26 years. The term for the TIF District is proposed to be a maximum of 15 years to follow the City's TIF Policy. Thank you for the opportunity to be of assistance to the City of Elk River. Please contact me at 651-223-3036 or mikaela.huota-bakertilly.com with any questions or to discuss. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances,the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd.,the members of which are separate and independent legal entities.©2018 Baker Tilly Virchow Krause, LLP