Laserfiche WebLink
<br /> <br />MEMORANDUM <br /> <br />TO: Economic Development Authority <br /> <br />FROM: Catherine Mehelich, Director of Economic Development <br /> <br />DATE: April I 0, 2006 <br /> <br />SUBJECT: Discuss Draft Amendments to the City's Tax Increment <br />Financing Policy and Application <br /> <br />Attachments <br />. Tax Increment Financing Policy and Application, 1st Draft Amended April 2006 <br /> <br />Background <br />Staff has been working on a review of the city's various economic development financing <br />programs and policies for amendments. The City of Elk River adopted its original Tax <br />Increment Financing Policy in August 1991. The policy was amended in March of 2000 to <br />include the provisions of the MN Business Subsidy Law and the City's Business Subsidy <br />Policy. <br /> <br />Issue <br />Since the many of the amendments were minor (but significantly affected the document <br />reformatting) staff has provided the attached clean copy of the revised policy and application <br />for the EDA's review. Please contact staff if you wish to receive a copy of the word-by- <br />word tracking of revised policy amendments. Below is a summary of the significant staff <br />amendments: <br />. Added the following objectives to the use of TIF (Section II) <br />*To significantly increase the City's tax base <br />* To enhance and diversify the City's economic base <br /> <br />. Reduced the owner cash equity requirement from 20% to 10% (Section III) <br /> <br />. Added provision that all TIF proposals optimize the private development potential <br />of a site (Section III) <br /> <br />. Increased the following project qualifications (Section IV) <br />o Minimum increase of $37,500 per year in property taxes (originally $25,000) <br />o Result in a minimum market value of $1,250,000 (originally $1,000,000) <br />