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<br />e <br /> <br />e <br /> <br />e <br /> <br />CITY SOURCES/CITY PARTICIPATION <br /> <br />RE: <br /> <br />ELK RIVER BUSINESS PARK FINANCING CONCEPTS <br /> <br />*Tax <br /> <br />Increment Financing (TIF) <br />- Access funds for existing TIF Districts to purchase <br />land and/or improve property <br />- Recapture funds through: <br />a) cash sales; or b) creating new TIF Districts <br />- Reuse TIF Funds for other phases <br /> <br />*EDA Levy <br />- Use a portion of the EDA's annual levy to acquire <br />land and/or make improvements <br />- Excess Levy (reverse referendum) <br /> <br />*HRA <br /> <br />- Historically, the HRA is an urban renewal agency <br />- Possible partner (i.e. co-developer with EDA) <br /> <br />*Minnesota Statutes, Chapter 429 <br />Enables cities to bond for infrastructure <br />improvements, subject to the 20% threshold. That is, <br />20% of the bond issue must be used for street, water, <br />sewer, etc., costs. Staff is exploring the merits of <br />utilizing the balance of a bond issue for, say land <br />purchases <br /> <br />*Grants <br /> <br />- U.S. Economic Development Administration <br />*Funds available for infrastructure costs <br />*Does not fund 100% of costs <br />* Finite grant pool <br /> <br />- Utility Companies <br />*Possible co-developer, or; <br />*Cash grant to underwrite a portion of the costs <br /> <br />*Internal Financing <br />Access funds from various City accounts <br />- Funds are finite <br />- Funds need to be repaid <br /> <br />*Borrowed Funds <br />- Via Contract for Deed <br />- Via 5 year mortgage against the land <br />