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111. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES <br />In accordance with the MN Business Subsidy Law, the City will consider using business <br />subsidies to assist private development projects to achieve one or more of the following <br />public purpose objectives: <br />• To retain local jobs and/or increase the number and diversity of jobs that offer <br />stable employment and/or attractive wages and benefits. <br />• To enhance and diversify the City of Elk River's tax base. <br />• To encourage additional unsubsidized private development in the area, either <br />directly or indirectly through "spin off' development. <br />• To achieve development on sites which would not be developed without <br />business subsidies assistance. <br />• To remove blight and/or encourage development of commercial and industrial <br />areas in the city that result in higher quality development or redevelopment and <br />private investment. <br />• To offset increased costs of development of specific properties when the unique <br />physical characteristics of the site may otherwise preclude private investment. <br />• To create opportunities for the construction, operation and maintenance of <br />affordable housing. <br />IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES <br />A. Business subsidy assistance will be provided from the City, on a "pay-as-you-go" <br />note method, to the developer if the business subsidy is tax increment financing or <br />tax abatement. Requests for up front financing will be considered on a case-by-case <br />basis. <br />B. A developer requesting business subsidy assistance must demonstrate, to the <br />satisfaction of the City, sufficient cash equity investment in the project as required <br />within the City's policy for the particular form of subsidy. <br />C. Business subsidy assistance will not be provided in circumstances where land and/or <br />property price is demonstrated by the County Assessor to be in excess of fair market <br />value. This would normally be where the acquisition price is more than 10% in <br />excess of market value. <br />D. A developer must be able to demonstrate to the City, or, if applicable, to the <br />underwriting authority, amarket-demand for a proposed project, <br />E. Business subsidy assistance will not be used in cases where the subsidy would create <br />an unfair and significant competitive financial advantage over other similar projects <br />in the area.. <br />F. Business subsidy assistance will not be used for projects that would place <br />extraordinary demands on city infrastructure and services. <br />City of Elk River Business Subsidy Policy <br />Amended May 2006 <br />