08-19-2002 CC MIN - Laserfiche WebLink

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City Council Minutes August 19, 2002 Page 2 Consider Adoption of the City. of Elk River TRF Policy. as Amended Director of Economic Development Catherine Mehelich reviewed amendments to the Tax Rebate Financing Policy made by the Economic Development Authority. COUNCILMEMBER MOTIN MOVED TO APPROVE THE FOLLOWING AMENDMENTS TO THE CITY'S TAX REBATE FINANCING (TRF) POLICY: ANY DEVELOPER RECEIVING TRF ASSISTANCE SHALL PROVIDE A MINIMUM OF TWENTY PERCENT (20%) CASH EQUITY INVESTMENT IN THE PROJECT. PROJECTS UTILIZING THE SBA504 PROGRAM WILL BE REQUIRED TO PROVIDE A MINIMUM OF TEN PERCENT (10%) CASH EQUITY INVESTMENT. (SECTION IV.B0 TRF PROPOSALS SHALL NOT BE USED TO SUPPORT SPECULATIVE OFFICE PROJECTS. SPECULATIVE PROJECTS ARE DEFINED AS THOSE PROJECTS WHICH HAVE PRE-LEASING AGREEMENTS OR LETTERS OF INTENT FOR LESS THAN 50% OF THE AVAII.akBLE SPACE. IN ADDITION, LEASABLE OFFICE PROJECTS MUST MEET THE FOLLOWING GUIDELINES: EVIDENCE OF THE 50% OCCUPANCY MUST BE REPORTED TO THE DIRECTOR OF ECONOMIC DEVELOPMENT SIX MONTHS FOLLOWING AN ISSUED CERTIFICATE OF OCCUPANCY. 50% OF THE JOBS WITHIN THE LEASABLE OFFICE BUILDING SPACE MUST BE CONSIDERED "NEW" JOBS TO THE CITY OF ELK RIVER, MEANING JOBS NOT LOCATED IN THE CITY AT ANY TIME PRIOR TO OCCUPYING SPACE IN THE PROJECT. BUSINESS RETENTION JOBS WILL BE CONSIDERED ON A ONE-FOR-ONE MATCH TO JOB CREATION ONLY IN CASES WHERE JOB LOSS IS SPECIFIC AND DEMONSTRABLE IN ACCORDANCE WITH THE MN BUSINESS SUBSIDY LAW. EVIDENCE MAY INCLUDE DOCUMENTATION THAT THE COMPANY WILL HAVE TO CLOSE INVOLUNTARILY, OR THE COMPANY HAS RECEIVED AN ATTRACTIVE OFFER TO MOVE TO ANOTHER STATE OR COMMUNITY. (SECTION IV.J.) OFFICE FACILITIES REMAIN ELIGIBLE FOR TRF BUT WITH THE MINIMUM REQUIREMENTS OF 25,000 SQUARE FEET NEW CONSTRUCTION AND RESULT IN A MINIMUM MARKET VALUE OF $1,000,000 UPON PROJECT COMPLETION. (SECTIONV.B.)