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River <br /> <br />Item <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br />DATE: <br /> <br />Economic Development Authority <br />Mayor & City Council <br /> <br />Catherine Mehelich, Director of Economic Development//9~ <br />August 19, 2002 <br /> <br />SUBJECT: Consider Adoption of the City's Tax Rebate Financing Policy as <br /> Amended <br /> <br />Attachments <br /> · Amended Tax Rebate Financing Policy, August 2002 <br /> · Existing Tax Rebate Financing Policy, Adopted April 2000 <br /> <br />Background <br />At its June and July 2002 meetings the City Council and EDA discussed Tax Rebate <br />Financing policy issues related to office development.' State law provides individual taxing <br />jurisdictions the flexibility to define their own priorities for the use of tax abatement. The <br />policy is to be used as a guide in the processing and review of applications requesting TRF <br />assistance. <br /> <br />The attached amended policy incorporates the following items discussed at the July 2002 <br />meeting: <br /> <br />Any developer receiving TRF assistance shall provide a minimum of twenty percent <br />(20%) cash equity investment in the project. Projects utilizing the SBAS04 program <br />~vill be requited to provide a minimum of ten percent (10%) cash equity investment. <br />(Section IV.bO <br /> <br />TRF proposals shall not be used to support speculative office projects. Speculative <br />projects are defined as those projects which have pre-leasing agreements or letters of <br />intent for less than 50% of the available space. <br /> In addition, leasible office projects must meet the following guidelines: <br /> 1. Evidence of the 50% lease commitment must be reported to the <br /> Director of Economic Development six months following an issued <br /> certificate of occupancy. <br /> <br /> <br />