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DRAFT 10/14/02 <br /> <br /> CITY OF ELK RIVER <br />POLICY AND PROCEDURES RELATING TO THE USE OF <br />BUSINESS SUBSIDIES <br /> <br />I. PURPOSE <br />]~or the jousOoses of this document, the term "Ci(y" shall include the Elk River City Council, E~vnomic Development <br />Authoffty, and Housing and Redeve/olOment Muthoffty. <br /> <br />The purpose of this policy is to establish guidelines and criteria regarding the use of business <br />subsidies, such as tax increment financing (TIF), tax abatement, and other business subsidies <br />for private development projects within the City of Elk River and shall be in addition to the <br />requirements and limitations set forth by provisions of Minnesota State Statute 116J.993 <br />(MN Business Subsidy Law), and by the City's policy and guidelines of the particular form of <br />subsidy. <br /> <br />These guidelines shall be used in processing and reviewing applications requesting business <br />subsidies assistance. The fundamental purpose of business subsidies in the City is to <br />encourage desirable development or redevelopment that would not otherwise occur "but <br />for" the assistance provided through business subsidies. <br /> <br />It is the intent of the City to provide a minimum amount of business subsidies, as well as <br />other incentives that the City may deem appropriate, at the shortest term required for the <br />project to proceed. The City reserves the right to approve or reject projects on a case-by- <br />case basis, taking into account established policies, specific project criteria, and demand on <br />city services in relation to the potential benefits to be received from a proposed project. <br />Meeting policy guidelines or other criteria does not guarantee the award of business <br />subsidies. Furthermore, the approval or denial of one project is not intended to set <br />precedent for approval or denial of another project. <br /> <br />Whenever possible it is the City's intent to coordinate the use of business subsidies with <br />other applicable taxing jurisdictions. <br /> <br />II. DEFINITION OF "BUSINESS SUBSIDY" <br /> <br />The following types of assistance having a value in excess of $25,000 are defined as a <br />"business subsidy" within the MN Business Subsidy Law: · State and local government agency grants; <br /> · Contributions of personal property, real property, or infrastructure; <br /> · The principal amount of a loan that exceeds $75,000 at rates <br /> commercially available; <br /> Reductions or deferrals of taxes or fees; <br /> <br />below those <br /> <br />Guarantees of any payment under any loan, lease, or other obligation; and, <br />Preferential use of government facilities. <br /> <br />City of Elk River Business Subsidies Policy 1 <br /> <br /> <br />