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DRAFT 10/14/02 <br /> <br />III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES <br /> <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 /> <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 enc6urage additional unsubsidized private development in the area, either <br /> directly or indirecdy through "spin off" development. <br /> · To achieve development on sites which would not be developed without <br /> business subsidies assistance. <br /> · To remove bhght 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 other~vise preclude private investment. <br /> · To create opportunities for the construction, operation and maintenance of <br /> affordable housing. <br /> <br />IV. <br /> <br /> A. <br /> <br />GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES <br /> <br />Business subsidy assistance will be provided from the City, by 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 /> <br />Co <br /> <br />D° <br /> <br />go <br /> <br />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 /> <br />Business subsidy will not be provided in circumstances where land and/or property <br />price is demonstrated by the City Assessor to be in excess of fair market value. This <br />would normally be where the acquisition price is more than 10% in excess of market <br />value. <br /> <br />A developer must be able to demonstrate to the City, or, if applicable, to the <br />underwriting authority, a market-demand for a proposed project. <br /> <br />Business subsidy will not be used in cases where the subsidy would create an unfair <br />and significant competitive £mancial advantage over other similar projects in the area. <br /> <br />Business subsidy will not be used for projects that would place extraordinary <br />demands on city infrastructure and services. <br /> <br />City of Elk River Business Subsidies Policy 2 <br /> <br /> <br />