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CITY OF ELK RIVER <br />POLICY AND PROCEDURES RELATING <br /> THE USE OF BUSINESS SUBSIDIES <br /> <br />TO <br /> <br />I. PURPOSE <br />]or the pu~oses of this document, the term "City" ~hall ira'&de ?he Elk River City Council, E~vnomic Deve/opment <br />,.4uthority, and J-Jousing and Redevelopment :4uthorz'ty. <br /> <br />The purpose of fins policy is to establish guideines and criteria regarding the use of business <br />subsidies, such as tax increment financing (TIF), tax abatement, and other business subsidies <br />for pfvate development projects within the City of Elk River and shall be m 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 shah 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 business subsidies, as well as other incentives that the <br />City may deem appropriate, at the shortest term required for the project to proceed. The <br />City reserves the fight to approve or reject projects on a case-by-case basis, taking into <br />account established policies, specific project criteria, and demand on city services in relation <br />to the potential benefits to be received from a proposed project. Meeting policy guidelines <br />or other critefa does not guarantee the fward of business subsidies. Furthermore, the <br />approval or denial of one project is not intended to set precedent for approval or denial of <br />another project. <br /> <br />Whenever possible it is the City's intent to coordinate the use of business subsidies with <br />other applicable taxing Ndsdictions. <br /> <br />I!. DEFINITION OF "BUSINESS SUBSIDY" <br /> <br />The following tTpes of assistance having a value in exces~s of $25,000 are deemed 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 us~ of government facilities. <br /> <br />City of Elk River Business Subsidies Policy 2 <br /> <br /> <br />