5.1. SR 06-24-2002 - Laserfiche WebLink

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River MEMORANDUM TO: FROM: DATE: Mayor & City Council Economic Development Authority Catherine Mehelich, Director of Economic Development//~//~ June 24, 2002 SUBJECT: Consider Amendment to City's Tax Rebate Financing (Abatement) Policy Item 5.1. Attachments · Property Tax Abatement Statues, July 2001 · City of Elk River Tax Rebate Financing Policy · Sample Project Evaluation Criteria Background The City's Tax Rebate Financing Policy was drafted and adopted by the EDA and City Council in April 2000. The TRF policy was developed to establish the City's position relating to the use of TRF, otherwise referred to as Tax Abatement, for private development above and beyond the requirements and limitations set forth by the attached State Law. Unlike tax increment financing (TIF), State Law provides individual taxing jurisdictions the flexibility to define their own priorities for the use of tax abatement. The policy is to be used as a guide in the processing and review of applications requesting TRF assistance. The policy should reflect the city's priorities for qualifying developments and aggressiveness for desired developments. At its June 10, 2002 meeting the City Council directed staff to draft guidelines for revie~v of the City's Tax Rebate Financing Policy (TRF) as it relates to office development. Current Policy The City's current TRF policy limits the use of TRF to the following projects: · Industrial development, expansion, redevelopment, or rehabilitation · Commercial redevelopment or rehabilitation · Office or research facilities that satisfy Business Park zoning requirements · Residential development and redevelopment may be eligible under a separate set of policies and only with the recommendation of the HRA