4.1. SR 03-13-2000 - Laserfiche WebLink

Home Browse Search

'~ity of ITEM f 4.1. MEMORANDUM iver o: Elk River City Council DATE: Marc Nevinski, Acting Director of Economic Development March 13, 2000 SUBJECT: Public Hearing - Consider Modifications to the Tax Increment Financing Policy 18sue Modifications to the city's Tax Increment Financing policy have been made to comply with new state statues and to more clearly state the city's position for the use of TIF. At its February 14, 2000 meeting the EDA was presented with a draft of the modifications made by staff and provided additional input on the proposed revisions. The issue before the council tonight is to hold a public hearing on the modified policies and consider their approval. Background The new state statues regarding business subsidies mandates that cities modify their current incentive and subsidy policies to include provisions stipulated by the business subsidy law. The law also requires that the city hold a public hearing on such modified policies before providing subsidies. The primary modification includes the addition of a ratings scale for various project applicants. Such a rating scale will enable staff, as well as the HRA, EDA, and City Council, to better analyze a given project for its eligibility for TIF. Staff presents this rating scale under the assumption that every project that requests TIF may not necessarily qualify for it under these guidelines. For applicants who do not qualify based upon the rating method, tax abatement may be a potential financing alternative. Recommendation Staff recommends that the City Council consider any input provided at the public hearing and then adopt the revised tax increment policies. Attachment · Modified TIF policies 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425