4.5. SR 04-10-2000 - Laserfiche WebLink

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Item 4.5. 'ity of ,TO: DATE: SUBJECT: MEMORANDUM Elk River City Council Marc Nevinski, Acting Director of Economic Development April 10, 2000 Public Hearing - Adoption of Tax Rebate Financing Policy Issue The issue before the City Council is to hold a public hearing on and consider the adoption of the city's Tax Rebate Financing policy. Background Tax Rebate Financing (TRF), also referred to as Tax Abatement, is similar to Tax Increment Financing (TIF) in that the increased tax dollars generated by a project are used to pay for various development costs. The primary difference however, is that the applicant must make a request to each political body (city, county, school district) to have their portion of the property tax rebated. Subsequently, applicants are likely to receive less dollars for their project with TRF than with TIF, as not all the political bodies are likely to rebate the taxes. However, TRF is much easier to use and administer than TIF, making it an ideal tool for smaller projects (less than 25,000 sf). Furthermore, TRF is much more flexible than TIF in its application and may provide opportunities to complete community development projects that do not fall within the parameters of TIF. The EDA will also hold a public hearing on the TRF policy prior to the City Council meeting and is anticipated to adopt the policy at that time. The HRA will also hold a public hearing on the policy at its April 24, 2000 meeting. Action Requested State law requires that a public hearing be held on the Tax Rebate Financing policy before it is adopted. Staff recommends that the City Council consider any input provided at the public hearing and then adopt the TRF policies. Attachments · Tax Rebate Financing Policy 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425