5.0. 6.0. HRSR 05-22-2000 - Laserfiche WebLink

Home Browse Search

ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY MEMORANDUM TO: Housing Redevelopment Authority FROM: Marc Nevinski,Acting Director of "(/ Economic Development DATE: May 22, 2000 SUBJECT: Meeting Agenda 5. Public Hearing Tax Rebate Financing (Tax Abatement) Policy Issue As you will recall, the HRA reviewed the proposed Tax Rebate Financing policy at its April 24, 2000 meeting and provided feedback to staff. Staff requests that the HRA now hold a public hearing and then consider the adoption of the policy. • Background Tax abatement differs from TIF primarily in that each political body is given the option to "abate" its portion of the project's property taxes. Generally, this will result in less dollars being generated for the project than with TIF, although abatement is easier and less costly to administer. The tax abatement policy that staff has drafted is very similar to the revised TIF policy, and also includes a ratings worksheet. The primary difference between the tax abatement and TIF policies is that no minimum threshold for building value or size is stipulated in the tax abatement policy. This is due to the fact that the smaller amount of dollars generated with tax abatement, combined with less administrative time and costs, will make tax abatement more appropriate for smaller scale projects. The tax abatement policy emphasizes industrial development, however, certain redevelopment and commercial projects will be eligible to utilize tax abatement as well. The use of tax abatement for residential projects is not allowed under the proposed policies. However, staff has recommended and the council and EDA have concurred, that a separate set of residential criteria should be drafted for the use of tax abatement in certain situations. • P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment