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Item 6 . EDA <br /> • Item 5 . 1 . CC <br /> N <br /> city <br /> ikIN <br /> River <br /> MEMORANDUM <br /> • <br /> TO: Economic Development Authority <br /> Mayor & City Council <br /> FROM: Catherine Mehelich, Director of Economic Development <br /> DATE: July 8, 2002 <br /> SUBJECT: Consider Adoption of the City's Tax Rebate Financing Policy as <br /> Amended <br /> Attachments <br /> • Amended Tax Rebate Financing Policy,July 2002 <br /> • • Existing Tax Rebate Financing Policy,Adopted April 2000 <br /> Background <br /> At its June 24, 2002 meeting the City Council and EDA discussed Tax Rebate Financing <br /> policy issues related to office development. State law provides individual taxing jurisdictions <br /> the flexibility to define their own priorities for the use of tax abatement. The policy is to be <br /> used as a guide in the processing and review of applications requesting TRF assistance. <br /> The attached amended policy incorporates the following items: <br /> • Speculative office development is not eligible for TRF assistance. Speculative <br /> projects are defined as those projects which have pre-leasing agreements for less <br /> than 50% of the available space. In addition, 50% of the jobs within the leasible <br /> office space must be "new" jobs to the City of Elk River,meaning jobs provided by <br /> employers not located in the city at any time prior to occupying space in the project. <br /> (Section IV.j.). Per the Business Subsidy Law, subsidy agreement goals would be <br /> reported and evaluated annually for two years after the date the benefit is received or <br /> until all goals have been met. If the recipient fails to meet the goals they would be <br /> required to pay back the assistance plus interest. <br /> • Office facilities remain eligible for TRF but with the minimum requirements of <br /> 25,000 square feet new construction and result in a minimum market value of <br /> • $1,000,000 upon project completion. (SectionV.b.) <br />