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Item # 4 <br /> City of <br /> Elk -ft., <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> Mayor & City Council <br /> FROM: Catherine Mehelich, Director of Economic Development <br /> DATE: August 19, 2002 <br /> SUBJECT: Consider Adoption of the City's Tax Rebate Financing Policy as <br /> Amended <br /> Attachments <br /> • Amended Tax Rebate Financing Policy,August 2002 <br /> • Existing Tax Rebate Financing Policy,Adopted April 2000 <br /> Background <br /> At its June and July 2002 meetings the City Council and EDA discussed Tax Rebate <br /> Financing policy issues related to office development. State law provides individual taxing <br /> jurisdictions the flexibility to define their own priorities for the use of tax abatement. The <br /> policy is to be used as a guide in the processing and review of applications requesting TRF <br /> assistance. <br /> The attached amended policy incorporates the following items discussed at the July 2002 <br /> meeting: <br /> • Any developer receiving TRF assistance shall provide a minimum of twenty percent <br /> (20%) cash equity investment in the project. Projects utilizing the SBA504 program <br /> will be required to provide a minimum of ten percent (10%) cash equity investment. <br /> (Section IV.b.) <br /> • TRF proposals shall not be used to support speculative office projects. Speculative <br /> projects are defined as those projects which have pre-leasing agreements or letters of <br /> intent for less than 50% of the available space. <br /> In addition,leasible office projects must meet the following guidelines: <br /> 1. Evidence of the 50% lease commitment must be reported to the <br /> Director of Economic Development six months following an issued <br /> • certificate of occupancy. <br />