6.2 EDSR 11-20-2017 - Laserfiche WebLink

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The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 6.2 Agenda Section General Business Meeting Date November 20, 2017 Prepared by Amanda Othoudt, EDD Item Description TIF Policy Reviewed by Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, the Tax Increment Financing Policy. Background/Discussion The EDA reviewed the new Tax Increment Financing (TIF) policy at their October 16, 2017, meeting. The newly-created policy is intended to replace the existing TIF Policy that was approved by the City Council in February of 2014 and the Housing TIF Policy that was approved in April of 2015. The new policy eliminates the minimum square footage requirement and minimum tax base requirement for projects. The new policy follows market demands as it relates to housing projects identified in the Maxfield Housing Study and is guided by both the Mississippi Connections Plan and Comprehensive Plan. The preferred method of TIF is pay-as-you-go (PAYGO), however upfront financing maybe considered on a case-by-case basis. The city has the authority to approve or deny projects, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Our financial consultant and attorney have reviewed the final version of the TIF policy. Staff recommends the EDA review and make a recommendation to the City Council for action at their December 4, 2017, meeting. Financial Impact None Attachments  2017 TIF Policy (Clean and Markup)