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Request for Action <br /> <br /> <br />To Item Number <br />Economic Development Authority 2.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session March 18, 2019 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Energy Incentive Program Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Discuss the Energy Incentive Program and Policy. <br /> <br />Background/Discussion <br />At their December 17, 2018, meeting the EDA heard a presentation on the new Energy Incentive Program <br />utilizing Elk River Municipal Utilities (ERMU) Payment in Lieu of Taxes (PILOT) to the city. <br /> <br />This incentive would waive PILOT as a development tool for new businesses meeting very specific criteria <br />and redirect it as a credit distributed through the applicant’s electric service bill for up to two years. The <br />amount of the incentive shall be determined by ERMU in its sole discretion in consultation with the city. <br /> <br />To be eligible, the business must be located within the ERMU electric service territory in which the electric <br />sales are included in the calculation for the city PILOT and the project must meet all other applicable <br />provisions of the policy. <br /> <br />At their February 19, 2019, meeting, the EDA discussed the policy and whether there was a need for a <br />lengthy application and review process and a fee to apply for the program. The EDA attorney evaluated the <br />need for the application, review process and fee. Our attorney suggested that it would be fine to forgo an <br />application fee and simplify the process as long as the criterion for qualifying for the program is clearly <br />stated. She indicated that with this type of financial assistance, being that this is not a loan to the applicant, <br />there is not a need for the Joint Finance Committee to review the application. She suggested keeping the <br />application as part of the program for reporting and auditing purposes. <br /> <br />Our attorney added a clause in the policy to address financial assistance greater than $150,000, which the <br />EDA would need to hold a public hearing, and will add some costs. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> Energy Incentive Program Policy and Application (revised and redlined) <br /> ERMU PILOT Policy <br /> Map <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />