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City of ,Minnesota <br /> • To offset increased costs of redevelopment(i.e. contaminated site clean up) over <br /> and above the costs normally incurred in development. <br /> • To create opportunities for affordable housing. <br /> • To contribute to the implementation of other public policies, as adopted by the city <br /> from time to time, such as the promotion of quality urban or architectural design, <br /> energy conservation, and decreasing capital and/or operating costs of local <br /> government. <br /> C. POLICY FOR THE USE OF TAX ABATEMENT <br /> a. When possible, Tax Abatement shall be used to finance public improvements <br /> associated with the project. The priority for the use of Tax Abatement funds <br /> is: <br /> 1. Public improvements, legal, administrative, and engineering costs. <br /> 2. Site preparation, site improvement, land purchase,demolition, and <br /> environmental remediation. <br /> 3. Capitalized interest, bonding costs. <br /> b. Tax abatement assistance shall be provided to the developer upon receipt of <br /> the increment by the City, otherwise referred to as the pay-as-you-go method. <br /> Requests for up front financing will be considered on a case by case basis. —1 <br /> c. Any developer receiving assistance shall provide a minimum of twenty percent <br /> (20%) cash equity investment in the project. The assistance shall not be used <br /> to supplant cash equity. <br /> d. Tax abatement assistance will be considered for up to a maximum of 10 years <br /> using an agreed-upon formula. Full abatements, or partial, may be phased in <br /> over 10 years based on need and each situation. <br /> e. Assistance shall not be provided for reimbursement of land and/or property <br /> price that is in excess of fair market value. An appraisal by a third party, <br /> agreed upon by the City and Developer, will determine the fair market value of <br /> the land. <br /> f. Developer shall be able to demonstrate a market demand for a proposed <br /> project. Assistance shall not be granted to support purely speculative <br /> projects. <br /> g. Business assistance shall not be utilized in cases where it would create an <br /> unfair and significant competitive financial advantage over other projects in the <br /> area. <br /> Page 4 <br />