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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. POLICIES FOR THE USE OF TIF <br /> a. When possible, TIF shall be used to finance public improvements associated <br /> with the project. The priority for the use of TIF funds 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. The following types of TIF districts may be established: <br /> 1. Economic Development Districts (maximum term 9 years) <br /> 2. Redevelopment Districts (maximum term 26 years) <br /> 3. Housing Districts (maximum term 26 years) <br /> 4. Renewal and Renovation Districts (maximum term 16 years) <br /> Other types of TIF districts, along with specific criteria, may be considered on a <br /> case by case basis. <br /> c. TIF 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 /> d. A maximum of ten percent(10%) of any tax increment received from the <br /> district shall be retained by the City to reimburse administrative costs. <br /> e. Only for a project which significantly supersedes the objectives identified <br /> herein, will the term of the TIF assistance exceed 15 years. <br /> f. Any developer receiving TIF assistance shall provide a minimum of twenty <br /> percent(20%)cash equity investment in the project. The assistance shall not <br /> be used to supplant cash equity. <br /> g. TIF shall not be used in circumstances where land and/or property price is in <br /> excess of fair market value. An appraisal by a third party, agreed upon by the <br /> City and Developer, will determine the fair market value of the land. <br /> Page 8 <br />