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City of Lino Lakes, Minnesota <br />I. POLICY PURPOSE <br />The purpose of this policy is to establish the City of Lino Lakes' <br />position relating to the use of Tax Abatement, for private <br />development above and beyond the requirements and limitations <br />set forth by State Law. This policy shall be used as a guide in the <br />processing and review of applications requesting tax abatement <br />assistance. The fundamental purpose of Tax Abatement in the <br />City of Lino Lakes is to encourage desirable development or <br />redevelopment that would not otherwise occur but for the <br />assistance provided through Tax Abatement. <br />The City of Lino Lakes is granted the power to utilize Tax <br />Abatement by the Minnesota Tax Abatement Act, as amended. It <br />is the intent of the City to provide the minimum amount of Tax <br />Abatement, as well as other incentives, at the shortest term <br />required for the project to proceed. The City reserves the right to <br />approve or reject projects on a case by case basis, taking into <br />consideration established policies, project criteria, and demand on <br />city services in relation to the potential benefits from the project. <br />Meeting policy criteria does not guarantee the award of Tax <br />Abatement to the project. Approval or denial of one project is not <br />intended to set precedent for approval or denial of another project. <br />II. DIFFERENCE BETWEEN TAX ABATEMENT & TAX <br />INCREMENT FINANCING <br />The primary difference between Tax Abatement and Tax <br />Increment Financing (TIF) is the way in which the dollars are <br />awarded to the project. When TIF is awarded to a project by the <br />city, the other political subdivisions (the school district and the <br />county) are required to contribute their portion of the increased <br />taxes to the project. Conversely, when Tax Abatement is <br />requested, each political subdivision has the option of granting its <br />portion of the increased taxes to the project. Subsequently, the <br />dollars generated for the project with Tax Abatement are generally <br />less than the dollars generated with TIF. <br />III. OBJECTIVES OF TAX ABATEMENT <br />As a matter of adopted policy, the City will consider using Tax <br />Abatement to assist private development projects to achieve one <br />or more of the following objectives: <br />To Provide assistance in the Town Center <br />• To retain local jobs and/or increase the number and <br />diversity of jobs that offer stable employment and/or <br />attractive wages and benefits. <br />• To enhance and diversify the City of Lino Lakes' economic <br />base. <br />�i SPRINGSTED Page 1 <br />