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6. Administrative fees (upfront escrow) will be reimbursed using TIF funds at <br />the completion of the project. This has traditionally been part of the <br />agreements. <br />7. Assessments will be paid up front in the Apollo Business Park to allow for a <br />more expedient return of the City's investment in the park's improvements. <br />8. In other TIF districts, the subsidy for land and assessments will be on a pay-as- <br />you-go basis. This is a change from the old policy, which generally split the <br />subsidy into approximately 50/50 upfront and pay-as-you-go. <br />9. If the subsidy includes upfront payments of assessments, the City will be <br />reimbursed first from available increment. The grantee will receive its pay-as- <br />you-go after the City is paid back. This is more restrictive than in the past, <br />generally the City and the grantee split the increment. <br />10. The source of the 10% local contribution will be identified before the project <br />is approved. <br />EDA Member O'Donnell asked if the TIF commitment of 16% is a minimum or estimate <br />of the market value. Ms. Divine advised the minimum and e ;'mated market values are <br />generally the same. <br />EDA Member Carlson suggested the following be a d o the'. y: <br />"Prospects are not competitors with or replace is for existing local <br />businesses." <br />Ms. Divine advised there is a compan is cu ently a prospect and would be a <br />competitor for an existing business <br />EDA Member Carlson asked s ` otli it es are under TIF. Ms. Divine advised one of <br />the businesses is leasing sp. c <br />EDA President Bergeson stated th;problem with the addition to the policy is that <br />typically these types of businesses are not dependent upon locations. He stated the City <br />would not want to turn down a business that is an asset to the community because of <br />competition with an existing business. <br />EDA Member Carlson advised she was thinking about the addition to the policy more for <br />tax abatement than TIF relating to bars/restaurants and convenience stores. Tax <br />abatement to these types of businesses would give them a strong competitive edge to <br />existing businesses in the community. Ms. Divine advised the board they would be <br />addressing that issue separately during the discussion of the tax abatement policy. <br />EDA Member O'Donnell moved to approve the TIF policy, as presented. EDA Member <br />Dahl seconded the motion. Motion passed unanimously. <br />2 <br />