02/03/2022 EDAC Packet - Laserfiche WebLink

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Financial Assistance Policy Page 3 • To create opportunities for life cycle housing. • Construction of public improvements that benefit the City of Lino Lakes, its residents and businesses. • To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government. IV. POLICIES FOR THE USE OF FINANCIAL ASSISTANCE a. Tax Increment or Tax Abatement assistance will be provided to the developer upon receipt of taxes by the City, otherwise referred to as the pay-as-you-go method. Requests for up-front financing will be considered on a case-by-case basis, for project related public improvements. b. Any developer receiving financial assistance shall provide a minimum of fifteen percent (15%) cash equity investment in the project. c. Developer shall be able to demonstrate a market demand for a proposed project. d. Assistance may not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects and/or existing businesses in the area. e. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, et cetera. f. The developer shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. g. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. h. Financial commitments should not exceed 16% of the estimated market value of the project. V. PROJECT QUALIFICATIONS All Tax Increment or Tax Abatement projects considered by the City of Lino Lakes must meet each of the following requirements: a. The project shall meet at least one of the objectives set forth in section III of this document. b. The project shall meet the policy requirements set forth in section IV of this document. Enhancing or diversifying the City’s tax base cannot be the sole grounds for assistance.