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20 Development Opportunities on City-Owned Land | Lake Elmo, Minnesota <br />In the meantime, the panel encouraged <br />the City to have internal conversations <br />now to determine its policies regarding the <br />potential use of specific financing tools. <br />Once decisions are made and conveyed to <br />City staff, staff will be better equipped to <br />field questions from developers and manage <br />expectations of the broader community <br />through the process. <br />The following financing tools are generally <br />a part of the development conversation <br />and should be a part of the City’s policy <br />discussions. <br />Tax Increment Financing (TIF). TIF could be <br />used to assist a qualified development. The <br />potential land uses considered for the site in <br />this report may qualify for inclusion in a TIF <br />district pursuant to statutory limitations. TIF <br />is often used to help fund early infrastructure <br />improvements. <br />Tax Abatement. Tax abatement can be <br />used to assist with development of the <br />property and can take the form of direct <br />assistance to developer(s) or assistance <br />with financing public infrastructure. The City <br />may only “leverage” City taxes to assist the <br />development and may not leverage taxes <br />payable to the other taxing jurisdictions. <br />Land Write Down. The City can choose to <br />write down the value of the land in the sale <br />to assist with development. This write-down <br />or discount off the sale price of the land can <br />be attractive to a developer as it provides <br />financial value, in the form of reduced <br />expenses, at the outset of the work. <br />Bonding. The City may use its authority to <br />issue tax-exempt bonds to finance public <br />infrastructure. This may be accomplished <br />by the City assessing a portion of the <br />improvement costs to the property or <br />pledging other sources of revenue to the <br />bonds, which could include utility revenues, <br />tax abatement levies, or ad valorem property <br />taxes, among other sources. A bond could <br />help fund the sewer extension needed to <br />reach Parcels 2 and 3, which is estimated to <br />cost around $700,000-800,000. <br />Wildlife can be seen moving through Parcel 3.