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I. POLICY PURPOSE <br /> For the purposes of this document, the term "City"shall include the Hugo City Council and <br /> Economic Development Authority. <br /> The purpose of this policy is to establish the City of Hugo's position relating <br /> to the use of Tax Increment Financing (TIF) for private development above <br /> and beyond the requirements and limitations set forth by State Law. This <br /> policy shall be used as a guide in the processing and review of applications <br /> requesting tax increment assistance. The fundamental purpose of tax <br /> increment financing in Hugo is to encourage desirable development or <br /> redevelopment that would not otherwise occur but for the assistance <br /> provided through TIF. <br /> The City of Hugo is granted the power to utilize TIF by the Minnesota Tax <br /> Increment Financing Act, as amended. It is the intent of the City to provide <br /> the minimum amount of TIF at the shortest term required for the project to <br /> proceed. The City reserves the right to approve or reject projects on a case <br /> by case basis,taking into consideration established policies, project criteria, <br /> and demand on city services in relation to the potential benefits from the <br /> project. Meeting policy criteria does not guarantee the award of TIF to the <br /> project. Approval or denial of one project is not intended to set precedent for <br /> approval or denial of another project. <br /> The City Council and Eccmic Developmtt A a frog <br /> this policy for projects that supersede the objectives identified herein <br /> II. OBJECTIVES OF TAX INCREMENT FINANCING <br /> As a matter of adopted policy, the City will consider using TIF to assist <br /> private development projects to achieve one or more of the following <br /> objectives: <br /> • To retain local jobs and/or increase the number and diversity of jobs <br /> that offer stable employment and/or attractive wages and benefits. <br /> • To encourage additional unsubsidized private development in the <br /> area, either directly or indirectly through "spin off' development. <br /> • To facilitate the development process and to achieve development on <br /> sites which would not otherwise be developed but/for the use of TIF. <br /> • To remove blight and/or encourage redevelopment of commercial and <br /> industrial areas in the city that result in high quality redevelopment <br /> and private reinvestment. <br /> • To offset increased costs of redevelopment (i.e. contaminated site <br /> clean up) over and above the costs normally incurred in development. <br /> • To create opportunities for affordable housing. <br /> 3 <br />