2007.02.20 EDA Packet - Laserfiche WebLink

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