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City of Hugo, Minnesota <br /> • To contribute to the implementation of other public policies, as adopted by the city <br /> from time to time, such as the promotion of quality urban or architectural design, <br /> energy conservation, and decreasing capital and/or operating costs of local <br /> government. <br /> III. POLICIES FOR THE USE OF TIF <br /> a. When possible, TIF shall be used to finance public improvements associated <br /> with the project. The priority for the use of TIF funds is: <br /> 1. Public improvements, legal, administrative, and engineering costs. <br /> 2. Site preparation, site improvement, land purchase, demolition, and <br /> environmental remediation. <br /> 3. Capitalized interest, bonding costs. <br /> b. The following types of TIF districts may be established: <br /> 1. Economic Development Districts <br /> 2. Redevelopment Districts <br /> 3. Housing Districts <br /> 4. Renewal and Renovation Districts <br /> Other types of TIF districts, along with specific criteria, may be considered on <br /> a case by case basis. <br /> c. TIF assistance will be provided to the developer upon receipt of the increment <br /> by the City, otherwise referred to as the pay-as-you-go method. Requests for <br /> up front financing will be considered on a case by case basis. <br /> d. A maximum of ten percent(10%)of any tax increment received from the <br /> district shall be retained by the City to reimburse administrative costs. <br /> e. Only for projects which supersede the objectives identified herein, will the term <br /> of the TIF assistance exceed 15 years. <br /> f. Any developer receiving TIF assistance shall provide a minimum of twenty <br /> percent(20%) cash equity investment in the project. TIF shall not be used to <br /> supplant cash equity. <br /> g. TIF will not be used in circumstances where land and/or property price is in <br /> excess of fair market value. An appraisal by a third party, agreed upon by the <br /> City and Developer, will determine the fair market value of the land. <br /> h. Developer shall be able to demonstrate a market demand for a proposed <br /> project. TIF shall not be used to support purely speculative projects. <br /> i. TIF will not be utilized in cases where it would create an unfair and significant <br /> competitive financial advantage over other projects in the area. <br /> f i rig stet - --- ---- -- Page 2 <br />