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JUN. 6. 2001 �: 42PM EHLERS& ASSOCIATES NO. 4491 � . 10 E. Business subsidy requests should normally not be used to support speculative industrial, commercial,and office projects.In general,speculative projects are defined as those projects which have letters of intent or pre-leasing for less than 50%of the available leasable space. F. All business subsidy requests will be reviewed to determine the feasibility to provide the City with equity participation in new developments(through a share of the profits),or to treat the business subsidy as a second mortgage with fixed payments. G. All business subsidy requests involving displacement of low and moderate income residents should give specific attention to the re-housing needs of those residents.Normally,this should be done as a part of the business subsidy. Adequate solutions to these re-housing needs will be required as a matter of public policy. H. Business subsidy requests will normally not be used in a project that involves an excessive land and/or property price.This will normally be where the acquisition price is more that 10% in excess of market value. i. All business subsidy requests will need to meet the"but for"test. Business subsidies will not be granted unless the need for the City's economic participation is sufficient that,without that assistance the project could not proceed in the manner as proposed. J. Business subsidies will not be used in projects that would give a significant,competitive financial advantage over similar projects in the area due to the use of business subsidies. K. Business subsidies will not be used when the developer's credentials, in the sole judgement of the City,are inadequate due to past track record relating to:completion of projects,general reputation and/or bankruptcy, or other problems or issues considered relevant by the City. L. Business subsidies will not be used to support projects that place demands on City services, or other capital or operating expenditures,that exceed the average city expenditures for similar facilities.Consideration will be given to the total public costs that are required to support the project, including offsite facilities costs that are required. M. Business subsidies will not normally be used for projects that would generate significant environmental problems in the opinion of the local, state,or federal governments. N. Business subsidies will not be used when the schedule for development has exceeded the schedule established in the development agreement, and where the City has not agreed to extensions of that schedule. O. Business subsidies should not be provided to those projects that fail to meet good public policy criteria as determined by the Council,including:poor project quality;projects that are not in accord with the comprehensive plan., zoning,redevelopment plans,and city policies; projects that provide no significant improvement to surrounding land uses,the neighborhood, and/or the City;projects that do not provide a significant increase in tax base;projects that do not have significant new, or retained, employment; projects that do not meet financial feasibility criteria established by the City;and projects that do not provide the highest and best desired use for the property.