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15) Applicants seeking loans shall demonstrate that a local bank will provide at least 50% of the funds and agree to: a) share all underwriting information and, b) service both the bank and City loans. 16) The loan term shall be for no more than 8 years. The City interest rate shall be the City's average earned interest on investments for the previous 12 months. 17) Applications for loans shall use the City tax increment application form and shall include all bank loan application documentation. 18) Tax increment may be used for the following purposes: a) Replacement or cleanup of contaminated soils that would preclude development (as defined by the Minnesota Pollution Control Agency). b)Reclamation of existing urban area non-buildable soils. c) Replacement or correction of overburdened or aged City or County roads, sewers, or other public utilities, services, or parks which generally serve the proposed development site. d)Removal and/ox replacement of buildings and structures that are blighted, abandoned, or traffic obstructions in a project area where at least 50°/o of the buildings are substandard and require either substantial renovation or clearance. 'Blighted" structures shall be defined as structures which have a market value that is less than 50% of the average square foot market value (as determined by the current year's County Assessor's records) of structures within a 500 foot radius of the "blighted" structure. e) Construction subsidy of, or rent subsidy for, low income housing of all types. � Construction subsidies equivalent to up to ten (10) years property taxes for commercial, industrial, or multifamily structures which, because of their high quality materials, design, and construction, will have a construction value of at least 133% of the current year average building valuation for similar occupancies as published by the Minnesota Building Code Office. g)Public infrastructure projects of a local or regional nature (which are located in or cross through the city) that benefit the site or future development potential but are not normally financed through general property taxation. h)Other building, land, or infrastructure uses or improvements allowed within State Statutes 469.175 that are approved by the City Council during the proj ect review. Section 3- Tax Increment Funds and Policies All tax increment revenues, after annual debt service requirements and direct project commitments have been met will be deposited into the TAX INCREMENT FUND. An annual financial report shall be compiled in a manner as established by Minnesota State Statutes which will be made available publicly as well as filed with the Office of the State Auditor. In districts where increments have been generated and are not obligated to-pay-as you—go projects, debt repayment, or to other districts, the Council will evaluate overall financial policies to determine E