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N'. The project shall enhance adjoining properties and create opportunities for further development. When an environmental problem exists within a proposed project the developer shall reduce, correct, or eliminate said problem(s) on the site. G. The project shall be compatible with the adjacent and nearby land uses, and shall be consistent with the City's Comprehensive Plan and zoning regulations. H. The quality of the proposed building and site improvements shall meet or exceed City standards. L Project finaztcing utilizing TIF shall consider alternative equity sources, the barriers to private sector involvement which make necessary the use of TIP, and the project and financial guarantees which protect the City's investment. J. Incentives may be in the form of loans, repayable to the City for other economic development activities. Such incentives may be used by the City to adequately compete with other communities to retain and/or expand head of household jobs when growth requires a building expansion or plant and equipment update. Loans may only be considered as an incentive if tax increment is insufficient to create adequate tax increment to support the project and shall demonstrate and provide surety and security as described in Subsection I. above. ii. 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. m. 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. iv. Applications for loans shall use the City taY increment application form and shall include all bank loan application documentaYion. K. Tax increment may be used for the following purposes: Replacement or cleanup of contaminated soils that would preclude development (as defined by the Minnesota Pollution Control Agency). ii. Reclamation of existing urban area unbuildable soils in. 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. iv. Removal and/or replacement of buildings and structures that are blighted, abandoned, or tra�c obstructions in a project area where at least 50% of the buildings are substandard and require either substantial renovation or clearance. `Blighted" structures shall be detined 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. v. Construction subsidy of, or rent subsidy for, low income housing of all types. vl. Construction subsidies equivalent to up to ten'( 10) years property taYes 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. vii. 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 taYation. �in. Other building, land, or infrastructure uses or improvements allowed within State StaYutes 469.175 that are approved by the City Council during the project 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 FLTND. An annual financial renort shall be comviled in a manner as established bv Minnesota State Statutes which will be made available nubliclv as well as filed with the Office of the State Auditor.. In districts where increments have been generated and are not obligated to-oav-as vou—eo nroiect�, debtrevavment_or to other districts, the Council will evaluate overall financial policies to determine the arlvance navment �f outstandin¢ debt district clns�ire nr the �ise nf the funds fnr allnwahle proiects.