Agenda - Economic Development Authority - 11/13/2008

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:';'_'.";_::...;.'~_:':' .- _ ,;.,__,.~-:-:-O-.:'.-~' .-, _ij:;:;:'-;::~~~.:.Z-.;.:::::""-'.~_~_:"'-;':'~--""---"------- 1 :MINNESOTA STATUTES 2008 116J.994 116J.994 REGULATING LOCAL AND STATE BUSINESS SUBSIDIES. Subdivision 1. Public purpose. A business subsidy must meet a public purpose which may include, but may not be limited to, increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is specific and demonstrable. Subd. 2. Developing a set of criteria. A business subsidy may not be granted until the grantor has adopted criteria after a public hearing for awarding business subsidies that comply with this section. The criteria may not be adopted on a case-by-case basis. The criteria must set specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies. The criteria must include a specific wage floor for the wages to be paid for the jobs created. The wage fioormay be stated as a specific dollar amount or may be stated as a formula thatwill generate a ,specific dollar amount. A grantor may deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the department. The commissioner of employment and economic _ development may assist local government agencies in developing criteria. A copy of the criteria must be submitted to the Department of Employment and Economic Development along with the first annual report following the enactment of this section or with the first annual report after it has adopted criteria, whichever is earlier. Notwithstanding section 116J.993, subdivision 3, clauses (1) and (21), for the purpose of this subdivision, "business subsidies" as defined under section 116J.993 includes the following forms offinancial assistance: (p a business subsidy of $25,000 or more; and_ (2) business loans and guarantees of $75,000 or more. Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with the grantor of the subsidy that includes: (1) a description of the subsidy, including the amount and type of subsidy,. and type of district if the subsidy is tax increment financing; (2) a statemel).t of the public purposes-for the subsidy; (3) measurable, specific, and tangible goals for the subsidy; (4) a description of the financial obligation of the recipient if the goals are not met; (5) a statement of why the subsidy is needed; (6) a commitment to continue operations in the jurisdiction where the subsidy is used for at - least five years after the benefit date; (7) the name and address of the parent corporation of the recipient, if any; and Copyright (l::J 2008 by the Revisor of Statutes, State of Minnesota All Rights Reserved. 31