Agenda - Economic Development Authority - 04/14/2011 - Joint Meeting

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City and EDA of Ramsey Business Subsidy Policy i 1. City and EDA of Ramsey Business Subsidy Policy The following business subsidy criteria are intended to satisfy the requirements of Minnesota Statutes, §§116J.993 through 116J.995 (the "Act "). The term "City" means the City of Ramsey. The term "project" means the property with respect to which the business subsidy is provided. A. MANDATORY CRITERIA All projects must comply with the following criteria: 1. But For Test. There is a substantial likelihood that the project would not go forward without the business subsidy. 2. Wage Policy. If the project results in the creation of any jobs, the wage for each part-time and full -time job created must be, within two years of the date assistance is received (as defined in the Act), at least equal to 70% of the most recent median wage figure for the Twin City 7 County Metro County as published by the Minnesota Department of Employment and Economic Development or such greater amount as the City may require for a specific project. 3. Economic Feasibility. The recipient must demonstrate to the satisfaction of the City that it has adequate financing for the project and that the project will be completed in a timely fashion. 4. Compliance with Act. The business subsidy from the City must satisfy all requirements of the Act. 5. Minimum Subsidy Amount: Financial assistance in the form of a business subsidy of $25,000 or more; and business loans and guarantees of $75,000, must be reported to the Department of Employment and Economic Development. A public hearing is only required if the business subsidy is greater than $150,000. B. POLICY 1. The City recognizes that the creation of good paying jobs is a desirable goal which benefits the community. Nevertheless, not all projects assisted with subsidies derive their public purposes and importance solely by virtue of job creation. In addition, the imposition of high job creation requirements and high wage level requirements may be unrealistic and counter - productive in the face of larger economic forces of influence and the financial and competitive circumstances of an individual business. In determining the requirements for a project under consideration for a business subsidy, the determination of the number of jobs to be created and the wage levels therefore will be guided by the following principles and criteria: The Economic Development Authority and City of Ramsey, Minnesota. Policies.