Agenda - Council - 04/14/2011 - Joint with EDA

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City and EDA of Ramsey Business Subsidy Policy 2 a. The evaluation of projects will take into consideration the project's importance in and benefit to the community from all perspectives, including created or retained jobs. b. If a particular project does not involve the creation of jobs, but is nonetheless found to be worthy of support and subsidy, assistance may be approved without any specific job or wage goals if permitted by applicable law. c. In cases where the objective is the retention of existing jobs, the recipient of the subsidy will be required to provide evidence which demonstrates that the loss of those jobs is specific and demonstrable. d. The setting of wage and job goals will be informed by (i) prevailing wage rates, (ii) local economic conditions, (iii) external economic forces over which neither the City nor the recipient of the subsidy has control, (iv) the financial resources of the recipient and (v) the competitive environment in which the recipient's business exists. 2. Because it is not possible to anticipate all the needs and requirements of every type of project and the ever - changing needs of the community and in order to retain the flexibility necessary to respond to all proposed projects, the City retains the right to approve projects and business subsidies which may vary from the principles and criteria set forth herein. C. PROJECT EVALUATION CRITERIA The project review and evaluation criteria are the following: 1. Jobs and Wages a. New Jobs The minimum net number of direct full time equivalent jobs to be created or retained by the proposed project for a period of at least two years from the estimated benefit date. b. Payrol The minimum annual net payroll (including employer contributions for health benefits) to be generated at the end of the second anniversary date of the estimated benefit date. 2. Tax Base a. Increase in Tax Base The net increase in property taxes estimated to be generated by the project in the second full year of operation. The Economic Development Authority and City of Ramsey, Minnesota. Policies.