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Economic Development Consultant Mulrooney stated that the 1999 Legislature passed into law <br />new regulations relating to business subsidies which include Tax Increment Financing (TIF). <br />The regulations require that the City hold a public hearing and adopt criteria for awarding <br />business subsidies for any projects receiving assistance after August 1, 1999. <br /> <br />Mayor Gamec questioned if the Business Subsidy Policy had been reviewed by the City <br />Attorney. <br /> <br />Mr. Mulrooney replied yes. <br /> <br />Citizen Input <br /> <br />None. <br /> <br />Motion to by Councilmember Hendriksen, seconded by Councilmember Connolly, to close the <br />public hearing. <br /> <br />The public hearing closed at 7:30 p.m. <br /> <br />Motion can'ied. Voting Yes: Mayor Gamec, Councihnembers Hendriksen, Connolly, Anderson, <br />and Zimmerman. Voting No: None. <br /> <br />Council Business <br /> <br />Councihnember Anderson questioned the rationale of the policy. <br /> <br />Mr. Mulrooney stated that the Business Subsidy Policy was drafted to allow the Council some <br />flexibility as to the types of wages being paid and not be restricted by the type of project. The <br />policy is rather generic to allow the Council to make a decision on each individual project rather <br />then trying to make a project meet the requirements. <br /> <br />Councilmember Zimmerman referenced an article in "Governing Magazine" that stated TIF <br />Districts did not do much for the overall economy, tend to pay Iow wages, and the complexity of <br />the districts makes it only available to the largest developers. He suggested that the City should <br />not discriminate against small developers. <br /> <br />Mayor Garnet questioned if the legislature is trying to get away from TIF. <br /> <br />Mr. Mulrooney replied that every year the plan becomes more complex as an effort by the <br />Legislature to create higher salaried jobs. The effort in the future will be to simplify TIF, not <br />eliminate it. <br /> <br />Mayor Gamec inquired if the wording regarding small developers as stated by Councihnember <br />Zimmennan could be added to the Business Subsidy Policy or if should be brought back. <br /> <br />City Council/September 28, 1999 <br /> Page 5 of 26 <br /> <br /> <br />