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September 9, 1999 <br /> <br />Jim Norman <br />City Administrator <br />City of Ramsey <br />15153 Nowthen Blvd. NW <br />Ramsey, MN 55303 <br /> <br />RE: NEW BUSINESS SUBSIDY LAW <br /> <br />Dear Jim: <br /> <br />As we have discussed, the 1999 Legislature passed into law new regulations relating to "business <br />subsidies". The 1999 Omnibus Tax Act contains new regulations applicable to state and local business <br />subsidies granted on or after August 1, 1999. Tax increment financing is included in the definition of <br />"business subsidy". <br /> <br />The new law requires that prior to awarding any business subsidy on or after August 1, grantors of <br />business subsidies must hold a public hearing and adopt criteria for awarding business subsidies. The <br />criteria must include a policy regarding the wages to be paid for any jobs created. Other than this locally <br />determined wage policy, the legislation does not specify what the criteria for awarding business subsidies <br />should contain. Rather than taking a one size fits all approach and prescribing a mandated set of criteria, <br />the legislation authorizes local decisionmakers to craft a set of criteria that takes into account their unique <br />set of circumstances. <br /> <br />Attached is a sample policy that I have draftec/for the City c~Ramsey. It is based on a similar policy <br />developed by Briggs and Morgan. The policy allows the city to h?.e maximum flexibility in terms of the <br />types of projects that can receive assistance. Each project will be evaluated on its own merits. Please <br />review the policy and I can make any changes you desire. A public heating must be scheduled and held <br />to adopt the policy prior to the approval of any development agreements for Tax Increment financing. I <br />would be happy to attend the hearing and address the council regarding this matter. <br /> <br />Best regards, <br /> <br />Michael J. Mulrooney ,[/ <br />Development Consultant~t <br /> / <br /> <br />Cc: C. Sherman <br /> <br />Development and <br /> Finance Experts <br /> <br />CORPORATE OFFICES: <br /> <br />P.O. Box 48269 <br />Mpls.. MN 55448-0269 <br />Phone: (612) 780-7900 <br />Fax: (612) 786-6606 <br /> <br />P.O. Box 3027 <br />Mankato, MN 56002-3027 <br />Phone: (507) 387-7117 <br />Fax: (507) 387-6115 <br /> <br /> <br />