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0 0 <br />LEAGUE OF <br />MINNESOTA <br />CITIES <br />HANDBOOK FOR MINNESOTA CITIES <br />Chapter 15 <br />Community Development and <br />Redevelopment <br />Learn about the requirements for a city to establish criteria for awarding business subsidies and <br />various development agencies cities may create. Find an overview of state and federally sponsored <br />programs for encouraging development and redevelopment. Most economic development tools can <br />be applied to any size city. These tools are interrelated, and a city may use several for one project. <br />RELEVANT LINKS: <br />Minn. Stat. §§ 116J.993 to <br />116J.995. <br />Minn. Stat. § 116J.993, subd. <br />3. <br />Minn. Stat. § 116J.994, <br />subds. 5, 11. <br />Minnesota Department of <br />Employment and Economic <br />Development (DEED). <br />Minn. Stat. § 116J.994, subd. <br />3. <br />I. Business subsidies or financial assistance <br />A. Business subsidies <br />State law defines "business subsidy" or "subsidy." It is a state or local <br />government agency grant, contribution of personal property, real property, <br />infrastructure, or the principal amount of a loan at rates below those <br />commercially available to the recipient. In addition, a business subsidy is <br />any reduction or deferral of any tax or any fee, any guarantee of any <br />payment under any loan, lease, or other obligation, or any preferential use <br />of government facilities given to a business in an amount greater than <br />$150,000. <br />Prior to awarding a business subsidy of more than $150,000 (and as <br />defined by law) to any business, a city and any Housing and <br />Redevelopment Authority (HRA), Economic Development Authority <br />(EDA), port authority, and nonprofit created by a local government must <br />hold a public hearing and adopt criteria for awarding business subsidies. <br />The public hearing notice must include a statement that either a resident or <br />a city property owner may file a written complaint with the city if the city <br />does not follow the business subsidy law. Written complaints must be filed <br />within specified timelines. The criteria must include a policy regarding the <br />wages to be paid for any jobs created. Copies of the criteria adopted by <br />cities are found on the Minnesota Department of Employment and <br />Economic Development (DEED) web site. <br />Once the criteria are established, the grantor and the recipient must enter <br />into subsidy agreements that meet the statutory requirements. The <br />agreement must include an obligation to repay part or the entire subsidy if <br />the recipient does not meet its obligations. <br />This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. <br />145 University Ave. West <br />Saint Paul, MN 55103-2044 <br />www.lmc.org <br />(651) 281-1200 or (800) 925-1122 <br />11/4/2014 <br />© 2014 All Rights Reserved <br />