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RELEVANT LINKS: <br />Minn. Stat. § 116J.993, subd. <br />3. <br />Minn. Stat. § 469.185. <br />Minn. Stat. § 116J.994, subd. <br />11. <br />Minn. Stat. § 116J.993, subd. <br />3. <br />Minn. Stat. § 116J.994, <br />subds. 4, 7, 8. <br />Minn. Stat. § 116J.994, subd. <br />2. Minn. Stat. § 116J.994, <br />subd. 8. <br />Types of assistance meeting the definition of a business subsidy include: <br />grants; contributions of real or personal property or infrastructure; the <br />principal amount of a loan at rates below those commercially available to <br />the recipient; any reduction or deferral of any tax or any fee; any guarantee <br />of any payment under any loan, lease or other obligation; or any <br />preferential use of government facilities given to a business. <br />The law imposes a 180 -day statute of limitations on actions to challenge a <br />city after approval of a business subsidy agreement. Citizens or owners of <br />taxable property in a city may bring a civil action against the city for <br />failure to comply with the business subsidy laws. Cities should therefore <br />consult closely with the city attorney before awarding a business subsidy. <br />There are several exceptions to this definition, including a subsidy of less <br />than $150,000; subsidies for redevelopment, pollution control and land <br />clean up, housing, industrial revenue bonds, utility property tax <br />abatements and other similar programs. <br />Recipients must provide grantors with information on their progress <br />toward the goals outlined in the agreement. The goals for increasing jobs <br />or retaining jobs must result in local job creation and job retention. <br />Grantors must submit the annual Minnesota Business Assistance Form <br />(MBAF) to the Department of Employment and Economic Development <br />(DEED) by April 1 each year for each business subsidy agreement. Local <br />government agencies in cities with a population of 2,500 or more must <br />submit an MBAF, regardless of whether they have awarded business <br />subsidies. Local government agencies in cities with a population of 2,500 <br />or less are exempt from filing the MBAF if they have not awarded a <br />subsidy in the past five years. <br />B. Financial assistance <br />Cities may offer "financial assistance" in the form of a business loan of <br />more than $25,000 or a guarantee of $75,000 or more, but less than <br />$150,000 required to constitute a business subsidy. If a city offers such <br />financial assistance it must develop criteria and set minimum wage floor <br />levels as prescribed in business subsidy law. Cities granting such financial <br />assistance must submit business assistance reports to the Department of <br />Employment and Economic Development (DEED) within one year of <br />granting the assistance. <br />League of Minnesota Cities Handbook for Minnesota Cities 11/4/2014 <br />Community Development and Redevelopment Chapter 151 Page 4 <br />