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rote <br /> HANDBOOK FOR MINNESOTA CITIES <br /> LEAGUE OF <br /> MINNESOTA Chapter 15 <br /> CITIES 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: 1. Business subsidies or financial assistance <br /> A. Business subsidies <br /> Minn.stat.§§1161993 to State law defines "business subsidy" or"subsidy." It is a state or local <br /> 1161995. <br /> Minn.stat.§1161.993,subd. government agency grant, contribution of personal property, real property, <br /> 3. 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 /> Minn.stat.§1161.994, Prior to awarding a business subsidy of more than $150,000 (and as <br /> subds.5,11. <br /> Minnesota Department of defined by law)to any business, a city and any Housing and <br /> Employment and Economic Redevelopment Authority (HRA), Economic Development Authority <br /> Development(DEED). <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 /> Minn.stat.§1161.994,subs. Once the criteria are established, the grantor and the recipient must enter <br /> 3. <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 www.Imc.org 11/4/2014 <br /> Saint Paul,MN 55103-2044 (651)281-1200 or(800)925-1122 ©2014 All Rights Reserved <br />