Agenda - Council - 01/23/2007 - Laserfiche WebLink

Home

districts under M.S., Section 469.174. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocation administrative expenses of the City, including the cost of preparation of the development action response plan, may be included in the qualifying costs. Section 3.26 Economic Development or Job Growth~ Business Subsidies~ Reporting. To the extent applicable, the City agrees to comply with Minnesota Statutes, Sections 116J.993 to 116J.995, which states that a local unit of government granting financial assistance to a business for economic development or job growth purposes, including tax increment financing, must establish business subsidy criteria and approve a business subsidy agreement with the business receiving tax assistance. Minnesota Statutes, Section 116J.993 requires a city providing a business with a subsidy worth $25,000 to complete a subsidy approval process as described below. Housing projects and many redevelopment projects are exempt from the requirements. Before granting a business subsidy, the City must complete the following: (1) Adopt criteria for awarding business subsidies following a public hearing. (2) Enter into a subsidy agreement which must include the following information and requirements: (a) A description of the subsidy; (b) A statement of the public purpose and goals of the subsidy; (c) Measurable, specific, and tangible wage and job creation goals (or job retention goals, if job loss is specific and demonstrable) to be achieved within two (2) years of receiving the subsidy; (d) A description of the recipient's financial obligation if the goals are not met. The recipient must pay back the assistance with interest if goals are not met, although pro-ration to reflect partial fulfillment of goals is permitted. (e) . A statement of why the subsidy is needed. (f) A commitment from the recipient to continue operations in the jurisdiction for at least five (5) years; (g) The name and address of the parent company of the recipient; (h) A list of all other financial assistance to the project; and (i) A requirement for the recipient to provide the Authority and the Department of Employment and Economic Development with annual information 1971165v3 15 -236-