06/02/2016 EDAC Packet - Laserfiche WebLink

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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: June 2, 2016 REQUEST: Consideration of Business Subsidy Criteria BACKGROUND Before awarding any "business subsidy", such as financial assistance through the use of Tax Abatement or Tax Increment Financing the City is required to adopt criteria for regarding such subsidies. Business subsidy criteria was originally adopted in 2001 and revised in 2003. The criteria are intended to set minimum requirements which recipients must meet to be eligible to receive business subsidies. All business subsidy requests must comply with the State's Business Subsidy Act. A business subsidy must meet a public purpose such as increasing the tax base. The requirements must include specific wage floor for the wages to be paid for jobs created. Many of the wording changes are minor language updates such as adding EDA to existing fragments and complying with updated MN Statutes. In the Lino Lakes Business Subsidy Criteria, under Section 3.02 (c) Jobs and Wages, there should be a discussion on the minimum number of jobs a recipient is required to create. The majority of changes to the criteria include reference to both the City's Economic Development Authority (EDA) and the Business Subsidy Act. Section 3.02 was modified to establish a minimum job creation of five (5) jobs. This provision may be waived if, after a public hearing, it is determined that job creation or retention is not part of the public purpose of the subsidy. Both the Lino Lakes EDA and the City Council will hold a public hearing on Monday, June 13, 2016 and consider adoption of the proposed amendment. EDAC CONSIDERATION Staff is requesting EDAC discussion and recommendation regarding the proposed business subsidy changes. ATTACHMENTS 1. Redline Subsidy Criteria 2. MN Statutes Section 116J.993-995