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<br />WS – Item 8 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 8 <br /> <br /> <br />Date: June 6, 2016 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Community Development Director <br /> <br />Re: Business Subsidy Criteria Amendment <br /> <br /> <br />Background <br /> <br />Before awarding any “business subsidy”, such as financial assistance through the use of <br />Tax Abatement or Tax Increment Financing, the City is required to adopt criteria <br />regarding such subsidies. Business subsidy criteria was originally adopted by the City <br />Council in 2001 and revised in 2003. <br /> <br />The criteria are intended to set minimum requirements which recipients must meet to be <br />eligible to receive business subsidies. All business subsidy requests must comply with <br />the State’s Business Subsidy Act. A business subsidy must meet a public purpose such as <br />increasing the tax base. The requirements must include specific wage floor for the wages <br />to be paid for jobs created. <br /> <br />The majority of changes to the criteria include reference to both the City’s Economic <br />Development Authority (EDA) and the Business Subsidy Act. Section 3.02 was <br />modified to establish a minimum job creation of five (5) jobs. This provision may be <br />waived if, after a public hearing, it is determined that job creation or retention is not part <br />of the public purpose of the subsidy. <br /> <br />The Economic Development Advisory Committee (EDAC) will be reviewing the policy <br />at it’s June 2, 2016 meeting. Both the Lino Lakes EDA and the City Council will hold <br />public hearings on Monday, June 13, 2016 to consider adoption of the proposed <br />amendment. <br /> <br />Requested Council Direction <br /> <br />Staff is requesting City Council comments regarding the proposed business subsidy <br />changes. <br /> <br />Attachments <br /> <br />1. Redline Subsidy Criteria <br />2. MN Statutes Section 116J.993-995 <br /> <br />