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CITY COUNCIL <br />AGENDA ITEM 6C <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />MEETING DATE: June 13, 2016 <br />TOPIC: Public Hearing. Consider Resolution No. 16-54, Approving <br />Amended and Restated Business Subsidy Policy <br />VOTE REQUIRED: 3/5 <br />INTRODUCTION <br />Staff is requesting City Council consideration to approve amendments to the City's Business <br />Subsidy Policy <br />BACKGROUND <br />Before awarding any "business subsidy", such as financial assistance through the use of Tax <br />Abatement or Tax Increment Financing, the City is required to adopt criteria regarding such <br />subsidies. Business subsidy criteria was originally adopted by the City in 2001 and revised in <br />2003. <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 the <br />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 to be <br />paid for jobs created. <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 modified to <br />establish a minimum job creation of five (5) jobs. This provision may be waived if, after a <br />public hearing, it is determined that job creation or retention is not part of the public purpose of <br />the subsidy. <br />The Economic Development Advisory Committee (EDAC) reviewed the policy at its June 2, <br />2016 meeting and recommended approval. The Lino Lakes EDA will hold a public hearing on <br />Monday, June 13, 2016 prior to council consideration. <br />RECOMMENDATION <br />Staff is recommending approval of Resolution No. 16-54. <br />ATTACHMENTS <br />1. Resolution No. 16-54 <br />2. Business Subsidy Policy <br />