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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY <br />AGENDA ITEM 3A <br /> <br /> <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br /> <br />MEETING DATE: June 13, 2016 <br /> <br />TOPIC: Public Hearing. Consider Resolution No. 16-03, Approving <br />Amended and Restated Business Subsidy Policy <br /> <br />VOTE REQUIRED: 3/5 <br /> <br /> <br />BACKGROUND <br /> <br />Before awarding any “business subsidy”, such as financial assistance through the use of Tax <br />Abatement or Tax Increment Financing, the City and EDA are required to adopt criteria <br />regarding such subsidies. Business subsidy criteria was originally adopted by the City in 2001 <br />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 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 /> <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 /> <br />The Economic Development Advisory Committee (EDAC) reviewed the policy at its June 2, <br />2016 meeting and recommended approval. The Lino Lakes City Council will hold a public <br />hearing on Monday, June 13, 2016 following EDA consideration. <br /> <br />RECOMMENDATION <br /> <br />Staff is recommending approval of Resolution No. 16-03. <br /> <br />ATTACHMENTS <br /> <br />1. Resolution No. 16-03 <br />2. Business Subsidy Policy