11-08-1999 EDA Minutes - Laserfiche WebLink

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EDA President Sullivan opened the public hearing at 6:19 p.m. George Knotek, 6108 Oakwood Lane, stated this legislation opens the process up for public involvement. He requested the city look at getting the maximum return for investment of public money. He noted that the city of Albert Lea spent public dollars to attract a business with low paying jobs. The wages were too low to attract local residents, and those who took the jobs were in need of public services because they were not paid a living wage. The city needs criteria that also protect existing business and addresses other job -related issues. Mr. Knotek added that businesses shop around for incentives, and Lino Lakes should not assume that it has to pay for business to come. Mr. Knotek presented options to amend the criteria and asked they be included in the record. The proposed amendments included: 1) Change the wage goals to "150% of the federal poverty level for a family of four, or 130% of the federal poverty level for a family of four if employer paid comprehensive health insurance is provided." 2) Adopt an overall goal that city residents hold 60% of the new jobs created each year under the business subsidy policy. 3) Adopt an overall goal that one living wage job be created per $35,000 of assistance granted. Donna Carlson, 6808 East Shadow Lake Drive, suggested the city take time to consider concerns over the wage and job goals. The city needs to ask if the business needs assistance. She doesn't want to cripple economic development, but the city needs to question whether a business needs assistance, if it competes with existing businesses, if it is sensitive to the environment, creates new jobs for local residents, and pays adequate wages and benefits. She cited a study that showed Lino Lakes low on the creation of jobs per amount of subsidy. She stated the city should raise the bar, although she believes most businesses are creating more jobs at higher wages than the report shows. EDA President Sullivan closed the public hearing at 6:37 p.m. Mr. Wessel stated that the city has criteria for selection of companies, although it is appropriate to review it. EDAC is discussing this issue and is looking at incentives at its December 2 meeting. Mr. Knotek was encouraged to come and participate. Ms. Sullivan stated that Lino Lakes has a good TIF policy and uses it conservatively. Companies must meet the "but for" test and other standards. Only industrial projects are granted TIF subsidies. Mr. Lyden said he'd like more public involvement and would like a standard that related the amount of TIF to the number of jobs created. Mr. Bergeson noted this is a requirement from the state to quantify the city's subsidy policy. The policy does not reflect the city's practice. He suggested passing the policy and improving and refining over time.