11-08-1999 EDA Packet - Laserfiche WebLink

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(4) Hold a public hearing on the subsidy if it exceeds $100,000 (or, if the grantor is the state government, $500,000). The statutes contains specific criteria for the notice of hearing. The notice must be published at least 10 days prior to the hearing. What is a business subsidy? The statute is important for both the definition and the specific exclusions. Business subsidy are defined as "grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business". The statute specifically excludes certain items from the definition. The following are not business subsidies: . • . • business subsidy of less than $25,000. assistance generally available to all business or to a similar class of business. public improvements to buildings or land owned by state or local government that serve a public purpose and do not principally benefit a single business or a defined group of businesses at the time the improvements are made. polluted redevelopment property (M.S. 116J.552) renovating old or decaying building stock or bringing it up to code if not more than 50% of the total cost. assistance to job training/readiness organizations to assist with those services. housing. pollution control or abatement. energy conservation. tax reduction from conformity with federal tax law. workers and unemployment compensation. benefits derived from regulations. funds from bonds allocated under Chapter 474A. collaboration between Minnesota higher education institution and a business. soils condition TIF district. redevelopment when recipient's investment in the purchase of the site is 70% or more of the current assessor's estimated market value. general changes in TIF law and other general tax law for a principally technical nature. Reporting The statute establishes a set of subsidy reporting procedures. The recipient of the assistance is required to provide information to the grantor for two years after the benefits date or until the goals are met, whichever is later. The information shall be reported on forms developed by DTED. The statute creates penalties for failure to provide the appropriate reports.