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DATE: MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES Monday, November 8, 1999 K. Sullivan, J. Bergeson, C. Dahl, C. Lyden, A. Neal Brian Wessel, Mary Divine, Ron Batty CONSIDERATION OF MINUTES EDA Member Neal moved to approve the minutes from the April 12, 1999 EDA meeting. EDA Member Bergeson seconded the motion. Motion passed unanimously. PUBLIC HEARING: ADOPTION OF BUSINESS SUBSIDY CRITERIA Mr. Batty explained to the EDA that this criteria was a requirement under a legislative change to regulate subsidies. Any entity granting a subsidy must adopt a criteria. The criteria presented tonight are in outline document that provides flexibility. The legislation states that creating tax base cannot be the only criteria for providing subsidies, but that wages and jobs must be created. The legislation also requires that a public hearing be held for any subsidy over $100,000, and the city council must approve the subsidy. This criteria is not contractual, and does not obligate the EDA in any way to providing subsidies. Mr. Batty stated that this criteria calls for jobs being created to be at 110% of the federal minimum wage, plus benefits. There is no requirement for a particular number of jobs or wage. Each subsidy would be subject to negotiation over jobs and wages, and requires EDA and council approval. Mr. Bergeson asked if this was minimally adequate to meet the statute, and what meaning did it have at this minimal requirement. Mr. Batty replied this criteria reflects the intent of the statute and reminds local governments of what touchstones they need to consider when granting subsidies. Most cities are adopting similar criteria. This is a general policy, and the intent is to react to specific subsidy requests based on the goals of the city. Mr. Lyden questioned the true spirit of the law, and why standards are being legislated. Mr. Batty replied that this statute reflects the differing opinions at the legislature over what should be required. No consensus has ever been reached over whether wage and job goals should be mandated. This is a compromise. Since economic development is related to tax base in many cities, the wages are generally an add -on. This legislation asks that cities need to think more broadly.