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EDA MINUTES JUNE 23, 2003 <br />DRAFT <br />C. Official Depositories <br />Ms. Divine advised the list of legal depositories approved for 2002 by the City Council were as <br />follows: <br />Wells Fargo <br />First Bank, NA <br />US Bank <br />Dain Rauscher <br />Lino Lakes State Bank <br />Others as needed <br />Prudential Bache <br />Community National Bank <br />Merrill Lynch <br />Solomon, Smith, Barney <br />LMC 4M Fund <br />Ms. Divine indicated these depositories are used for checking, savings and investing City dollars. On <br />occasion the EDA and the City have financial transactions that will require the EDA to have <br />designated legal depositories. She advised that staff recommends approval of the list of legal <br />depositories. <br />EDA Member O'Donnell moved to approve the list of legal depositories, as approved for 2003 by the <br />City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. <br />CONSIDERATION OF RESOLUTION NO. 03-01, ADOPTING REVISED BUSINESS <br />SUBSIDY CRITERIA <br />Ms. Divine advised that the Business Subsidy Act became effective on August 1, 1999, and required <br />grantors to adopt business subsidy criteria prior to granting business subsidies. She explained that <br />recognizing not all subsidies were for the purpose of creating jobs, the Minnesota Legislature <br />amended the Act in 2000, but delayed the effective date of those changes until 2003. She reviewed <br />the changes being proposed. <br />EDA President Carlson asked about the ability for businesses to move before five years has passed. <br />Ms. Divine indicated it was a requirement that all businesses stay in the jurisdiction for five years, <br />however the law has been revised to say that the grantor, being the City, can allow them to leave <br />early. <br />EDA President Carlson stated if businesses are required to stay five years it gives the City the ability <br />to regain some taxes in reimbursement for the subsidy, and she questioned why they would want to <br />allow businesses to leave before the five years was up. Ms. Divine indicated you usually would not <br />want to, and the City can require in their agreement that the business stay for five years, but this gives <br />the City an out if for some reason they feel it best to allow the business to leave. <br />EDA President Carlson asked if this could be covered in the previous item concerning the ability to <br />deviate from the criteria. Ms. Divine stated she would be more comfortable leaving the specific <br />language received from the Legislature. <br />2 <br />