08-11-2003 EDA Packet - Laserfiche WebLink

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EDA MINUTES JUNE 23, 2003 DRAFT 89 EDA President Carlson noted that the language concerning the five-year requirement has been added 90 to Section 2.03 and has been struck from Section 5 as previously written. She asked if that change 91 was for a specific reason, and if they could instead have the language in both sections. Ms. Divine 92 indicated Section 2.03 refers to specific Development Agreements. She noted any subsidy granted by 93 the EDA must also be approved by the City Council. She believes the language change was just the 94 TIFAttorney's way of making if specific. She added that in the past, the Development Agreement 95 was only approved by the EDA, and the actual subsidy was approved by both entities. She stated if 96 members prefer, the language can include that both entities approve the five-year requirement. 97 98 EDA Member Dahl stated she would be more comfortable if the language was in both sections. EDA 99 Member Bergeson asked where the strikeouts in the proposed criteria came to be. Ms. Divine stated 100 they were edited by the city's TIF Attorney. EDA Member Bergeson suggested they put the language 101 in both sections subject to consulting with the TIF Attorney. 102 103 EDA Member Bergeson asked about zero job creation. Ms. Divine indicated that this would be 104 reviewed on a case -by -case basis. She advised each time the City gives a subsidy they have to decide 105 why they are doing it, whether to improve the tax base, utilize existing infrastructure, implement the 106 Comprehensive Plan, or wage and job goals. She stated some cities were having trouble justifying the 107 job goals, when the real reason for the subsidy may have been for other reasons, such as improving 108 the tax base. This gives cities the ability to have wage and job goals, but does not require that they 109 have them if the main goal is some other reason. 110 111 EDA Member Reinert moved to open the public hearing at 6:23 p.m. EDA Member Dahl seconded 112 the motion. Motion carried unanimously. 113 114 EDA Member Dahl moved to close the public hearing at 6:23 p.m. EDA Member O'Donnell 115 seconded the motion. Motion carried unanimously. 116 117 EDA Member Bergeson moved to adopt Resolution No. 03-01 approving the revised Business 118 Subsidy Criteria as outlined by staff, restoring the previously struck -out portion of Section 5.01. 119 EDA Member O'Donnell seconded the motion. 120 121 EDA Member Dahl asked if it was correct that the number of new jobs could start at zero, but could 122 be a requirement as in the past. Ms. Divine indicated that was correct, the City can choose. EDA 123 Member Reinert stated this does not take away any of the City's authority, it only gives them more 124 options. 125 126 EDA President Carlson noted she has been in favor of wage and job goals since before she was on the 127 City Council, and she also has a concern about businesses not staying in the City for five years after 128 receiving a subsidy. 129 130 EDA Member Dahl asked for more explanation about the ability of a business to move before the five 131 years was over. Ms. Divine stated if the EDA holds a public hearing and decides they want to release 132 a business from that requirement, they have the authority to do so. She indicated it gives the EDA the 133 option of releasing the business from its agreement if it seems a reasonable thing to do. 3