08-11-2003 EDA Packet - Laserfiche WebLink

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EDA MINUTES JUNE 23, 2003 DRAFT 134 135 EDA Member Dahl asked if the language could say the business can move but they are still 136 responsible for the subsidy. EDA Member Dahl stated it seems like they are letting the business go if 137 they say they cannot pay and they want to leave. Ms. Divine indicated that the city does not continue 138 to pay a subsidy after the business has left. Ms. Divine indicated the City could find the business in 139 default of its agreement if the business left the city. 140 141 EDA Member Reinert commented that this change is an option for the EDA, not a loophole for 142 businesses. He noted the EDA would have to release the business from their obligation, and at that 143 time the EDA could put a stipulation on the release. Ms. Divine suggested that in the Development 144 Agreement they could put such a stipulation. She noted this is general criteria of what is allowed by 145 statute. 146 147 EDA Member Bergeson stated he would speak in favor of leaving the language as drafted, since it 148 mirrors what is in the law, and there may be cases where the City would want to allow movement. 149 For instance, if there is a small business on a large parcel that would be better suited for the 150 community with a different use; the City may want the option to allow the business to move. 151 152 EDA Member O'Donnell concurred, noting this allows the City flexibility. 153 154 Motion carried. EDA President Carlson opposed. 155 156 CONSIDERATION OF RESOLUTION 03-02, EXTENDING THE COMPLIANCE DATE 157 FOR THE WAGE AND JOB GOALS FOR MARMON/KEYSTONE 158 159 Ms. Divine summarized her report, indicating the EDA may, after a public hearing, extend the 160 compliance date by up to one year, as requested. If Marmon/Keystone is not given an extension, the 161 tax increment financing would be withheld according to a formula that is based on a pro rata share of 162 the number of jobs created versus the number required. 163 164 EDA Member Dahl asked how many extensions are allowed if the goal is not met by June 1, 2004. 165 Ms. Divine stated this is the only extension that could be granted. She indicated if the goal is not met 166 by then, the Development Agreement states options the EDA could take at that time. 167 168 EDA Member Dahl asked if Marmon/Keystone is aware they would be saving themselves $175,000 if 169 they met the goal. Ms. Divine indicated she has had that discussion with them. 170 171 EDA Member Reinert moved to open the public hearing at 6:37 p.m. EDA Member O'Donnell 172 seconded the motion. Motion carried unanimously. 173 174 EDA Member Dahl moved to close the public hearing at 6:37 p.m. EDA Member O'Donnell 175 seconded the motion. Motion carried unanimously. 176 4