06-13-2016 EDA Packet - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: June 13, 2016 TOPIC: Public Hearing. Consider Resolution No. 16-03, Approving Amended and Restated Business Subsidy Policy VOTE REQUIRED: 3/5 BACKGROUND Before awarding any “business subsidy”, such as financial assistance through the use of Tax Abatement or Tax Increment Financing, the City and EDA are required to adopt criteria regarding such subsidies. Business subsidy criteria was originally adopted by the City in 2001 and revised in 2003. The criteria are intended to set minimum requirements which recipients must meet to be eligible to receive business subsidies. All business subsidy requests must comply with the State’s Business Subsidy Act. A business subsidy must meet a public purpose such as increasing the tax base. The requirements must include specific wage floor for the wages to be paid for jobs created. The majority of changes to the criteria include reference to both the City’s Economic Development Authority (EDA) and the Business Subsidy Act. Section 3.02 was modified to establish a minimum job creation of five (5) jobs. This provision may be waived if, after a public hearing, it is determined that job creation or retention is not part of the public purpose of the subsidy. The Economic Development Advisory Committee (EDAC) reviewed the policy at its June 2, 2016 meeting and recommended approval. The Lino Lakes City Council will hold a public hearing on Monday, June 13, 2016 following EDA consideration. RECOMMENDATION Staff is recommending approval of Resolution No. 16-03. ATTACHMENTS 1. Resolution No. 16-03 2. Business Subsidy Policy