08/11/2003 Council Packet - Laserfiche WebLink

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45 • 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 • EDA MINUTES DRAFT C. Official Depositories JUNE 23, 2003 Ms. Divine advised the list of legal depositories approved for 2002 by the City Council were as follows: Wells Fargo First Bank, NA US Bank Dain Rauscher Lino Lakes State Bank Others as needed Prudential Bache Community National Bank Merrill Lynch Solomon, Smith, Barney LMC 4M Fund Ms. Divine indicated these depositories are used for checking, savings and investing City dollars. On occasion the EDA and the City have financial transactions that will require the EDA to have designated legal depositories. She advised that staff recommends approval of the list of legal depositories. EDA Member O'Donnell moved to approve the list of legal depositories, as approved for 2003 by the City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. CONSIDERATION OF RESOLUTION NO. 03-01, ADOPTING REVISED BUSINESS SUBSIDY CRITERIA Ms. Divine advised that the Business Subsidy Act became effective on August 1, 1999, and required grantors to adopt business subsidy criteria prior to granting business subsidies. She explained that recognizing not all subsidies were for the purpose of creating jobs, the Minnesota Legislature amended the Act in 2000, but delayed the effective date of those changes until 2003. She reviewed the changes being proposed. EDA President Carlson asked about the ability for businesses to move before five years has passed. Ms. Divine indicated it was a requirement that all businesses stay in the jurisdiction for five years, however the law has been revised to say that the grantor, being the City, can allow them to leave early. EDA President Carlson stated if businesses are required to stay five years it gives the City the ability to regain some taxes in reimbursement for the subsidy, and she questioned why they would want to allow businesses to leave before the five years was up. Ms. Divine indicated you usually would not want to, and the City can require in their agreement that the business stay for five years, but this gives the City an out if for some reason they feel it best to allow the business to leave. EDA President Carlson asked if this could be covered in the previous item concerning the ability to deviate from the criteria. Ms. Divine stated she would be more comfortable leaving the specific language received from the Legislature.