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• AGENDA ITEM 6C • • STAFF ORIGINATOR: DATE: TOPIC: Vote Required: BACKGROUND: Mary Alice Divine 02/28/05 Resolution No. 05 -14 approving a Business Subsidy for Schwan's Home Service, Inc. Simple Majority Schwan's Home Service, Inc. has made a request for tax increment financing on to relocate their warehouse /distribution facility that is currently on Lake to the Marshan Industrial Park. The company has committed to hiring at least six (6) new employees within two years at no less than $9.00 per hour, plus benefits. Based on an analysis of information provided by Schwan's, staff and the city's TIF consultant recommend providing five years of increment for a total amount of $91,715. Business Subsidy Criteria have been established by the city for use in evaluating a request for a business subsidy. The criteria used in evaluating a request for a business subsidy include: 1. The business subsidy meets a public purpose, including but not limited to increasing the tax base. 2. While an increase in the tax base cannot be the sole rounds for granting a subsidy, the city believes it is a necessary condition for any subsidy. 3. The recipient creates the maximum number of livable wage jobs at the site. 4. Projects of this type should promote economic and commercial diversity within the community, contribute to the establishment of a critical mass of commercial development within an area, promote redevelopment objectives and removal of blight, or encourage full utilization of existing or planned infrastructure improvements. The city's Economic Development Advisory Committee (EDAC) has supported the project, since it met the necessary subsidy criteria, building standards and zoning codes. A public hearing was held earlier tonight during the meeting of the Economic Development Authority (EDA) and the EDA considered the business subsidy. The city also considers and acts on any business subsidy that is considered by the EDA.