2003-084 Council Resolution - Laserfiche WebLink

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AGENDA ITEM 7E STAFF ORIGINATOR: Mary Alice Divine DATE: 06/09/03 TOPIC: Resolution No.03 -84 calling for a Public Hearing, Revision of Business Subsidy Criteria BACKGROUND: In 1999 the Minnesota State Legislature enacted a Business Subsidy Law that required grantors of business subsidies to adopt criteria for awarding business subsidies that comply with the state law. Both the City Council and the Economic Development Authority (EDA) have the authority to award business subsidies, and both adopted criteria in 1999. In 2000 the State Legislature revised the Business Subsidy Law, but delayed the effective date of the changes until 2003. The 1999 law required that criteria had to include provisions for wage and job goals that 1) stated the number of jobs to be created and 2) wage goals for the jobs created. A major change in the law now allows the grantor to set the number of new jobs at zero if the grantor, after a public hearing, determines that job creation is not the intent of the subsidy. Among other changes are the following: • Wage levels have to be specific, either in dollar amount or by reference to an index. • Criteria cannot be set on a case by case basis. New criteria are now needed to reflect the legislative changes. The attached resolution calls for a public hearing to consider the City Council's revised criteria on June 23, 2003. RECOMMENDATION: Adopt Resolution No. 03 -84 calling for a public hearing.