05/29/2001 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES MAY 29, 2001 • Mr. Vicker briefly reviewed the 2000 Annual Audit Reports noting that staff is recommending the City Council formally, by motion, accept the 2000 Annual Audit Report. • • Council Member O'Donnell moved to accept the 2000 Annual Audit Report, as presented. Council Member Carlson seconded the motion. Motion carried unanimously. Resolution No. 01— 73, Calling for a Public Hearing on a Business Subsidy Policy and Authorizing Staff to Draft a Business Subsidy Policy — Finance Director Rolek advised the Minnesota Business Subsidy Law requires that any local government agency with the power to grant a business subsidy must first establish a Business Subsidy policy. This policy lists the criteria that will be used to determine if a subsidy meets a public purpose. The criteria must also establish a policy for wages on jobs created by the subsidies. The term "business subsidy" can include a grant such as tax increment financing or tax abatement, contribution of property or infrastructure, low-interest rate loans, tax . e deferrals, or any preferential use of government facilities given to a business. Any . �.Q tribution in excess of $25,000 is considered a subsidy. A public hearing is required to take public comment befo No. 01— 73 sets a hearing for 6:30 p.m. on July 23, 2011, Policy for consideration. of the policy. Resolution staff to draft a Business Subsidy Council Member Carlson moved to adopt Resolution 01— 73, as presented. Council Member Dahl seconded the motion. Mayor Bergeson asked if the Counci . e draft of the policy. Finance Director Rolek advised the Council will review a icy prior to the public hearing. Motion carried unanimously. Resolution No. 01— 73 c in the City Clerk's office. Consideration of Authoriz g Staff to Draft a Tax Abatement Policy — Finance Director Rolek advised Tax Abatement is the ability of individual local taxing authorities (county, city or school district) to return their proportional share of property taxes on all or a portion of the property taxes on a parcel of property. Abatements were designed by the state legislature to give each jurisdiction a voice in economic development and redevelopment efforts. An abatement can be either a tax rebate or a tax deferment. The maximum an entity can abate is the greater of $100,000 per year or 5 percent of its levy. A Tax Abatement Policy is required before abatement is used to specify the criteria that will be used to determine if an abatement meets a public purpose. The Council action directs staff to draft a Tax Abatement Policy for Council consideration at the July 23, 2001, City Council meeting.