06-23-2003 EDA Minutes - Laserfiche WebLink

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EDA MINUTES JUNE 23, 2003 DRAFT 2 C. Official Depositories 45 46 Ms. Divine advised the list of legal depositories approved for 2002 by the City Council were as 47 follows: 48 49 Wells Fargo Prudential Bache 50 First Bank, NA Community National Bank 51 US Bank Merrill Lynch 52 Dain Rauscher Solomon, Smith, Barney 53 Lino Lakes State Bank LMC 4M Fund 54 Others as needed 55 56 Ms. Divine indicated these depositories are used for checking, savings and investing City dollars. On 57 occasion the EDA and the City have financial transactions that will require the EDA to have 58 designated legal depositories. She advised that staff recommends approval of the list of legal 59 depositories. 60 61 EDA Member O'Donnell moved to approve the list of legal depositories, as approved for 2003 by the 62 City Council. EDA Member Dahl seconded the motion. Motion passed unanimously. 63 64 CONSIDERATION OF RESOLUTION NO. 03-01, ADOPTING REVISED BUSINESS 65 SUBSIDY CRITERIA 66 67 Ms. Divine advised that the Business Subsidy Act became effective on August 1, 1999, and required 68 grantors to adopt business subsidy criteria prior to granting business subsidies. She explained that 69 recognizing not all subsidies were for the purpose of creating jobs, the Minnesota Legislature 70 amended the Act in 2000, but delayed the effective date of those changes until 2003. She reviewed 71 the changes being proposed. 72 73 EDA President Carlson asked about the ability for businesses to move before five years has passed. 74 Ms. Divine indicated it was a requirement that all businesses stay in the jurisdiction for five years, 75 however the law has been revised to say that the grantor, being the City, can allow them to leave 76 early. 77 78 EDA President Carlson stated if businesses are required to stay five years it gives the City the ability 79 to regain some taxes in reimbursement for the subsidy, and she questioned why they would want to 80 allow businesses to leave before the five years was up. Ms. Divine indicated you usually would not 81 want to, and the City can require in their agreement that the business stay for five years, but this gives 82 the City an out if for some reason they feel it best to allow the business to leave. 83 84 EDA President Carlson asked if this could be covered in the previous item concerning the ability to 85 deviate from the criteria. Ms. Divine stated she would be more comfortable leaving the specific 86 language received from the Legislature. 87 88