06-23-2003 EDA Minutes - Laserfiche WebLink

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EDA MINUTES JUNE 23, 2003 DRAFT 3 EDA President Carlson noted that the language concerning the five-year requirement has been added 89 to Section 2.03 and has been struck from Section 5 as previously written. She asked if that change 90 was for a specific reason, and if they could instead have the language in both sections. Ms. Divine 91 indicated Section 2.03 refers to specific Development Agreements. She noted any subsidy granted by 92 the EDA must also be approved by the City Council. She believes the language change was just the 93 TIFAttorney’s way of making if specific. She added that in the past, the Development Agreement 94 was only approved by the EDA, and the actual subsidy was approved by both entities. She stated if 95 members prefer, the language can include that both entities approve the five-year requirement. 96 97 EDA Member Dahl stated she would be more comfortable if the language was in both sections. EDA 98 Member Bergeson asked where the strikeouts in the proposed criteria came to be. Ms. Divine stated 99 they were edited by the city’s TIF Attorney. EDA Member Bergeson suggested they put the language 100 in both sections subject to consulting with the TIF Attorney. 101 102 EDA Member Bergeson asked about zero job creation. Ms. Divine indicated that this would be 103 reviewed on a case-by-case basis. She advised each time the City gives a subsidy they have to decide 104 why they are doing it, whether to improve the tax base, utilize existing infrastructure, implement the 105 Comprehensive Plan, or wage and job goals. She stated some cities were having trouble justifying the 106 job goals, when the real reason for the subsidy may have been for other reasons, such as improving 107 the tax base. This gives cities the ability to have wage and job goals, but does not require that they 108 have them if the main goal is some other reason. 109 110 EDA Member Reinert moved to open the public hearing at 6:23 p.m. EDA Member Dahl seconded 111 the motion. Motion carried unanimously. 112 113 EDA Member Dahl moved to close the public hearing at 6:23 p.m. EDA Member O'Donnell 114 seconded the motion. Motion carried unanimously. 115 116 EDA Member Bergeson moved to adopt Resolution No. 03-01 approving the revised Business 117 Subsidy Criteria as outlined by staff, restoring the previously struck-out portion of Section 5.01. 118 EDA Member O'Donnell seconded the motion. 119 120 EDA Member Dahl asked if it was correct that the number of new jobs could start at zero, but could 121 be a requirement as in the past. Ms. Divine indicated that was correct, the City can choose. EDA 122 Member Reinert stated this does not take away any of the City’s authority, it only gives them more 123 options. 124 125 EDA President Carlson noted she has been in favor of wage and job goals since before she was on the 126 City Council, and she also has a concern about businesses not staying in the City for five years after 127 receiving a subsidy. 128 129 EDA Member Dahl asked for more explanation about the ability of a business to move before the five 130 years was over. Ms. Divine stated if the EDA holds a public hearing and decides they want to release 131 a business from that requirement, they have the authority to do so. She indicated it gives the EDA the 132 option of releasing the business from its agreement if it seems a reasonable thing to do. 133