06-23-2003 EDA Minutes - Laserfiche WebLink

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EDA MINUTES JUNE 23, 2003 DRAFT 4 134 EDA Member Dahl asked if the language could say the business can move but they are still 135 responsible for the subsidy. EDA Member Dahl stated it seems like they are letting the business go if 136 they say they cannot pay and they want to leave. Ms. Divine indicated that the city does not continue 137 to pay a subsidy after the business has left. Ms. Divine indicated the City could find the business in 138 default of its agreement if the business left the city. 139 140 EDA Member Reinert commented that this change is an option for the EDA, not a loophole for 141 businesses. He noted the EDA would have to release the business from their obligation, and at that 142 time the EDA could put a stipulation on the release. Ms. Divine suggested that in the Development 143 Agreement they could put such a stipulation. She noted this is general criteria of what is allowed by 144 statute. 145 146 EDA Member Bergeson stated he would speak in favor of leaving the language as drafted, since it 147 mirrors what is in the law, and there may be cases where the City would want to allow movement. 148 For instance, if there is a small business on a large parcel that would be better suited for the 149 community with a different use; the City may want the option to allow the business to move. 150 151 EDA Member O'Donnell concurred, noting this allows the City flexibility. 152 153 Motion carried. EDA President Carlson opposed. 154 155 CONSIDERATION OF RESOLUTION 03-02, EXTENDING THE COMPLIANCE DATE 156 FOR THE WAGE AND JOB GOALS FOR MARMON/KEYSTONE 157 158 Ms. Divine summarized her report, indicating the EDA may, after a public hearing, extend the 159 compliance date by up to one year, as requested. If Marmon/Keystone is not given an extension, the 160 tax increment financing would be withheld according to a formula that is based on a pro rata share of 161 the number of jobs created versus the number required. 162 163 EDA Member Dahl asked how many extensions are allowed if the goal is not met by June 1, 2004. 164 Ms. Divine stated this is the only extension that could be granted. She indicated if the goal is not met 165 by then, the Development Agreement states options the EDA could take at that time. 166 167 EDA Member Dahl asked if Marmon/Keystone is aware they would be saving themselves $175,000 if 168 they met the goal. Ms. Divine indicated she has had that discussion with them. 169 170 EDA Member Reinert moved to open the public hearing at 6:37 p.m. EDA Member O'Donnell 171 seconded the motion. Motion carried unanimously. 172 173 EDA Member Dahl moved to close the public hearing at 6:37 p.m. EDA Member O'Donnell 174 seconded the motion. Motion carried unanimously. 175 176