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Business Subsidy Policy Report <br />January 4, 2016 <br />Page 2 <br /> <br />IV. Added D. giving a guideline of excess fair market value but leaving discretion to the EDA on a <br />case-by-case basis. <br /> <br />Added H. “minimum” assessment. This language is recommended since many cities were <br />caught with a negative increment during the housing crisis. Going forward, adding a minimum <br />assessment in Business Subsidy Policies protects the city by maintaining a minimum threshold <br />to base the property valuation and eventual increment. <br /> <br /> Added K. this spreads the risk among other taxing jurisdictions. <br /> <br />V. Added A. criteria for retail or service business. <br /> <br /> Under C. Clarified the meaning of “retention” since this often creates confusion. <br /> <br />D. Defined, “Benefit Date”. This creates confusion in policies that don’t define the benefit date. <br /> <br />E. Specified the minimum wage rate to be considered a new or retained job must be the greater <br />of at least $15.00 per hour or 150% of state or federal minimum wage. <br /> <br />VII. Simplified the application process and procedure. Added, $3,000 non-refundable application fee <br />and $10,000 deposit to cover consulting, legal, fees etc. <br /> <br />Mounds View’s existing policy was structured around another city’s Business Subsidy Policy which <br />uses the same law firm as Mounds View. That city recently updated their Business Subsidy Policies <br />and has shared their current policy with Mounds View to use as an example. The updated version <br />seeks to clarify and bring the policy up-to-date with current statutes. Since the policy was reviewed <br />and recommended for approval by the same law firm that Mounds View utilizes, staff feels confident <br />that the recommended changes utilize the most current language. Scott Riggs, City Attorney and <br />Ehler’s, the City’s financial consultant, has reviewed the policy. <br /> <br />Recommendation: <br /> <br />1. Review the Mounds View Business Subsidy Policy (attached) and provide direction to staff, <br />highlighting any recommended changes, if any. <br /> <br />2. If accepted, staff will make any recommended changes and have the updated policy ready for <br />the January 24, 2016 joint Council/EDA meeting and Public Hearing. <br /> <br />Respectfully submitted, <br /> <br /> ________________________ <br />Brian Beeman <br />Business Development Coordinator <br /> <br />Attachments: <br /> <br />1. Mounds View Business Subsidy Policy (Proposed Draft Amendment 2016) <br />2. Mounds View Business Subsidy Policy (Existing Original Adopted May 2003)