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Item #: 5A Meeting Date: November 20, 2015 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Business Subsidy Policy Introduction: As staff was reviewing fee schedules and policies for 2016 in relation to Tax Increment Financing (TIF) and Tax Abatements, it became apparent that the Business Subsidy policies were outdated and in need of attention. As a result, staff is in the process of reviewing each financial incentive policy and will provide a recommended draft of each policy to the EDC for review at each of the upcoming EDC meetings until all of the policies have been reviewed and recommended by the EDC to the EDA for approval. Discussion: The City of Mounds View’s Business Subsidy Policy was last updated May 2003. As staff was reviewing the policy, it became apparent that some of the language in the policy is in need of updating due to statutory changes and to clarify language that often causes confusion in agreements. Mounds View’s existing policy was structured around another city’s Business Subsidy Policy who uses the same law firm as Mounds View. That city recently updated their Business Subsidy Policies and has shared their current policy with Mounds View to use as an example. The updated version seeks to clarify and bring the policy up-to-date with current statutes. Since the policy was reviewed and recommended for approval by the same law firm that Mounds View utilizes, staff feels confident that the recommended changes utilize the most current language. Recommendation: 1. Review the Mounds View Business Subsidy Policy and provide direction to staff, highlighting any recommended changes if any. 2. Make a motion recommending to the EDA to review and approve the proposed changes amending the Mounds View Business Subsidy Policy.