12-18-2015 - Laserfiche WebLink

Home Browse Search

Draft EDC Minutes November 20, 2015 Page 2 of 8 The first change was to add a title page listing the approving authority and dates of approved amendments. From researching past meeting minutes, it is thought that the City Council gave its authority to the EDA as the final approving authority for policies and business subsidies. However, there is some reference to the City Council’s involvement in joint public hearings. By notating the authority and date on the title page it will help save time for staff in the future. Second, staff added a table of contents. Next, the phrase Tax Rebate Financing was changed to Tax Abatement since that it how it is referenced in state statues and in other city’s policies. Chair Helgemoe clarified that in past history a Commissioner had wanted it phrased as Tax Rebate Financing so that residents didn’t think the city was providing a gift. Beeman explained that there are two types of Tax Abatement. One type can be used to forgive a portion of the property tax depending on the circumstance, another way to use Tax Abatement, which is more common, is to apply a portion of the monies back into the development project. Staff clarified what criteria would require a public hearing. There has been some confusion in the past as to when a subsidy would require a hearing. To simplify the matter, staff included the 23 instances that would trigger a public hearing. Under Roman numeral III staff added a clause defining the public purpose and objective stating, it is a development that would not be achieved without the assistance of a public subsidy. This language is again consistent with the state statute. Under IV, letter D. was added to provide guidelines on not exceeding the fair market value. The definition of excess fair market value normally is the excess of the acquisition price being in excess of 10% of the market value. The clause also leaves discretion to the city on a case-by-case basis in instances that may be deemed appropriate. Section V is the addition of retail and service industry as a recipient of business subsidies. Although retail is not normally a benefactor in public subsidies, they may qualify in circumstances where the project contributes to a strategic goal of the city like the addition of considerable jobs or the overall tax base. This clause provides a guideline for the city in those situations. Business retention was defined due to past confusion in dealings with other businesses wanting to keep the same number of employees but add to the overall valuation with a new building or expansion project. The subsidy would be allowed in instance where the jobs would be lost but for the new development occurring. The retained jobs need to provide for the increased and diversification of local jobs. To be considered for a new or retained job a Minimum wage has been defined in order to receive a public subsidy. Minimum wage in this sense is not referring to the State and Federal set minimum wages, however, the policy’s minimum wage is based upon $15.00 per hour or 150% of the State or Federal minimum wage whichever is greater. This is exclusive of the benefits required by law. The policy leaves discussion in instance where the project would provide a significant increase in the tax base.