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<br />EXHIBIT A <br />CITY OF MOUNDS VIEW <br />POLICY AND PROCEDURES RELATING TO THE USE OF <br />BUSINESS SUBSIDIES <br />2nd DRAFT 4/18/03 <br />I. PURPOSE <br />For the purposes of this document, the term “City” shall include the Mounds View Economic <br />Development Authority (EDA). This Business Subsidies Policy will be considered at a joint <br />meeting of the EDA/City Council on April 28, 2003. <br /> <br />The purpose of this policy is to establish guidelines and criteria regarding the use of <br />business subsidies, such as tax increment financing (TIF), tax rebate financing (TRF), <br />otherwise referred to as tax abatement, and other business subsidies for private <br />development projects within the City of Mounds View and shall be in addition to the <br />requirements and limitations set forth by provisions of Minnesota State Statute 116J.993 <br />(Minnesota Business Subsidy Law), and by the City’s policy and guidelines of the particular <br />form of subsidy. <br /> <br />These guidelines shall be used in processing and reviewing applications requesting <br />business subsidies assistance. The fundamental purpose of business subsidies in the City <br />is to encourage desirable development or redevelopment that would not otherwise occur <br />“but for” the assistance provided through business subsidies. <br /> <br />It is the intent of the City to provide a minimum amount of business subsidies, as well as <br />other incentives that the City may deem appropriate, at the shortest term required for the <br />project to proceed. The City reserves the right to approve or reject projects on a case-by- <br />case basis, taking into account established policies, specific project criteria, and demand <br />on city services in relation to the potential benefits to be received from a proposed project. <br />Meeting policy guidelines or other criteria does not guarantee the award of business <br />subsidies. Furthermore, the approval or denial of one project is not intended to set <br />precedent for approval or denial of another project. <br /> <br /> <br />II. DEFINITION OF “BUSINESS SUBSIDY” <br /> <br />The following types of assistance having a value equal to or in excess of $25,000 are <br />defined as a “business subsidy” within the Minnesota Business Subsidy Law: <br />• State and local government agency grants; <br />• Contributions of personal property, real property, or infrastructure; <br />• The principal amount of a loan that exceeds $75,000 at rates below those <br />commercially available; <br />• Reductions or deferrals of taxes or fees; <br />• Guarantees of any payment under any loan, lease, or other obligation; and, <br />• Preferential use of government facilities.