HomeMy WebLinkAboutAgenda Packets - 2016/01/04
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, January 4, 2016
7:00 p.m.
ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller
PUBLIC COMMENT
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your
full name and address for the minutes. Also, please limit your comments to three minutes.
Agenda Items Discussed by Consensus
1. Energy Savings Partnership Update
2. Review Public Works Space Needs Study
3. Discuss the 2015 Citizen of the Year Award
4. Review Revisions to the Business Subsidy Policy
5. Review Results of the Organized Collection Telephone Survey
Next Work Session: Monday, February 1, 2016, at 7pm
Next City Council Meeting: Monday, January 11, 2016 at 7pm
Item No. 1.
Meeting Date: January 4, 2016
Type of Business: Work Session
City Administrator Review: ______
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Brian Erickson, P.E., Public Works Director/City Engineer
Item Title/Subject: Energy Savings Partnership Update
Introduction
January 12, 2015, the City of Mounds View entered into an agreement with Trane for an Energy
Savings Partnership to address a number of areas where new technology would allow the city to
lower the current utility costs. These improvements included:
• Community Center interior lighting retrofit and upgrades (LED)
• Community Center exterior lighting retrofit and upgrades
• Community Center replace RTU #3,#5, #6 and #7 & kitchen MUA with BAS
upgrades
• City Hall HVAC controls
• City Hall interior lighting retrofit and upgrade to T-8
• City Hall boiler BAS control upgrades
• City Hall and Community Center install solar panels 20KW system
• Trail Lights upgrade to LED
Discussion
Since the beginning of this project Trane has completed several of the proposed items including
the trail lighting, building automation system upgrades and a majority of the interior and exterior
lighting upgrades. However, one item that has continued to lag behind is the installation of the
solar panels on City Hall and the Community Center. Several issues have led to this situation
including clarification of rebates allowed for the subcontractor and building structural analysis.
Staff has been meeting with Trane and their subcontractors in order to clarify and establish a
timeline for completion of the rest of this project. In order to provide additional information to
and address these questions for the Council, Jeff Groth, District Contracting Operations Leader
and Bill Nicol, Jr. Area Contracting Manager will be attending the work session.
Respectfully Submitted,
Brian Erickson, P.E.
Item No. 2.
Meeting Date: January 4, 2016
Type of Business: Work Session
City Administrator Review: ______
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Brian Erickson, P.E., Director of Public Works /City Engineer
Item Title/Subject: Review Public Works Space Needs Study
Introduction
At the September 8, 2015 City Council Work Session, staff discussed need to retain a consultant to
perform a space needs study. The request for proposals was subsequently approved at the September
14, 2015 Council Meeting. On October 12, 2015 the City Council approved an agreement between the
City of Mounds View and Oertel Architects to perform the study. Oertel Architects completed a draft of
the space needs study on December 14, 2015 which also incorporated staff comments. This study was
provided to the City Council on December 17, 2015.
Discussion
As a kick off to the project, the architect reviewed the existing facility and fleet. In addition, he spoke
with a number of staff members regarding the operations that occur in and around the Public Works
Facility. With this background, he was able to establish a baseline for five scenarios:
1. Reconstruct existing facility at the same size, which is useful for comparing costs with the
subsequent 4 scenarios (22,191 square feet).
2. Construct new facility to meet current needs (21,490 square feet).
3. Construct new facility to meet projected 10-year growth needs (22,989 square feet).
4. Construct new facility to meet projected 20-year growth needs (25,527 square feet).
5. Construct new facility to meet projected 30-year growth needs (29,272 square feet).
With each of these scenarios a budget estimate was prepared. This estimate included costs for design,
construction, contingency, furniture, and other miscellaneous costs. The resulting estimates range from
$3.3 million (for scenario 1) to $4.5 million (for scenario 5). It should be noted that there may be
additional items in this program which would lead to overall lifecycle cost savings. These may include
LEED strategies, Energy Star and other items. It may also be prudent to consider items such as
renewable energy (i.e. solar or wind power), which could be added at a future time. However,
designing for this now would allow easier installation any time after construction is completed.
Representatives from Oertel Architects will be attending the work session to address questions and
concerns of Council.
Respectfully Submitted,
Brian Erickson, P.E.
Item No: 03
Meeting Date: January 4, 2016
Type of Business: Work Session
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Desaree Crane, Assistant City Administrator
Item Title/Subject: 2015 Citizen of the Year Award
Introduction:
The City of Mounds View Citizen of the Year Award recognizes ordinary citizens who have
demonstrated initiative to improving the community. Past recipients of this award include:
2004: David Jahnke
2005: Frank Silvis
2006: Ed Lanz
2007: Don Hodges
2008: Barbara Haake
2009: Diane Wuori
2010: Jean Miller
2011: Jerry Skelly
2012: Greg Belting
2013: Gary Stevenson
2014: Theresa Cermak
Nominations are open to the public and the award is subject to the following guidelines below:
Eligibility:
Nominees must be a Mounds View resident, business owner or land owners. Current elected
officials, City employees, City contractors, or past Citizen of the Year Award recipients are not
eligible.
Selection Criteria:
Courage: Exemplifies courage and determination to follow one’s own values.
Initiative: Demonstrates drive and initiative in his/her approach and overcoming
challenges on the way.
Time Commitment: Volunteers a significant amount of time and energy to the betterment
of the City of Mounds View and its residents; more than just financial
contributions.
Effectiveness: Generates positive results for the community.
Unselfishness: Does not expect anything in return for his/her actions, i.e., financial
compensation, fame or political notoriety.
Item 03
January 4, 2016, Work Session
Page 2
Discussion:
This award is currently scheduled to be awarded at the Monday, March 21, 2016, Town Hall
Meeting, located at City Hall. Below is the timeline for applications and City Council approval. Staff
will advertise on the City’s website, City’s Facebook page, and submit press releases to the Sun
Focus and the Bulletin.
Applications Available at City Hall & on the City Website: Tuesday, January 5, 2016
Applications due to Assistant City Administrator: Friday, January 29, 2016
Applications to the City Council for Review: Monday, February 1, 2016 (WS)
2015 Citizen of the Year Awarded by City Council Resolution: Monday, February 8, 2016
(Council Meeting)
2015 Citizen of the Year Award Recipient Contacted: Tuesday, February 9, 2016
2015 Citizenship Award Plaque Ordered: Wednesday, February 10, 2016
2015 Citizenship Award Presented to Recipient: Monday, March 21, 2016
Recommendation:
This is to inform the City Council that Staff is starting the process to accept nomination applications
for the 2015 Citizen of the Year Award. Applications for the 2015 Citizen of the Award will be
available at City Hall and the City’s website starting on Tuesday, January 5, 2016.
Respectfully submitted,
________________________
Desaree Crane
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 1 of 8
Business Subsidy Policy
Amended: (Expected) January, 2016
City Council Adopted: (Expected) January, 2016
EDA Adopted: (Expected) January, 2016
Original Adopted:
City Council May, 2003
Economic Development Authority May, 2003
City of Mounds View
2401 County Road 10
Mounds View , MN 55112
763.717.4029
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 2 of 8
Table of Contents
I. Purpose 3
II. Definition of “Business Subsidy” 3
III. Public Purpose Objectives of Business Subsidies 5
IV. General Policies for the Use of Business Subsidies 5
V. Guidelines for Commercial/Industrial
Business Subsidies
6
VI. Subsidy Agreement and Reporting Requirements 7
VII. Subsidy Application Process and Procedure 8
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 3 of 8
CITY OF MOUNDS VIEW
POLICY AND PROCEDURES RELATING TO THE USE OF BUSINESS SUBSIDIES
I. PURPOSE
For the purposes of this document, the term “City” shall include the Mounds View
Economic Development Authority (EDA). The original Business Subsidies Policy was
adopted at a joint meeting of the EDA/City Council on May 12, 2003.
The purpose of this policy is to establish guidelines and criteria regarding the use of business
subsidies, such as tax increment financing (TIF), tax abatement, and other business subsidies
for private development projects within the City of Mounds View. This policy shall be used as
criteria for providing subsidies, in addition to the requirements and limitations set forth by
provisions of Minnesota State Statute 116J.993 to 116J.995 (Minnesota Business Subsidy
Law), and by the City’s policy and guidelines of the particular form of subsidy.
These guidelines shall be used in processing and reviewing applications requesting business
subsidies assistance. The fundamental purpose of business subsidies in the City is to
encourage desirable development or redevelopment that would not otherwise occur “but for”
the assistance provided through business subsidies.
It is the intent of the City to provide a minimum amount of business subsidies, as well as other
incentives that the City may deem appropriate, at the shortest term required for the project to
proceed. The City reserves the right to approve or reject projects on a case -by-case basis,
taking into account established policies, specific project criteria, and demand on city services
in relation to the potential benefits to be received from a propo sed project. Meeting policy
guidelines or other criteria does not guarantee the award of business subsidies. Furthermore,
the approval or denial of one project is not intended to set precedent for approval or denial of
another project.
Whenever possible it is the City’s intent to coordinate the use of business subsidies with
other applicable taxing jurisdictions.
II. DEFINITION OF “BUSINESS SUBSIDY”
“Business subsidy” means a local government agency grant, contribution of personal property,
real property, infrastructure, the principal amount of a loan at rates below those commercially
available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any
payment under any loan, lease, or other obligation, or any preferential use of government
facilities given to a business.
The following forms of financial assistance are not considered a business subsidy that would
require a public hearing:
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 4 of 8
1. a business subsidy of less than $150,000;
2. assistance that is generally available to all businesses or to a general class of
similar businesses, such as a line of business, size, location, or similar general
criteria;
3. public improvements to buildings or lands owned by the state or local government
that serve a public purpose and do not pri ncipally benefit a single business or defined
group of businesses at the time the improvements are made;
4. redevelopment property polluted by contaminants as defined;
5. assistance provided for the sole purpose of renovating old or decaying building stock
or bringing it up to code and assistance provided for designated historic preservation
districts, provided that the assistance is equal to or less than 50 percent of the total
cost;
6. assistance to provide job readiness and training services if the sole purpose of
the assistance is to provide those services;
7. assistance for housing;
8. assistance for pollution control or abatement, including assistance for a tax
increment financing hazardous substance sub district as defined;
9. assistance for energy conservation;
10. tax re ductions resulting from conformity with federal tax law;
11. workers' compensation and unemployment insurance;
12. benefits derived from regulation;
13. indirect benefits derived from assistance to educational institutions;
14. funds from bonds allocated under chapter 474A, bonds issued to refund outstanding
bonds, and bonds issued for the benefit of an organization described in section
501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31,
1999;
15. assistance for a collaboration between a Minnesota higher education institution and a
business;
16. assistance for a tax increment financing soils condition district as defined;
17. redevelopment when the recipient's investment in the purchase of the site and in site
preparation is 70 percent or more of the assessor's current year's estimated market
value;
18. general changes in tax increment financing law and other general tax law changes of
a principally technical nature;
19. federal assistance until the assistance has been repaid to, and reinvested by, the
state or local government agency;
20. funds from dock and wharf bonds issued by a seaway port authority;
21. business loans and loan guarantees of $150,000 or less;
22. federal loan funds provided through the United States Department of Commerce,
Economic Development Administration; and
23. property tax abatements granted under section 469.1813 to property that is subject to
valuation under Minnesota Rules, chapter 8100.
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 5 of 8
Notwithstanding the definitions listed above under 1 and 23, "business subsidies" as defined
also includes the following forms of financial assistance and is subject to this policy, with the
exception of a public hearing as the amount of assistance is less than $150,000, with limited
reporting forms required:
1. a business subsidy of $25,000 or more; and
2. business loans and guarantees of $75,000 or more.
The definition of a “business subsidy” is in compliance with the current Minnesota Business
Subsidy Law and is subject to any law changes that may occur.
III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES
In accordance with the Minnesota Business Subsidy Law, the City will consider using business
subsidies to assist private development projects to achieve one or more of the following public
purpose objectives:
To retain local jobs and/or increase the number and diversity of jobs that offer stable
employment and/or attractive wages and benefits.
To enhance and diversify the City of Mounds View’s economic base and to
increase the tax base.
To achieve development on sites which would not be developed without business
subsidies assistance.
To remove blight and/or encourage development of commercial, industrial or high
priority areas in the city that result in higher quality redevelopment and private
investment.
To encourage the revitalization and redevelopment of the County Road 10 Corridor.
To encourage additional unsubsidized private development in the area, either
directly or indirectly through “spin off” development.
To offset increased costs of redevelopment (i.e. contaminated site cleanup,
demolition expenses, etc.) over and above the costs normally incurred in
development and when the unique physical characteristics of the site may otherwise
preclude private investment.
To finance the costs associated with public infrastructure and public facilities.
IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES
A. Business subsidy assistance will be provided from the City, by a “pay-as-you-go” note
method, to the developer if the b usiness subsidy is tax increment financing or tax
abatement. Requests for up front financing will be considered on a case -by-case
basis.
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 6 of 8
B. It is the intent of the City to provide the minimum financing, as well as other incentives,
at the shortest term required for the project to proceed.
C. A developer requesting business subsidy assistance must demonstrate, to the
satisfaction of the City, sufficient cash equity investment in the project as required
within the City’s policy for the particular form of subsidy.
D. Business subsidy assistance may not be provided in circumstances where land/or
property price is demonstrated by the County Assessor to be in excess of fair market
value. This would normally be where the acquisition price is more than 10% in excess
of market value. Determination will be provided on a case -by-case basis.
E. developer must be able to demonstrate to the City, or, if applicable, to the underwriting
authority, a market-demand for a proposed project.
F. Business subsidy will not be used in cases where the subsidy would create an unfair
and significant competitive financial advantage over other similar projects in the area.
G. Business subsidy will not be used for projects that would place extraordinary demands
on city infrastructure and services.
H. If requested by the City, the developer shall provide adequate financial guarantees to
ensure completion of the project, including, but not limited to: minimum assessment
agreements, letters of credit, cash escrows, and personal guaranties.
I. Each developer must be able to demonstrate to the City’s satisfaction, an ability to
construct, operate, and maintain the proposed project based on past experience,
general reputation, and credit history.
J. If requested by the City, or its consultants, the developer shall pro vide sufficient market,
financial, environmental, or other data relative to the successful operation of the project.
The requested information will be used to evaluate the necessity of the requested
assistance, and/or establish the “but for” test.
K. Projects receiving business subsidy approval from other affected taxing jurisdictions
i.e. (County, School District) will be more favorably received by the City.
V. GUIDELINES FOR COMMERCIAL/INDUSTRIAL/RETAIL BUSINESS
SUBSIDIES
A. Business subsidies may be considered for retail or service businesses if it will result in
satisfying a clear strategic goal of the City, including, but not limited to substantial
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 7 of 8
increase in tax base and a significant improvement in a redevelopment project, and
quality employment.
B. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan,
and Zoning Ordinances.
C. The project must result in the retention of existing jobs that would be lost “but for” the
proposed development or result in an increased and diversifica tion in local jobs.
Business retention jobs will be considered on a one -for-one match to job creation only
in cases where job loss is specific and demonstrable in accordance with the Minnesota
Business Subsidy Law.
D. Specific wage and job goals will be dete rmined by the City giving consideration to the
particular form of the subsidy, nature of the development, the purpose of the subsidy,
local economic conditions and similar factors. The recipient will have up to two years
from the benefit date, which is the date the recipient receives the subsidy, to meet the
job and wage goals established by the City. The City may, at its discretion, extend the
deadline for up to one additional year if the job and wage goals have not been met
within two years as per State Statutes.
E. The minimum wage for a job to be considered a new or retained job shall be the
greater of $15.00 per hour or 150% of state or federal minimum wage, exclusive of
benefits required by law. Deviations from the job and wage goal may be considered for
projects that will result in a significant increase in tax base. Deviations less than the
wage floor will be considered on a case -by-case basis and in accordance with the
requirements of the Minnesota Business Subsidy Law.
F. Business subsidies will not be used for commercial/industrial/retail projects that have a
history of inconsistent compliance with applicable environmental rules and r egulations.
VI. SUBSIDY AGREEMENT AND REPORTING REQUIREMENTS
Each company receiving a business subsidy shall be subject to the subsidy agreement and
reporting provisions and requirements set forth by the Minnesota Business Subsidy Law and
summarized below:
A. Progress Reports
The recipient shall file a report annually for two years after receiving the subsidy or until
all goals set forth in the subsidy agreement have been met, which ever is later. Reports
shall be completed using the format drafted by the State of Minnesota and shall be filed
with the City no later than March 1 of each ye ar for the progress made the previous
year.
City of Mounds View Business Subsidy Policy
Amended (Expected) January 2016
Page 8 of 8
B. Maintain Facility
The recipient agrees to maintain and operate its facility at the site where the subsidy is
used for a period of five years after the date the subsidy is provided.
C. Failure to Comply
Businesses failing to comply with the subsidy agreement will be subject to the terms of
the individual agreement, repayment requirements at the rate established within the
Minnesota Business Subsidy Law, and be deemed ineligible by the State to receive
any loans or grants from public entities for a period of five years.
VII. SUBSIDY APPLICATION PROCESS AND PROCEDURE
A. Application for business subsidies shall be made using the Public Assistance
Application provided by the City of Mounds View Economic Development Coordinator,
or designee.
B. The Public Assistance Application shall request information required within the City’s
policies including but not limited to; a detailed description of the project; a prelimi nary
site plan; the amount of business subsidy requested; the public purpose of the project;
the number and types of jobs to be created; the wages and benefits to be paid new
employees; a detailed project budget with verifiable funding sources and uses; and a
detailed operating pro forma, if applicable.
C. The applicant agrees and acknowledges to pay a non-refundable $3,000 Public
Assistance Application Fee.
D. At the time of acceptance by staff of the Public Financing Application, the applicant
shall deposit $10,000 with the City to cover attorney and consultant costs incurred as
part of establishing a TIF district or abatement, drafting and negotiating a development
agreement, and conducting any fiscal analysis that may be required to meet the
requirements of utilizing any public financing. If additional expenses are incurred
beyond the $10,000, prior to the execution of a de velopment agreement, the City shall
notify the applicant in writing and the applicant will be required to deposit additional
funds upon notice.
E. Following a revi ew by appropriate City Staff/Consultants the application shall be
referred to the Economic Development Authority for further action.
F. Before granting a business subsidy that exceeds $150,000, the City shall provide
public notice and hold a hearing on the s ubsidy unless a hearing and notice on the
subsidy is otherwise required by law.
CITY OF MOUNDS VIEW
POLICY AND PROCEDURES RELATING TO THE USE OF
BUSINESS SUBSIDIES
I. PURPOSE
For the purposes of this document, the term “City” shall include the Mounds View Economic
Development Authority (EDA). This revised Business Subsidies Policy was adopted at a joint
meeting of the EDA/City Council on May 12, 2003.
The purpose of this policy is to establish guidelines and criteria regarding the use of
business subsidies, such as tax increment financing (TIF), tax rebate financing (TRF),
otherwise referred to as tax abatement, and other business subsidies for private
development projects within the City of Mounds View and shall be in addition to the
requirements and limitations set forth by provisions of Minnesota State Statute 116J.993
(Minnesota Business Subsidy Law), and by the City’s policy and guidelines of the particular
form of subsidy.
These guidelines shall be used in processing and reviewing applications requesting
business subsidies assistance. The fundamental purpose of business subsidies in the City
is to encourage desirable development or redevelopment that would not otherwise occur
“but for” the assistance provided through business subsidies.
It is the intent of the City to provide a minimum amount of business subsidies, as well as
other incentives that the City may deem appropriate, at the shortest term required for the
project to proceed. The City reserves the right to approve or reject projects on a case -by-
case basis, taking into account established policies, specific project criteria, and demand
on city services in relation to the potential benefits to be received from a proposed project.
Meeting policy guidelines or other criteria does not guarantee the award of business
subsidies. Furthermore, the approval or denial of on e project is not intended to set
precedent for approval or denial of another project.
II. DEFINITION OF “BUSINESS SUBSIDY”
The following types of assistance having a value equal to or in excess of $25,000 are
defined as a “business subsidy” within the Minnesota Business Subsidy Law:
State and local government agency grants;
Contributions of personal property, real property, or infrastructure;
The principal amount of a loan that exceeds $75,000 at rates below those
commercially available;
Reductions or deferrals of taxes or fees;
Guarantees of any payment under any loan, lease, or other obligation; and,
Preferential use of government facilities.
III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES
In accordance with the Minnesota Business Subsidy Law, the City will consider using
business subsidies to assist private development projects to achieve one or more of the
following public purpose objectives:
To retain local jobs and/or increase the number and diversity of jobs that offer
stable employment and/or attractive wages and benefits.
To enhance and diversify the City of Mounds View’s economic base and to
increase the tax base.
To remove blight and/or encourage development of commercial, industrial or
high priority areas in the city that result in highe r quality redevelopment and
private investment.
To encourage the revitalization and redevelopment of the County Highway 10
Corridor.
To encourage additional unsubsidized private development in the area, either
directly or indirectly through “spin off” development.
To offset increased costs of redevelopment (i.e. contaminated site cleanup,
demolition expenses, etc.) over and above the costs normally incurred in
development.
To finance the costs associated with public infrastructure and public facilities.
IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES
A. Business subsidy assistance will be provided from the City, by a “pay -as-you-go”
note method, to the developer if the business subsidy is tax increment financing or
tax abatement. Requests for up fron t financing will be considered on a case-by-
case basis.
B. It is the intent of the City to provide the minimum financing, as well as other
incentives, at the shortest term required for the project to proceed.
C. A developer requesting business subsidy assistance must demonstrate, to the
satisfaction of the City, sufficient cash equity investment in the project as required
within the City’s policy for the particular form of subsidy.
D. A developer must be able to demonstrate to the City, or, if applicable, to t he
underwriting authority, a market-demand for a proposed project.
E. Business subsidy will not be used in cases where the subsidy would create an unfair
and significant competitive financial advantage over other similar projects in the
area.
F. Business subsidy will not be used for projects that would place extraordinary
demands on city infrastructure and services.
G. If requested by the City, the developer shall provide adequate financial guarantees
to ensure completion of the project, including, but no t limited to: assessment
agreements, letters of credit, cash escrows, and personal guaranties.
H. Each developer must be able to demonstrate to the City’s satisfaction, an ability to
construct, operate, and maintain the proposed project based on past experie nce,
general reputation, and credit history.
I. If requested by the City, or its consultants, the developer shall provide sufficient
market, financial, environmental, or other data relative to the successful operation of
the project.
V. GUIDELINES FOR COMMERCIAL/RETAIL BUSINESS
SUBSIDIES
A. Business subsidies will not be used for commercial, retail or service businesses
unless it is a development or redevelopment project that demonstrates that it will
result in a significant increase in tax base.
B. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan,
and Zoning Ordinances.
C. Specific wage and job goals will be determined by the City giving consideration to
the particular form of the subsidy, nature of the development, the pur pose of the
subsidy, local economic conditions and similar factors. The recipient will have up to
two years to meet the job and wage goals established by the City. The City’s job
goal is that each commercial/retail business receiving assistance will create at least
one new fulltime job through the implementation of the project. A retention project
must result in the retention of existing jobs that would be lost “but for” the proposed
development or result an increase and diversification in local jobs. B usiness
retention jobs will be considered on a one -for-one match to job creation only in
cases where job loss is specific and demonstrable in accordance with the
Minnesota Business Subsidy Law.
D. The minimum wage for a job with a commercial/retail business to be considered a
new or retained job shall be equal to at least 125% of the federal minimum wage or
currently $6.44 per hour exclusive of benefits. Deviations less than the wage floor
will be considered on a case-by-case basis and in accordance with the requirements
of the Minnesota Business Subsidy Law.
E. Business subsidies will not be used for commercial/retail projects that have a history
of inconsistent compliance with applicable environmental rules and regulations.
VI. GUIDELINES FOR INDUSTRIAL BUSINESS SUBSIDIES
A. Business subsidies will not be used for industrial businesses unless it is a
development or redevelopment project that demonstrates that it will result in a
significant increase in tax base.
B. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan,
and Zoning Ordinances.
C. Specific wage and job goals will be determined by the City giving consideration to
the particular form of the subsidy, nature of the development, the purpose of the
subsidy, local economic conditions and similar factors. The recipient will have up to
two years to meet the job and wage goals established by the City. The City’s job
goal is that each industrial business receiving assistance will create at least one
new fulltime job through the implementation of the project. A retention project must
result in the retention of existing jobs that would be lost “but for” the proposed
development or result an increase and diversification in local jobs. Business
retention jobs will be considered on a one-for-one match to job creation only in
cases where job loss is specific and demonstrable in accordance with the
Minnesota Business Subsidy Law.
D. The minimum wage for a job with an industrial applicant to be considered a new or
retained job shall be equal to at least 140% of the federal minimum wage or
currently $7.21 per hour exclusive of benefits. Deviations less than the wage floor
will be considered on a case-by-case basis and in accordance with the requirements
of the Minnesota Business Subsidy Law.
E. Business subsidies will not be used for industrial projects that have a history of
inconsistent compliance with applicable environmental rules and regulations.
VII. SUBSIDY AGREEMENT AND REPORTING REQUIREMENTS
Each company receiving a business subsidy shall be subject to the subsidy agreement and
reporting provisions and requirements set forth by the Minnesota Business Subsidy Law
and summarized below:
A. Progress Reports
The recipient shall file a report annually for two years after the receiving the
subsidy or until all goals set forth in the subsidy agreement have been met,
which ever is later. Reports shall be completed using the format drafted by the
State of Minnesota and shall be filed with the City no later than March 1 of each
year for the progress made the previous year.
B. Maintain Facility
The recipient agrees to maintain and operate its facility at the site where the
subsidy is used for a period of five years after the date the subsidy is provided.
C. Failure to Comply
Businesses failing to comply with the subsidy agreement will be subject to fines,
repayment requirements, and be deemed ineligible by the State to receive any
loans or grants from public entities for a period of five years.
VIII. SUBSIDY APPLICATION PROCESS AND PROCEDURE
A. Application for business subsidies shall be made on forms for the particular form of
assistance provided by the City of Mounds View Economic Development
Coordinator, or designee. A deposit fee of $ 5,000.00 shall accompany an y Tax
Increment Finance request application to cover the City’s initial legal, administrative,
and planning costs. A fee of $1,000.00 shall accompany any Tax Rebate (or
Abatement) Financing to cover the City’s legal, administrative, and planning costs.
Following a review by appropriate City Staff the application shall be referred to the
Economic Development Authority for recommendation to the City Council for further
action.
B. The application for business subsidies shall request information required within the
City’s policies on the particular form of subsidy including but not limited to; a
detailed description of the project; a preliminary site plan; the amount of business
subsidy requested; the public purpose of the project; the number and types of jobs
to be created; the wages and benefits to be paid new employees; and verifiable
funding sources and uses.
\\Trout\CommDev\Economic Development\TIF\Business Subsidies\M.V. Business Subsidy Policy 5.12.03 Final.doc
Item No: 04
Meeting Date: January 4, 2016
Type of Business: Work Session
City of Mounds View Staff Report
To: Mounds View Economic Development Authority
From: Brian Beeman, Business Development Coordinator
Item Title/Subject: Review Revisions to the Business Subsidy Policy
Introduction:
At its November 20, 2015, meeting, the Economic Development Commission (EDC) reviewed the
Business Subsidy policy and is making the recommendation that the Economic Development
Authority (EDA) consider approving the proposed amendments. Since any changes to the Business
Subsidy policy requires a Public Hearing by the Council/EDA per State Statute, staff is requesting
that the Council review the policy first at a Council work session then hold the Public Hearing on
January 24, 2016 in conjunction with the EDA to consider adopting a resolution accepting the
amended policy.
Background:
As staff was reviewing the fee schedule and policies for 2016 in relation to Tax Increment Financing
(TIF) and Tax Abatements, it became apparent that the business subsidy and incentive policies
were outdated and in need of attention. As a result, staff is in the process of reviewing each of the
City’s financial incentive policies and will provide a recommended draft of each policy to the EDA for
review once the EDC has had a chance to review and recommend each policy.
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. Below is a summary of the changes.
Added a title page and table of contents. Included the dates of adoption and which authority
adopted the policy. This saves staff time from sorting through old sets of minutes and
packets to determine who and when the policy was last amended.
Throughout the document, deleted confusing and wordy language with simple clarifying
language.
When possible referred to the statute number instead of writing out the statutory language.
This way the policy does not have to change each time there is a change in statute.
I. Changed Tax Rebate Financing back to original statutory name of Tax Abatement
II. Added the definition of a “Business Subsidy” per current statue.
Since the statutory criteria of a Public Hearing changed, it was easier to spell out the instances
where a Public Hearing would not be required rather than when it would be required.
III. Added additional instances of public purpose objectives and removed any reference to housing.
Business Subsidy Policy Report
January 4, 2016
Page 2
IV. Added D. giving a guideline of excess fair market value but leaving discretion to the EDA on a
case-by-case basis.
Added H. “minimum” assessment. This language is recommended since many cities were
caught with a negative increment during the housing crisis. Going forward, adding a minimum
assessment in Business Subsidy Policies protects the city by maintaining a minimum threshold
to base the property valuation and eventual increment.
Added K. this spreads the risk among other taxing jurisdictions.
V. Added A. criteria for retail or service business.
Under C. Clarified the meaning of “retention” since this often creates confusion.
D. Defined, “Benefit Date”. This creates confusion in policies that don’t define the benefit date.
E. Specified the minimum wage rate to be considered a new or retained job must be the greater
of at least $15.00 per hour or 150% of state or federal minimum wage.
VII. Simplified the application process and procedure. Added, $3,000 non-refundable application fee
and $10,000 deposit to cover consulting, legal, fees etc.
Mounds View’s existing policy was structured around another city’s Business Subsidy Policy which
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. Scott Riggs, City Attorney and
Ehler’s, the City’s financial consultant, has reviewed the policy.
Recommendation:
1. Review the Mounds View Business Subsidy Policy (attached) and provide direction to staff,
highlighting any recommended changes, if any.
2. If accepted, staff will make any recommended changes and have the updated policy ready for
the January 24, 2016 joint Council/EDA meeting and Public Hearing.
Respectfully submitted,
________________________
Brian Beeman
Business Development Coordinator
Attachments:
1. Mounds View Business Subsidy Policy (Proposed Draft Amendment 2016)
2. Mounds View Business Subsidy Policy (Existing Original Adopted May 2003)
Item No: 5
Meeting Date: January 4, 2016
Type of Business: Work Session
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Review Results of the Organized Collection Telephone Survey
Introduction:
The City Council has agreed to work with the Morris Leatherman Company to prepare and
conduct a telephone survey of 400 Mounds View residents in an effort to ascertain resident
opinion on the issue of organized collection. A flyer was sent to utility account holders and an
article printed in the Mounds View Matters to inform the residents of the impending survey,
which was planned for the first week of December. The survey has been completed and a
summary has been prepared by the company for the City’s consideration.
Discussion:
The survey results, which are attached for the Council to review, indicate that 35% of
respondents would support organized collection while 53% are opposed to it, with 13% unsure
or unresponsive to the question. In addition to the telephone survey, staff collected survey
results from residents who chose to proactively take the survey, either online or by picking up a
survey document at City Hall. The results of the proactive survey, which may not be statistically
valid, reflect a similar breakdown of sentiment regarding organized collection.
Finally, staff collected responses from residents via email who wrote in to share their opinions.
The breakdown of opinion via email correspondence represents the same as the telephone
survey and the online / paper copy survey results. 52 residents wrote in, three of which were not
verified with an address, leaving 49 opinions to draw from. Of those indicating definitely one
way or the other, 40% supported Organized Collection while 60% were opposed. Many
residents expressed concern about their rates increasing, or services changing, or their current
hauler not being chosen. A few who expressed opposition or no opinion admitted they could be
supportive if the negotiated rates were substantially better than existing rates. Some simply
responded that their support would depend on other factors, such as senior pricing, smaller
cans, pricing guarantees, level of service, etc. Naturally, we cannot predict what the rates could
be without going through the process.
Recommendation:
Review and discuss the survey results and provide direction to staff.
Respectfully submitted,
________________________
James Ericson
City Administrator