CC PACKET 09071999 - Laserfiche WebLink

Home Browse Search

4z STAFF REPORT . To: Michael Morrison, City Manager From: Kim Moore-Sykes, Management Assistant Date: August 2, 1999 Subject: Minnesota Business Subsidies Law, 1999 As of August 1, 1999, local governments with the authority to provide business subsidies to for-profit businesses with state or local government funds are subject to the newly revised Business Subsidies Law. The new statute, Minn. Stat. 116J.993 to 116J.995 replaces Minn. Stat. 116J.991, by adding new reporting requirements and procedures. Basically, the new statute states that as a granting authority, a local government, as `grantor' cannot sign a business subsidy agreement until the grantor holds a public hearing on and adopts criteria for awarding of business subsidies. The set of criteria must include a policy, regarding the wages to be paid for jobs created. The Commissioner of Trade and Economic Development is available to assist cities in developing these criteria.- A recipient subsidy agreement needs to be developed incorporating criteria developed from the public hearing and can be flexible to accommodate the needs of the City, but must include the following wage and job creation/retention goals; description of the subsidy requested; statement of public purposes for the subsidy; goals for the subsidy; reason(s) why the subsidy is needed; and other written information about the recipient. The subsidy agreement must be signed by both the City and the recipient and approval by the City Council is required. No public notice or hearing is required unless the subsidy is $100,000 or more. The subsidy agreement also must include in addition to wage and job goals, the number of jobs created and may include separate goals for the number of full-time and part-time jobs; where job loss is imminent and demonstrable, goals for the number of jobs retained and wage goals for jobs created and retained. These goals must be attained within 2 years of receiving the subsidy. The City is required to publish a public notice for requests that exceed $100,000 in the local newspaper "of general circulation". The notice must identify the location of where information about the business subsidy request and a copy of the subsidy agreement is available. The published notice "must be sufficiently conspicuous in size and placement to distinguish the notice from the surrounding text." The City is also required to make the information available in printed paper copies and if possible on the InterNet. The City is also required to monitor the progress of the recipient in achieving agreement