CC PACKET 09071999 - Laserfiche WebLink

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44- DRAFT 4DRAFT . CITY OF ST. ANTHONY BUSINESS SUBSIDIES POLICY 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. Public Hearing to Adopt Business Subsidy Criteria. The new statute states that as a granting authority,the City cannot sign a business subsidy agreement until the City 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. Business Subsidy Agreement. A recipient subsidy agreement, incorporating criteria developed from the initial public hearing establishing the City's awarding criteria, must include the following: 1. Wage and job creation/retention goals and deadlines (within 2 years) 2. Description of the subsidy requested a. the amount b. type of subsidy (i.e., TIF) C. type of district, if TIF 3. Statement of public purposes for the subsidy. Increasing the tax base is not considered a public purpose. Job retention may be used if job loss is irr,m;,,ent. 4. Goals for the subsidy 5. Reason(s) why the subsidy is needed 6. Written commitment to continue operations at the site where the subsidy was used for at least 5 years after the receipt of the subsidy 7. Description of the financial obligation if the recipient fails to meet the goals of the subsidy agreement. An extension of 1 year may be granted after a public hearing. Failure to meet the goals of the subsidy precludes the recipient from receiving other business subsidies for 5 years. 8. The name and address of the parent corporation, if any 9. List of all financial assistance and grantors for the project 10. Business subsidies in the form of grants must be structured as forgivable loans 11. If the business subsidy benefits more than one recipient, the grantor must assign a portion of the business subsidy to each recipient that signs the subsidy agreement . 12. 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.