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SEP 16 '99 t9B- 52AM EFLERS & ASSOCIATES r . a. r City of Hugo Busirsess Subsidy Criteria October x{,1999 PURPOSE AND AUTHORITY 1.01 The purpose of this document is to esWAO the criteda for the (qty of Hugo (the " C hntot') for granting of business subsidies for private development. Tbess criteria shall be used as a guide in the processing and reviewing applications requesting business subsidies. 1.02 The City of Hugo's ability to grant business subsidies is governed by the limitations establisiaed in Minnesota Statutes 1164 993 through 116J.994 (the `Statutes'). .. ___.. ,.., ..,..._. Vii. ,�sese ari_teda arc to Ue nsocl_itt.eontmctiou vnth other relevant policies Ciracnor. • _ .....��.. . a:•.+-•..•� ..r��'.. ._..,.:.�., :. :....: ,..,... ...,....J.=.1=.. Of the W.,. .3 1.The criteria set fords in this document are guiddlines only. The Grantor reserves the rig�'� 04 in its discxetion to approve business subsidies that vary from the criteria stated herein if the (}raptor daamunes that the =bddy nevertheless serves a public purP0• 1.05 • The Grantor may amend this doc ument.at any fte. Amendments to these criteria are subject to public heating regairements contained in the Stab ter. 2 PUBLIC POLICY REQUIREMENT 2.01 All business subsidies must meet a pubUc.purpose other than h=Ming the tax base. Job retention may only be used as a public purpose in cases where job loss is imminent and demonstrable 3 BUSINESS SUBSIDY APPROVAL C tITERIA 3.01 Unless $peeifacaUy excluded by the Statutes, business subsidies include graM by state or local goveruunent agencies, contributions of personal property, real property. infrastructure, the principal amount of a loan at rates below those commercially available to the recipient of the subsidy, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or otter obligation, or any pref=ntlal use of government facilities given to a business. 3.02 All new 'projects .approved by the City of Hugo should meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual fights on the part of any potential developer. 3.03 .The business subsidy shall be provided within applicable state legislative restrictions, debt limit guidelines. and other appropriate financial requirements and policies.