The URL can be used to link to this page

Home My WebLink About1999.10.04 RESO 1999-0016RESOLUTION 1999-16 A RESOLUTION ADOPTING BUSINESS SUBSIDY CRITERIA WHEREAS, Minnesota Statutes, Sections 1167.993 through 1167.995 (the "Statutes") require the adoption of criteria for the granting of business subsidies as defined in the Statutes; and, WHEREAS, the City of Hugo (the "City') has determined that it is necessary and appropriate to adopt business subsidy criteria pursuant to the Statutes; and, WHEREAS, the City has performed all actions required by law to be performed prior to the adoption and approval of the proposed business subsidies, including the holding of a public hearing upon published notice as required by law on October 4, 1999. NOW, THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the City of Hugo, Minnesota, that the business subsidy criteria, contained in Exhibit A of this resolution are hereby approved, ratified, established, and adopted, and shall be placed on file at the City. Dated: October 4, 1999 i � .. /um M-4 ATTEST: Mary Creager, City C1961 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 $peeifacaUy excluded by the Statutes, business subsidies include graM by state or local goveruunent agencies, contributions of personal property, real property. infrastructure, the principal amount of a loan at rates below those commercially available to the recipient of the subsidy, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or otter obligation, or any pref=ntlal use of government facilities given to a business. 3.02 All new 'projects .approved by the City of Hugo should meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual fights on the part of any potential developer. 3.03 .The business subsidy shall be provided within applicable state legislative restrictions, debt limit guidelines. and other appropriate financial requirements and policies. SEP 10 '99 OB: 53 M EH..ERS & ASSOCIATES r-. w r Qty of Hugo October , 1999 3.04 The project must be in accord with the Comprehensive Plan and Zoning Ordmanves, or required changes to tlw plan and Ordinances must be under active consideration by the City at the time of approval. 3.05 Business subsidies will not be provided to projects that Have the financial feasibility to proceed without the benefit of the~ subsidy. In effect, business subsidies will not be provided solely to broaden a developers profit margins on a project. Prior to consideration of a business subsidy request, the Grantor may undectake an independent underwriting of the project to help en$= that the request for assistance is wand. 3.06 Prior to approval of a business subsidy, the developer shall provide any required mad mt and financial feasibility studies, appraisals, soli boring, inafort mdOu provided to private ibM r the or� iti lihancial- consultants may requirie in order to proceed with an indqwdent underwriting. 3.07 Any developer requesting a business subsidy sbould able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. 3.08 The developer must retain ownership of the projed at least long enough to complete it, to stabilize its occupancy p establish the project management. and to initiate repayment of the business subsidy, if.. applicable. 3.09 A recipient of a business subsidy must enter into a subsidy agreement with the Grantor as described in Section 4. 3.10 A recipient of a business subsidy must make a commitment to continue operations at the site where the subsidy is used for at least five years after the benefit date. 3.11 Any business subsidy will be the lowest possible level and least amount of time necessary, after the recipient maximizes the use of private debt and equity financing fust. 3.12 Recipients of any business subsidy will be required to mat wage and job goals determined by the Grantor on a case by -case basis, giving consideration to the nature of the development, the purpose of the subsidy, local economic conditions and similar factors. 4 Subsidy Agreement 4.01 in granting a business subsidy, the Grantor shall enter into a subsidy agreement with the recipient that provides the information, wage and job goals, commitments to provide necessary reporting data and recourse for fail to meet goads required by the Statutes. SEP 10 199 08-53AM EHLERS & FSSxiHiLb r. 1 0' 1 City of Hugo October , 1999 4.02 IU subsidy SV=M=t may be fiworporated into a broader development agreement for a projem 4 3 PRINTER'S AFFIDAVIT OF PUBLICATION AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA) County of Ramsey ) § I, the publisher, or the publisher's designated agent, being duly sworn, on oath state that I am the publisher, or the publisher's designated agent and an employee of the newspaper known as The White Bear NOTICII °F'IC HMIWIPress, and that I have full knowledge of the facts which are stated CITY OF HUGO C0UM Y� WA§H NQT%l below: 'STATE EI11181lSOTA NancE is HEREBY enfm that the Cies (A) The newspaper has -complied with all of the requirements constitut- CouncN of that City of Hupo, Minnesota. will hold a p*k hewing an 6dobir 4j 191111, at ing qualification as a qualified newspaper, as provided by Minnesota appraod i Illy 7:00 pin. at to City HIA Hug% MNwmata, relating to the establishn A of Statute 331A.02, 331A.07, and other applicable laws, as amended. business subsidy criteria, pursuant to Minnesota statute*. Sections 116J.993. (B) The printed CITY OF HUGO through 1.16J.990. Copies of :the proposed business subsidy ar- .. an an Ale and avail- NOTICE OF PUBLIC HEARING able for pum tnOF md9 atthe dooms of the CRY of Hugo. which is attached was cut from the columns of said newspaper, and m inigrwtad persons oat► appear at the eaarino aria poser- their views .araly or pft was printed and published once each week, for successive weeks; 440 the oil in VjAft. Dated: septawkw ltiffi.1999 it was first published on WEDNESDAY , the 22 day of By Order of The city Cownel SEPTEMBER .19 9and was thereafter printed and published on CRY of Minnesota every -to and including , Clerk Published in the White • Boar Press the day of , 19___; and printed below is a �mntbsit'92,IM. copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice: aer:daf94PprANwxyz ?9ie�✓�e BY- TITLE- Publisher Subscribed and sworn to before me on this 22 dayof SEPTEMBER NOTMY MKIC - MINNESOTA otary c, sey C --- tj►, Minn. My commission expires January 31.2000. ------------------------------------------------------------------- RATE INFORMATION (1) Lowest classified rate paid by commercial users for comparable $ space. (Line, word, or inch rate) (2) Maximum rate allowed by law for $ the above matter. (Line, word, or inch rate) (3) Rate actually charged for the $ 6.00/INCH above matter. (Line, word, or inch rate)