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HomeMy WebLinkAbout7. Adoption of Business Subsidy Policy Under MS Sections 116J.993 to 116J.995CITY OF ROSEMOUNT +' EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: April 4, 2000 AGENDA ITEM: Adoption of Business Subsidy Policy AGENDA SECTION: PUBLIC HEARI PREPARED BY: Thomas D. Burt, City Administrator AGENDi ATTACHMENTS: Business Subsidy Criteria APPROVED In the 1998 legislative session, the Business Subsidy Act was adopted, which requires all local governments to have a policy for public subsidies in excess of $100,000. The Port Authority previously reviewed the attached policy. A public hearing is required for final adoption of the policy. Once the policy is adopted, any future business subsidies must have a public hearing to identify their proposed subsidies. The City's Attorney has recommended both the Port Authority and City Council adopt this policy. There is presently no project pending for City Council review, but rather being proactive in the event of a future project. RECOMMENDED ACTION: MOTION to approve the Business Subsidy Criteria Policy for the City of Rosemount. COUNCIL ACTION: 4 CITY COUNCIL IN AND FOR THE CITY OF ROSEMOUNT, MINNESOTA Business Subsidy Criteria 1. PURPOSE 1.01 The purpose of this document is to establish the City Council's criteria for granting of business subsidies, as defined in Minnesota Statutes I I6J.993, Subdivision 3, for private development. This criteria shall be used as a guide in processing and reviewing applications requesting business subsidies. 1.02 The criteria set forth in this document are guidelines only. The City Council reserves the right in its discretion to approve business subsidies that vary from the criteria stated herein if the City Council determines that the subsidy nevertheless serves a public purpose. 1.03 The City Council may amend the business subsidy criteria at any time. Amendments to these criteria are subject to public hearing requirements pursuant to Minnesota Statutes, Section 116J.993 through 116J.994. 2. STATUTORY LIMITATIONS 2.01 In accordance with the Business Subsidy Criteria, Business Subsidy requests must comply with applicable state statutes. The City Council ability to grant business subsidies is governed by the limitations established in Minnesota Statutes 116J.993 through 116J.994. 3. PUBLIC POLICY REQUIREMENT 3.01 All business subsidies must meet a public purpose other than increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is imminent and demonstrable. 4. BUSINESS SUBSIDY APPROVAL CRITERIA 4.01 All new projects approved by the City Council 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 rights on the part of any potential developer or the City Council. 4.02 The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to the plan and ordinances must be under active consideration by the City at the time of approval. 4.03 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 developer's profit margins on a project. 4.04 Prior to approval of a business subsidy's financing plan and when deemed appropriate by the City Council, the developer shall provide any required market and financial feasibility studies, appraisals, soil boring, information provided to private lenders for the project, and other information or data as requested. 4.05 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. 4.06 Recipients of any business subsidy will be required to meet wage and job goals determined by the City Council on a case -by -case basis, giving consideration to the nature of the development, the purpose of the subsidy, local economic conditions, and situational circumstances. 4.07 The City Council will utilize Tax Increment Financing to support the community's long -term economic, redevelopment, and housing goals. 4.08 Each Tax Increment Financing subsidy will be analyzed and evaluated by the City Council. Each project shall be measured against the general criteria in Sections 1 through 5 and the specific criteria in the City Council Tax Increment Financing Policy.