HomeMy WebLinkAboutResolution No. 239-04 RESOLUTION
WHEREAS, as part of the law governing the State of Minnesota's JOBZ program,
participating communities awarding business subsidies under the program must adopt specific
JOBZ business subsidy criteria.
NOW, THEREFORE, BE IT RESOLVED that the City of Rochester hereby adopts the
following JOBZ Business Subsidy Policy and Criteria:
Preamble. Whenever the City of Rochester agrees to voluntarily forfeit tax or other
revenue that benefit private development projects, those projects should create the greatest
number of living wage jobs. City policy makers must keep the critical need for living wage jobs
the priority whenever public dollars are invested in a private business or development project.
Business Subsidy Public Purpose. The public purposes of this policy shall be to
accomplish the following on behalf of the City of Rochester.
1. Enhance economic growth
2. Create high quality jobs
• 3. Retain high quality jobs
4.Stabilize the community
5.Such other objectives as may be established by the City Council
This policy is adopted in compliance with M.S. § 116J.994 Subd. 2. A copy of the policy shall
be submitted to the Department of Employment and Economic Development along with the
first annual Business Subsidy report.
Business Subsidy Implementation. The City of Rochester will focus its business
subsidy assistance to businesses which demonstrate a clear and ongoing commitment to the
community by providing living wage jobs to their employees by giving priority to those
businesses over businesses that have not traditionally paid living wages.
The City of Rochester will focus its business subsidy assistance only to businesses which
agree to comply with annual business subsidy reporting requirements as required by Job
Opportunity Building Zone (JOBZ) statute M.S. §§ 469.310 - 469.320; and/or as required by
the Business Subsidy statute M.S. §§ 116J.993 - 116J.995.
Although the primary purpose of this policy is the creation of living wage jobs, we cannot
achieve our economic development goals without a trained and ready workforce and adequate
child care. The city will encourage businesses to obtain trained and work-ready employees
through the DEED Workforce Development Centers; MNSCU and other services; and to
facilitate access to child care.
•I. DEFINITIONS
"Authorized Business Subsidy Signatory" means the Mayor and City Clerk, who are authorized
by this Policy to execute business subsidy agreements on behalf of the City of Rochester.
"JOBZ Business Subsidy" means tax exemptions or tax credits available to a qualified
business located in a job zone under the Job Opportunity Building Zone (JOBZ) statute M.S.
§§ 469.310 - 469.320;
"Business Subsidy" means a state or local government agency grant, contribution of personal
property, real property, infrastructure, the principal amount of a loan at rates below those
commercially available to the recipient, any reduction or deferral of any tax or any fee, any
guarantee of any payment under any loan, lease, or other obligation, or any preferential use of
government facilities given to a business, and as defined by the Business Subsidy statute
M.S. §§ 116J.993 - 116J.995. Business subsidy does not include the following:
1. assistance of less than $25,000.
2. assistance that is generally available to all businesses or to a general class of
similar businesses, such as a line of businesses, size, location or similar general
criteria;
3. public improvements to buildings or lands owned by the City of Rochester that
serve a public purpose and do not principally benefit a single business or defined
group of businesses at the time the improvements are made;
4. property polluted by contaminants being redeveloped as defined in M.S. § 116J.552,
subd. 3.
5. assistance provided for the sole purpose of renovating old or decaying building
stock or bringing it up to code and assistance to designated historic preservation
sites or districts, provided that the assistance is equal to or less than 50% of the
total cost of the development;
6. assistance to provide job readiness and training services;
7. assistance for housing;
8. assistance for pollution control or abatement, including assistance from a TIF
hazardous substances subdistrict;
9. assistance for energy conservation;
10. tax reductions resulting from conformity with federal tax law;
11. workers compensation and unemployment compensation;
12. benefits derived from regulation;
13. indirect benefits derived from assistance to educational institutions;
14. funds from bonds allocated under M.S., Chapter 47A refunding bonds and
501(c)(3) bonds;
15. assistance for collaboration between a Minnesota higher education institution and a
business;
16. assistance from a tax increment financing soils condition district as defined under
M.S.469.174, subd.19;
• 17. redevelopment when the Recipients or Qualified Business' investment in the
purchase of the site and in site preparation is 70 percent or more of the assessor's
current years estimated market value;
• 18. general changes in tax increment financing law and other general tax law changes
of a principally technical nature;
19. federal assistance until the assistance has been repaid to and reinvested by the
local governmental unit;
20. funds from dock or wharf bonds issued by a seaway port authority;
21. business loans or loan guarantees of $75,000 or less; and
22. federal loan funds provided through the U.S. Economic Development
Administration.
"Business Subsidy Report" means the annual report submitted by the LGU required to comply
with M.S. § 116J.994 Subd. 7. (b).
"Criteria" means the equitably applied, uniform standards by which the City bases its decision
to award any business subsidy to a private business or development project establishing a
business and creating jobs in the City of Rochester.
"DEED" means Minnesota Department of Employment and Economic Development.
"Economic Development Agent" means the city department that is empowered to solicit,
negotiate and form business subsidy agreements on behalf of the City of Rochester ".
"Living Wage Job" shall mean a job which pays wages and health benefits that total at least
the rate of 110% of the current poverty level for a family of four.
10"Local Governmental Unit" hereinafter LGU, means the statutory or home rule charter city,
county, town, iron range resources and rehabilitation agency, regional development
commission;
"Qualified Business" means a person that carries on a trade or business at a place of business
located within a Job Opportunity Building Zone as referenced in M.S. § 469.310 Subd. 11; and
complies with the reporting requirements specified by M.S. § 469.313 Subd. 2. (5); and shall
comply with the criteria in Section II.C. of this policy; and shall also mean "Recipient" as
defined by Business Subsidy law. A qualified business shall not include a retail business, a
low-wage service business, an agricultural production business, or a business that pays less
than the living wage defined in this agreement.
"Recipient" means any business entity that receives a business subsidy as defined by M.S. §
116J.993, and that has signed a JOBZ Business Subsidy Agreement with the City of
Rochester.
"Relocating Business" A business relocating from another Minnesota non-JOB Zone location.
"Relocation Agreement" means a binding written agreement between a relocating qualified
business and the commissioner of DEED pledging that the qualified business will either: (a)
increase full-time for full-time equivalent employment in the first full year of operation within the
job opportunity building zone by at least 20 percent, or (b) make a capital investment on the
property equivalent to 10% of the gross revenues of operation that was relocated in the
immediately preceding taxable year; and provides for repayment of all tax benefits if the
requirements of (a) or (b) are not met.
•
. ''Subzone" means the parcel or parcel of land designated by the Commissioner of Employment
and Economic Development within a Job Opportunity Building Zone within the boundaries of
the City of Rochester to receive certain tax credits and exemptions specified under M.S. §
469.310-469.320.
"Zone" means a Job Opportunity Building Zone or an Agricultural Processing Facility Zone
designated by the commissioner of Employment and Economic Development under M.S. §
469.314.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS DAY OF 12004.
' R SIDENT OF SAID COMMON COUNCIL
ATTEST: ,� IY1
CITY C ER
APPROVED THIS DAY OF YO CLAA , 2004.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res2000\Resolu.BusSubPolicy
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