HomeMy WebLinkAboutResolution No. 216-03 ~Z { J
• RESOLUTION
WHEREAS, in 1999, the Minnesota Legislature adopted a business subsidy law that
requires governing bodies that provided business subsidies to adopt business subsidy criteria.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Rochester that the City adopts the attached Business Subsidy Criteria.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS 215-r DAY OF APXJ , 2003.
PRESIDENT OF SAID COMMON COUNCIL
ATTEST:
CITY CLERK
APPROVED THIS 22cl--1 DAY OF Aoxe-Q , 2003.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res2000Wdopt.BusSubsidy.1
•
City of Rochester, Minnesota
Business Subsidy Criteria
April 21, 2003
1 PURPOSE AND AUTHORITY
1.1 The purpose of this document is to establish the criteria for the City of Rochester,
Minnesota(the "City") for granting of business subsidies for private
development. The criteria shall be used as a guide in the processing and reviewing
of applications requesting business subsidies. The business subsidy criteria
contained herein amends the City's business subsidy criteria/policy adopted on
August 16, 1999.
1.2 The City's ability to grant business subsidies is governed by the limitations
established in Minnesota Statutes 116J.993 through 116J.995 (the"Statutes").
1.3 Unless specifically excluded by the Statutes,business subsidies include grants by
state or local government 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 other
obligation,or any preferential use of government facilities given to a business.
1.4 These criteria are to be used in conjunction with other relevant policies of the
City.
1.5 The City may deviate from these criteria by documenting in'writing the reason(s)
for the deviation. The documentation shall be submitted to the Department of
Trade and Economic Development with the next annual report.
1.6 The City may amend this document at any time. Amendments to these criteria
are subject to public hearing requirements contained in the Statutes. The City
may waive provisions of these criteria without holding a public hearing.
2 PUBLIC PURPOSE REQUIREMENT
2.1 All business subsidies must meet a public purpose.
2.2 The creation or retention of jobs may be, but is not required to be, a public
purpose for granting a subsidy. The determination that jobs are not a public
purpose for the subsidy and that the related wage and job goals for a subsidy shall
• be zero may be made following a public hearing on that question.
• 2.3 Job retention may only be used as a public purpose in cases where job loss is
specific and demonstrable. The City shall document the information used to
determine the nature of the job loss.
2.4 The creation of tax base shall not be the sole public purpose of a subsidy.
2.5 The wage floor for wages to be paid for the jobs created shall be 110% of the
established federal minimum wage level. The City will seek to create jobs with
higher wages as appropriate for the overall public purpose of the subsidy.
3 BUSINESS SUBSIDY APPROVAL CRITERIA
3.1 All new projects approved by the City 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.
3.2 To be eligible to receive a business subsidy, the recipient must meet the following
minimum requirements:
a. The subsidy must achieve a public purpose.
b. The project must comply with local plans and ordinances.
C. The recipient shall provide information demonstrating that granting the
• subsidy is necessary for the proposed development to occur.
d. The recipient must enter into an agreement pursuant to these criteria and
the Statutes.
3.3 A recipient of a business subsidy must enter into a subsidy agreement with the
City as described in Section 4.
3.4 A recipient of a business subsidy must make a commitment to continue operations
within the City for at least five years after the benefit date.
3.5 Any business subsidy will be at the lowest possible level and for the least amount,
of time necessary, after the recipient maximizes the use of private debt and equity,
financing first.
4 SUBSIDY AGREEMENT
4.1 In granting a business subsidy, the City 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 failure to meet
goals required by the Statutes.
4.2 The subsidyagreement ma be incorporated into a broader development
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agreement for a project.
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