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CHAPTER 15 <br />Chapter 15 <br />Community development and <br />redevelopment <br />This chapter describes the requirements for a city to establish criteria for <br />awarding business subsidies, addresses the various development agencies <br />cities may create, and provides a brief overview of state and federally <br />sponsored programs for encouraging development and redevelopment. Most <br />economic development tools can be applied to any size city. These tools are <br />interrelated, and a city may use several for one project. <br />I. Business subsidies or financial <br />assistance <br />A. Business subsidies <br />Mi1~z. scat. ; 1167.993 t~ State law defines "business subsidy" or "subsidy" as a state or local <br />1 ~~'~'~~~' overnment a enc ant, contribution of ersonal ro ert ,real ro ert <br />~~tinn. Stat. 1161.993, sul>d, 3. g g Y~ p p p Y p p Y~ <br />infrastructure, the principal amount of a loan at rates below those <br />commercially available to the recipient, any reduction or deferral of any tax <br />or any fee, any guarantee of any payment under any loan, lease, or other <br />obligation, or any preferential use of government facilities given to a <br />business in an amount greater than $150,000. <br />1-s;z,,,, scat. ~ l ls:r.`~`~a, t«hds. s, Prior to awarding a business subsidy of more than $150,000 (and as defined <br />1 l • by law) to any business, a city and any Housing and Redevelopment <br />Minnesota l~epazttr,ent of Authority (HRA), Economic Development Authority (EDA), port authority, <br />Fmplop"'e°t and Fey"""~„`, and nonprofit created by a local government must hold a public hearing and <br />Developz7lent {L7EiF.I}). <br />adopt criteria for awarding business subsidies. The public hearing notice <br />must include a statement that either a resident or a city property owner may <br />file a written complaint with the city if the city does not follow the business <br />subsidy law. Written complaints must be filed within specified timelines. <br />The criteria must include a policy regarding the wages to be paid for any <br />jobs created. Copies of the criteria adopted by cities are found on the <br />Minnesota Department of Employment and Economic Development <br />(DEED) web site <br />Minn, star. § l ] 67.994, se~hd. 3. Once the criteria are established, the grantor and the recipient must enter <br />into subsidy agreements that meet the statutory requirements. The agreement <br />must include an obligation to repay part or the entire subsidy if the recipient <br />does not meet its obligations. <br />HANDBOOK FOR MINNESOTA CTTIES 15:3 <br />This chapter last revised 12/2010 <br />