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CHAPTER 1 s Mi>1>l. star. § 11~1.ss3, st,bd. 3. Types of assistance meeting the definition of a business subsidy include: ~vhl,zt. star. § 4ss.lss. grants; contributions of real or personal property or 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. M~a~. stl,t. s a l ~JSS~, ~a~d. t ~. The law imposes a 180-day statute of limitations on actions to challenge a city after approval of a business subsidy agreement. Citizens or owners of taxable property in a city may bring a civil action against the city for failure to comply with the business subsidy laws. Cities should therefore consult closely with the city attorney before awarding a business subsidy. ~l;nr,. star. ~ u~:r.<~<~~, sah~l. ~. There are several exceptions to this definition, including a subsidy of less than $150,000; subsidies for redevelopment, pollution control and land clean up, housing, industrial revenue bonds, utility property tax abatements and other similar programs. M;r,,,. slat- 411-'.`~y4, s~hd~. ~+, Recipients must provide grantors with information on their progress toward '' ~'' the goals outlined in the agreement. The goals for increasing jobs or retaining jobs must result in local job creation and job retention. Grantors must submit the annual Minnesota Business Assistance Form (MBAF) to the Department of Employment and Economic Development (DEED) by April 1 each year for each business subsidy agreement. Local government agencies in cities with a population of 2,500 or more must submit an MBAF, regardless of whether they have awarded business subsidies. Local government agencies in cities with a population of 2,500 or less are exempt from filing the MBAF if they have not awarded a subsidy in the past five years. B. Financial assistance M,I~~. s,~t. a 1lb.rss~, subd_ 2. Cities may offer "fmancial assistance" in the form of a business loan of "~,1"'?'' star.'. l t~~ss~a, 5"bd' ``' more than $25,000 or a guarantee of $75,000 or more, but less than $150,000 required to constitute a business subsidy. If a city offers such financial assistance it must develop criteria and set minimum wage floor levels as prescribed in business subsidy law. Cities granting such financial assistance must submit business assistance reports to the Department of Employment and Economic Development (DEED) within one year of granting the assistance. II. City development tools A. General city development powers Minn. star. ~ ~ss.a~l. Cities have authority to aid and cooperate in the planning, construction, or operation of economic development, and housing and redevelopment projects. The following is a partial list of actions cities may take, with or without compensation: s:4 LEAGUE OF MINNESOTA CITIP.S This chapter last revised 12/2010