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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 /> Minn.`tat.;; 116J.993 to State law defines"business subsidy"or"subsidy"as a state or local <br /> 1 16J.995. g overnment agency grant,contribution of personal property, real property, <br /> Minn.Stat. 1167.993,svbd.3. <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 /> Minn.`tat.§t 16J.9K s ubds.5, Prior to awarding a business subsidy of more than$150,000 (and as defined <br /> 11. by law)to any business,a city and any Housing and Redevelopment <br /> Minnesota Deparmient of Authority(HRA),Economic Development Authority(EDA), port authority, <br /> Emplopilent and Economic <br /> Development(DEED). and nonprofit created by a local government must hold a public hearing and <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.stat.s 1167.994,subd.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 CITIES 15:3 <br /> This chapter last revised 12/2010 <br />