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CHAPTER 15 <br /> Minn. ,tat.4 116.1.993,SUbd.I. Types of assistance meeting the definition of a business subsidy include: <br /> Minn.stat.. 469.185. grants; contributions of real or personal property or infrastructure;the <br /> principal amount of a loan at rates below those cominercially available to <br /> the recipient; any reduction or deferral of any tax or any fee; any guarantee <br /> of any payment under any loan,lease or other obligation; or any preferential <br /> use of government facilities given to a business. <br /> Minn.stat.4 116.1.994,sn bd.1 1. The law imposes a 180-day statute of limitations on actions to challenge a <br /> city after approval of a business subsidy agreement. Citizens or owners of <br /> taxable property in a city may bring a civil action against the city for failure <br /> to comply with the business subsidy laws. Cities should therefore consult <br /> closely with the city attorney before awarding a business subsidy. <br /> Minn.5tat.4 116..993,SUN.3. There are several exceptions to this definition,including a subsidy of less <br /> than$150,000; subsidies for redevelopment,pollution control and land clean <br /> up,housing,industrial revenue bonds,utility property tax abatements and <br /> other similar programs. <br /> Minn.stat.4 1163.994,S«bds.4. Recipients must provide grantors with infonnation on their progress toward <br /> a. the goals outlined in the agreement. The goals for increasing jobs or <br /> retaining jobs must result in local job creation and job retention. Grantors <br /> must submit the annual Minnesota Business Assistance Form(MBAF)to the <br /> Department of Employment and Economic Development(DEED)by April 1 <br /> each year for each business subsidy agreement. Local government agencies <br /> in cities with a population of 2,500 or more must submit an MBAF, <br /> regardless of whether they have awarded business subsidies. Local <br /> government agencies in cities with a population of 2,500 or less are exempt <br /> from filing the MBAF if they have not awarded a subsidy in the past five <br /> years. <br /> B. Financial assistance <br /> Minn.stat.Y t 16.1.994,Snbd.2. Cities may offer"financial assistance"in the form of a business loan of <br /> Minn.stst.§ 116J.994,Snbd.s. more than$25,000 or a guarantee of$75,000 or more,but less than <br /> $150,000 required to constitute a business subsidy. If a city offers such <br /> financial assistance it must develop criteria and set minimum wage floor <br /> levels as prescribed in business subsidy law. Cities granting such financial <br /> assistance must submit business assistance reports to the Department of <br /> Employment and Economic Development(DEED)within one year of <br /> granting the assistance. <br /> II. City development tools <br /> A. General city development powers <br /> Minn.scat.§469.041. Cities have authority to aid and cooperate in the planning,construction,or <br /> operation of economic development,and housing and redevelopment <br /> projects.The following is a partial list of actions cities may take,with or <br /> without compensation: <br /> 15:4 LEAGUE OF MINNESOTA CITIES <br /> This chapter last revised 12/2010 <br />