6.0. EDSR 04-10-2006 - Laserfiche WebLink

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• federal assistance until assistance has been repaid to, and reinvested by, the state or local government agency (once assistance has been repaid to and reinvested by a government agency it is subject to the reporting requirements outlined in the statute); • business loans and loan guazantees of $75,000 or less; and, • federal loan funds provided through the United States Departtrtent of Commerce, Economic Development Administration until assistance has been repaid to, and reinvested by, the state or local government agency (once assistance has been repaid to and reinvested by a government agency it is subject to the reporting requirements outlined in the statute). / Four of the types of financial assistance excluded from the definition of business subsidies aze subject to different reporting requirements under Minn. Stat. §1167.994, Subdivision 7. These types of assistance include: • property polluted by contaminants as defined in Minn. Stat. §1167.552, subdivision 3 (i.e. brownfields); • assistance provided for the sole purpose of renovating building stock or bringing it up to code, and assistance provided for designated historic preservation districts, if the assistance is 50 percent or less of the total cost; • assistance for pollution control or abatement, including assistance for a tax increment financing hazazdous substance subdistrict as defined under Minn. Stat. §469.174, subdivision 23; and, • assistance for a TIF soils condition district as defined in Minn. Stat. §469.174, subdivision 19. What is required in order to award a business subsidy? / A business subsidy agreement may not be signed on or after August 1, 1999, until the grantor has held a public hearing on, and adopted criteria for, awarding business subsidies. The criteria may not be adopted on a case by case basis. / The criteria must set specific minimum requirements that recipients must meet in order to be eligible to receive a business subsidy and also include a specific wage floor for wages paid for the jobs created. The wage floor may be stated as a specific dollaz amount or may be stated as a formula that will generate a specific dollaz amount. / A grantor may deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the department. A copy of [he criteria must be submitted to Department of Trade and Economic Development along with the firs[ annual report following the enactment of this section or with the firs[ annual report after i[ has adopted criteria, whichever is eazlier. / A granting agency that adopted criteria prior to May 1, 2000, that complied with Minn. Stat. §1167.994, Subdivision 2, has until May 1, 2003, to comply with the criteria requirements added in §1167.994, Section 3, Subdivision 2. / The law outlines 8 elements that must be included in business subsidy agreements: • a description of the subsidy, including the amount and type of subsidy, and type of district if the subsidy is TIF (calculate TIF agreements in the present value); • a statement of the public purposes for the subsidy; • measurable, specific, and tangible goals for the subsidy; • a description of the financial obligation of the recipient if goals aze not met; • a statement of why the subsidy is needed; • a commitment to continue operations in the jurisdiction where the subsidy is used for five years after the benefit date; • the name and address of the pazent corporation of the recipient, if any; and, • a list of all financial assistance by all grantors for the project. Department of Trade and Economic Development Page 2 of 6 January 22, 2003