6.0. EDSR 04-10-2006 - Laserfiche WebLink

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/ All subsidy agreements, in addition to other goals, must include: • goals for the number of jobs created, which may include separate goals for the number of part-time or full-time jobs, or, in cases where job loss is specific and demonstrable, goals for the number retained; and, • wage goals for the number of jobs created or retained. / Afrer a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals maybe set at zero. / Business subsidies must meet a public purpose which tray include, but may not be limited to, increasing the tax base. The law specifies that job retention may only be used as a public purpose in cases where job loss is specific and demonstrable, but does not otherwise restrict allowable public purposes (see examples on page 5). / Grantors must determine that the recipient is eligible to receive assistance by reviewing DTED's list of past recipients ineligible to receive a business subsidy because they failed to meet the terms of another subsidy agreement. / Before granting a business subsidy that exceeds $500,000 for a state government grantor and $100,000 for a local government grantor, the grantor must provide public notice and hold a hearing on the subsidy unless a heazing and notice on the subsidy is otherwise required by law. / If a business subsidy benefits more than one recipient, the grantor must assign a proportion of the subsidy to each recipient signing the agreement. If the grantor is a local government agency, the agreement must be approved by the local elected governing body, except for the St. Paul Port Authority and a seaway port authority. Also, subsidies in the form of grants must be structured as forgivable loans. For other types of business subsidies, the agreement must state the fair market value of the subsidy or other in-kind benefits. / In addition to any criteria developed in compliance with this law, agencies tray be subject to additional criteria required by specific assistance programs such as the Community Development Block Grant (HUD) and Minnesota Investment Fund programs. Agencies may or may not choose to address specific program criteria in the criteria developed in compliance with this law. What happens if a recipient does not meet business subsidy goals? / Business subsidy agreements must specify the recipient's obligation if the recipient does not fulfill the agreement. At a minimum, a recipient failing to meet goals must pay back the assistance plus interest or, at the grantor's option, to the account created under Minn. Stat. §1167.551 provided that repayment may be prorated to reflect partial fulfillment of goals. The interest rate must be set at the Implicit Price Deflator rate as defined under Minn. Stat. §1167.994, Subdivision 6. DTED will provide information on the Implicit Price Deflator on its website. / Recipients failing to fulfill business subsidy agreements may not receive business subsidies from any grantor for five years or until they have satisfied their repayment obligation, whichever occurs first. Who is required to report business subsidies, and how? / Recipients must provide grantors with information on their progress towazd goals outlined in the agreement, and will be subject to a penalty as defined in Minn. Stat. §1167.994, Subdivision 7(d) for failing to report. / Grantors must submit the annual Minnesota Business Assistance Form (MBAF) to DTED for each business subsidy agreement signed on or after January 1, 2002. DTED will ask grantors to file an MBAF each year for each agreement for two years afer the benefit date or until all goals outlined in the agreement have been met, whichever is later. Department of Trade and Economic Development page 3 of 6 Ianuary 22, 2003