6.0. EDSR 04-10-2006 - Laserfiche WebLink

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• Specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies. Beyond the minimum criteria required by law, under the City's Business Subsidy Policy recipients will also be required to meet the City's specific guidelines fox the particular form of subsidy being requested. Specific wage floor for the wages to be paid for the jobs created ox retained. The wage floor may be stated as a specific dollar amount ox may be stated as a formula that will generate a specific dollar amount In 2002 the City established a wage floor of $15.00 per hour exclusive of benefits for new or retained jobs. Issues for Discussion Staff requests the EDA's direction on the following Business Subsidy Policy issues: 1. Should the City establish a specific employment goal to qualify for a particular subsidy amount (in the form of a specific dollar amount of assistance per job created)? If so, what level of assistance the City expect fox job creation? The following employment criteria curxenfly exist within the respective city policies: • Tax Increment Finance Pohcv o Economic Development Districts -Creation of 1 full-time job per $25,000 of TIF • Tax Abatement Policy o No specific job criteria, although most recently staff has administered the Tax Abatement proposals based on a level of $25,000 of assistance (future value) per new job to be created as a result of the project. • Economic Development Micro-Loans o Industrial Incentive Pxogxam Loans up to $75,000 - 1 full-time job per $20,000 loaned with a minimum average wage of $10.00 per hour excluding benefits required by law. o Industrial Incentive Program Loans over $75,000 - Shall meet the job and wage requirements of the City's Business Subsidy Policy. o Redevelopment Program Loans up to $50,000 - Exempt from job and wage goals 2. How should the City define a "qualifying job" under the employment goals? Under the standard most recently administered by staff for Tax Abatement projects only jobs to be created (at an hourly rate of $15) as a result of the project are considered as a "qualified" new job. Any existing jobs within the company being relocated were not included. If existing jobs were to be included in addition to created jobs the level of assistance per job on these projects actually ranged from approximately $2,700 to $4,200 of subsidy per new job.