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CHAPTER 1$ <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. Stat. §§ 116J.993 to State law defines "business subsidy" or "subsidy" as a state or local <br />116J.995; government agency grant, contribution of personal property, real property, <br />Minn. Stat. § 116J.993, subd. 3. 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. Stat. § 116J.994, subds. 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 Department of Authority (HRA), Economic Development Authority (EDA), port authority, <br />Employment and Economic and nonprofit created by a local government must hold a public hearing and <br />Development (DEED). <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. § 116J.994, sUba. 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 />', LEAGUE OF MINNESOTA CITIES <br />15:2 i <br />''his chapter last revised 12/1/2011 <br />I~ <br />