4.1. EDSR 01-31-2017 - Laserfiche WebLink

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ELIGIBLE ACTIVITIES RLF's may be used to fund a variety of business activities including: 1. Acquisition of land 2. Construction or rehabilitation of facilities 3. Site improvements 4. Utilities or infrastructure 5. Machinery and Equipment 6. Training 7. Working capital Advance approval from DEED is necessary if the local government would like to provide financing for activities not listed above. Approval is more likely to occur in projects that relate to business development and involve other local government funds. INELIGIBLE ACTIVITIES In contrast to federal MIF funds,there are industry limitations on how state MIF RLFs may be used. State MIF RLFs may not be used for the operation, construction or expansion of a casino,a sport facility that that has a professional sports team as a principal tenant or any firm engaged in retailing merchandise.All assistance should follow the approved RLF guidelines. Please call the Economic Development Director to discuss any prospective financing. WAGE GOALS Businesses receiving RLF-State MIF assistance must pay each employee total compensation,including benefits not mandated by law, shall be the greater of$15.00 per hour or 150%of state or federal minimum wage, whichever is greater, exclusive of benefits required by law. OTHER ELIGIBLE USES OF THE FUNDS Minn. Stat. 116J.8731 allows local governments to loan or grant RLF funds to a regional development commission,other regional entities, or a certain statewide community capital funds to provide the local match required for capitalization of a regional or statewide RLF. Unlike federal MIF funds, state MIF funds held by local governments never lose their state identify and must follow all applicable laws and regulations. CONFLICT OF INTEREST Minn. Stat. 471.87 and 471.88 provide guidance on conflict of interest in a MIF transaction. An actual conflict of interest shall be deemed to exist when a decision on a MIF transaction would compromise a duty to another party or if special advantage is deemed to occur. Potential conflict of interests should also be considered. BUSINESS SUBSIDY LAW As mentioned on page 1,Minn. Stat. 116J.993 and 116J.994 must be followed in the administration of RLF- State MIF.These sections pertain to the definition of a business subsidy,public purpose of the subsidy,criteria., subsidy agreements,wage and job goals,timing of the project,public notice and hearing requirements,failure to meet goals,and reporting of information regarding the outcomes of the subsidy.