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ELIGIBLE ACTIVITIES <br /> RLF's may be used to fund a variety of business activities including: <br /> 1. Acquisition of land <br /> 2. Construction or rehabilitation of facilities <br /> 3. Site improvements <br /> 4. Utilities or infrastructure <br /> 5. Machinery and Equipment <br /> 6. Training <br /> 6-.7.Working Capital <br /> Advance approval from DEED is necessary if the local government would like to provide financing for <br /> activities not listed above.Approval is more likely to occur in projects that relate to business development <br /> and involve other local government funds. <br /> INELIGIBLE ACTIVITIES <br /> In contrast to federal MIF funds,there are industry limitations on how state MIF RLFs may be used. State <br /> MIF RLFs may not be used for the operation,construction or expansion of a casino,a sport facility that <br /> that has a professional sports team as a principal tenant or any firm engaged in retailing merchandise.All <br /> assistance should follow the approved RLF guidelines. Please call the Economic Development Director to <br /> discuss any prospective financing. <br /> WAGE GOALS <br /> Businesses receiving RLF-State MIF assistance must pay each employee total compensation,including <br /> benefits not mandated by law,shall be the greater of$15.00 per hour or 150%of state or federal minimum <br /> wage,whichever is greater,exclusive of benefits required by law. <br /> OTHER ELIGIBLE USES OF THE FUNDS <br /> Minn. Stat. 116J.8731 allows local governments to loan or grant RLF funds to a regional development <br /> commission,other regional entities,or a certain statewide community capital funds to provide the local <br /> match required for capitalization of a regional or statewide RLF. <br /> CONFLICT OF INTEREST <br /> Minn. Stat. 471.87 and 471.88 provide guidance on conflict of interest in a MIF transaction.An actual <br /> conflict of interest shall be deemed to exist when a decision on a MIF transaction would compromise a <br /> duty to another party or if special advantage is deemed to occur. Potential conflict of interests should also <br /> be considered. <br /> BUSINESS SUBSIDY LAW <br /> As mentioned on page 1,Minn. Stat. 116J.993 and 116J.994 must be followed in the administration of RLF- <br /> State MIF.These sections pertain to the definition of a business subsidy,public purpose of the subsidy, <br /> criteria, subsidy agreements,wage and job goals,timing of the project,public notice and hearing <br /> requirements,failure to meet goals,and reporting of information regarding the outcomes of the subsidy. <br /> JOB LISTING REQUIREMENTS <br /> Per Minn. Stat. 116L.66,a business that receives grants or loans in an amount greater than $200,000 must <br /> agree to list any vacant or new positions related to the financial assistance on the MinnesotaWorks.net job <br /> bankwebsite. <br /> 3 EDA&City Council Approved April 17,2017 <br />