Meeting #1 SR 02-05-2001 - Laserfiche WebLink

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(m) indirect benefits derived from assistance to educational institutions; (n) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (o) assistance for a collaboration between a Minnesota higher education institution and a business; (p) assistance for a tax increment financing soils condition district as defined under section 469.174, subdivision 19; (q) redevelopment when the recipient' s investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (r) general changes in tax increment financing law and other general tax law changes of a principally technical nature; (s) federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (t) funds from dock and wharf bonds issued by a seaway port authority; (u) business loans and loan guarantees of $75,000 or less; and (v) federal loan funds provided through the United States Department of Commerce, Economic Development Administration. What are business subsidy criteria? Each Grantor must adopt criteria before granting a business subsidy. The statutory requirements for business subsidy criteria include: [] The criteria must be adopted following a public hearing. [] The criteria may not be adopted on a case by case basis. [] The criteria must set specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies. [] The criteria must include a policy regarding specific wage floor for the wages to be paid for the jobs created. The wage floor may be stated as a specific dollar amount or may be stated as a formula that will generate a specific dollar amount. ~ A grantor may deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the Department of Trade and Economic Development. [] A copy of the criteria must be submitted to the Department of Trade and Economic Development. The minimum requirements and wage floor provisions were added in 2000. Grantors that adopted criteria before May 1, 2000 have until May 1, 2003 to bring their criteria into compliance with the Statutes. What are the steps for approving a business subsidy? [] Determine that the proposed assistance is a business subsidy. A careful analysis of the assistance may find that all or part of the assistance qualifies under the specific exclusions. [] [] Comply with the criteria. Each proposed subsidy should be connected back to the adopted business subsidy criteria. Enter into a subsidy agreement. The Statutes require an agreement for every business subsidy. The subsidy agreement may be a stand alone document or made part of a overall development agreement for a project. The subsidy agreement must address: · a description of thc subsidy, including thc amount and type of subsidy, and type of district if the subsidy is tax increment financing; · a statement of the public purposes for thc subsidy; · measurable, specific and tangible goals for the subsidy; · a description of the financial obligation of the recipient if thc goals arc not met; · a statement of why the subsidy is needed; · a commitment to continue operations at thc site in the jurisdiction where the subsidy is used for at least five years after thc benefit date; · thc name and address of the parent corporation of thc recipient, if any; and · a list of all financial assistance by all grantors for the project. Thc Statutes set forth specific requirements for the failure to meet the goals set forth in thc subsidy agreement.