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ITEM # 6. <br />ver <br />MEMORANDUM <br />TO: Economic Development Authority <br />FROM: Catherine Mehelich, Director of Economic <br />DATE: April 10, 2006 <br />Development~~ <br />SUBJECT: Consider Draft Amendments to City's Business Subsidies Policy <br />Attachments <br />• City of Elk River Business Subsidies Policy, 1" Draft Amended April 2006 <br />• Business Subsidy Fact Sheet, MN Dept Employment & Economic Development <br />• Frequently Asked Questions, MN Dept Employment & Economic Development <br />Background <br />The 2000 MN Business Subsidy Law requires subsidy grantors to establish "Business Subsidy" <br />Criteria by May 2003 and prior to granting business subsidies. In accordance with the law the <br />City adopted business subsidies criteria within its Tax Increment Financing, Tax Rebate <br />Financing and Micro Loan policies in 2000. <br />The City of Elk River Business Subsidies Policy was drafted and adopted as a separate document <br />from the specific types of subsidies in 2002. Besides meeting the statutory requirements, the <br />purpose of the policy is to establish a minimum wage floor fox all types of business subsidies that <br />may be provided by the City of Elk River, in addition to the project meeting the city's specific <br />guidelines fox each particular form of subsidy, i.e. Tax Increment Finance, Tax Abatement and <br />Economic Development Micro-Loans. <br />It is appropriate fox the City to review and consider amendments to the City's Business Subsidies <br />Policy at this time. <br />Summary <br />The attached Business Subsidy information provided by the MN Dept of Employment & <br />Economic Development outlines the types of business subsidies and requirements under the MN <br />Business Subsidy Law. <br />The City's Business Subsidies Policy includes provisions required by the MN Business Subsidy <br />Law, including: <br />