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ITEM ~ 6_l .. <br />MEMORANDUM <br />TO: Economic Development Authority <br />FROM: Catherine Mehelich, Director of Economic DevelopmentC~ <br />DATE: May 8, 2006 <br />SUBJECT: Consider Adoption of Amended Business Subsidy Policy <br />Attachments <br />• City of Elk River Business Subsidy Policy, Amended May 2006 <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 />Recommendation <br />The attached policy includes the amendments discussed at the April 1Q 2006 EDA meeting. <br />Staff recommends that the EDA consider adoption of the amended Business Subsidy Policy. <br />Following the EDA's adoption, the City Council will be asked to adopt the amended policy. <br />