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<br />Request for Action <br /> <br /> <br />To Item Number <br />Housing and Redevelopment Authority 8.5 <br />Agenda Section Meeting Date Prepared by <br />General Business February 4, 2019 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Business Subsidy Agreement Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Review the suggested changes to the city’s Business Subsidy Policy. <br /> <br />Background/Discussion <br />The purpose of the Business Subsidy Policy is to establish guidelines and criteria regarding the use of <br />business subsidies including tax increment financing and tax abatement for private development projects. <br /> <br />This policy outlines criteria for providing subsidies, in addition to the requirements and limitations set <br />forth by provisions of Minnesota Statutes Section 116J.993 to 116J.995 (Minnesota Business Subsidy <br />Law), and the city’s policy and guidelines of the particular form of subsidy. <br /> <br />These guidelines shall be used in processing and reviewing applications for business subsidies. The policy <br />was last amended in April, 2015, and subsequently approved by the City Council. <br /> <br />Staff recommends the following changes to the policy. <br /> The definition of “benefit date” as the Business Subsidy Act, Minnesota Statutes, Sections <br />116J.993 – 116J.995, gives recipients more flexibility as to how to determine the benefit date than <br />is reflected in the current policy. <br /> Cleaning up some other sections to allow for future updates in the Business Subsidy Act. <br /> <br />The act is unclear whether a public hearing on a non-substantive amendment is necessary, but it is <br />recommend the City Council hold a public hearing on any updates to the policy on behalf of the EDA, <br />HRA and the city. Following the public hearing the EDA and the HRA would then adopt resolutions <br />approving the changes at their next meeting. <br /> <br />Any amendments to the policy would also need to be submitted to DEED. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> 2015 Business Subsidy Policy <br /> Attorney Redlined Changes to the Business Subsidy Policy <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />