3.9.A. SR 05-15-2006 - Laserfiche WebLink

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Item Description Consider Adoption of Amended City Business Subsidy Policy Item Number 3.9.A. Prepared by Catherine Mehelich, Director of Economic Develo ment Reviewed by Scott Clark, Community Development Director City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Consent May 15,2006 Introduction The 2000 MN Business Subsidy Law requires grantors to establish "business subsidy criteria" by May 2003 and prior to granting business subsidies. In accordance with the law the City, EDA and HRA adopted business subsidies criteria within its Tax Increment Financing, Tax Rebate Financing and Micro Loan policies in 2000. The City of Elk River Business Subsidies Policy was drafted and adopted as a separate document from the specific types of subsidies in 2002. Besides meeting the statutory requirements, the purpose of the policy is to establish a minimum wage floor for all types of business subsidies that may be provided by the City, EDA and HRA. Discussion The City's Business Subsidies Policy includes provisions required by the MN Business Subsidy Law, including: . Specific wage floor for the wages to be paid for the jobs created or retained. 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. In 2002 the City established a wage floor of $15.00 per hour exclusive of benefits required by law, for new or retained jobs. . The recipient agrees to maintain and operate its facility at the site where the subsidy is used for a period of 5-years after the date the subsidy is provided. Financial Impact None Attachments . City of Elk River Business Subsidy Policy, Amended May 2006 Action Requested The EDA recently reviewed and adopted the attached amended City Business Subsidy Policy. Staff requests the City Council consider adoption of the amended Business Subsidy Policy. S: \EDA \BUSINESS SUBSIDY\2006 Policy Revisions\5.15.06 Council. Business Subsidy.doc