HomeMy WebLinkAbout2000.04.19 PACKET Secretary
CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUTHORITY
AGENDA-SPECIAL MEETING
WEDNESDAY APRIL 19 2000
11 :15 A.M.
• 1. Call to Order
2. Roll Call
3. Business Items
A. Hold Public Hearing to provide citizens the opportunity to
comment on the Resolution relating to criteria for awarding
business subsidies. (A copy of the resolution adopted by the City
Council on December 1, 1999 has been enclosed.)
4. Adjourn
•
F:\GROUPS\PER_ECON\Economic Development\EDA Packets\2000\Agendas\April(Special Meeting).doc
• RESOLUTION NO. 99-204.1
RESOLUTION TO ESTABLISH CRITERIA
FOR GRANTING BUSINESS SUBSIDIES
WHEREAS, the City of Cottage Grove is required by Minnesota Statutes,
Sections 116J.993— 116J.995 to adopt criteria for awarding business subsidies; and
WHEREAS, the City Council conducted a public hearing at its meeting of
December 1, 1999 for the establishment of a business subsidy policy required by state
law to continue tax increment activity and other business subsidies offered by the City;
and
WHEREAS, the City of Cottage Grove has an established history of providing
financial assistance and other business subsidies to private enterprises meeting certain
public goals and objectives;
NOW THEREFORE BE IT RESOLVED, that the following Business Subsidy
Policy is hereby established in the City of Cottage Grove:
Section 1. This Policy is adopted for purposes of the business subsidies act (the
"Act"), which is Minnesota Statutes, Sections 116J.993— 116J.995. The terms used in
this Policy are intended to have the same meanings as used in the Act, and this Policy
• shall apply only with respect to subsidies granted under this Act.
Section 2. With respect to granting subsidies, the determination of the number of
jobs to be created and the wage levels thereof shall be guided by the following principles
and criteria:
A. Each project shall be evaluated on a case-by-case basis, recognizing its
importance and benefit to the community from all perspectives, including created
or retained employment positions.
B. If a particular project does not involve the creation of jobs, but is nonetheless
found to be worthy of support and subsidy, it may be approved without any
specific job or wage goals, as may be permitted by state law.
C. In cases where the objective is the retention of existing jobs, the recipient of
the subsidy shall be required to provide reasonably demonstrable evidence that
the loss of those jobs is imminent.
D. The setting of wage and job goals must be sensitive to prevailing wage rates,
local economic conditions, external economic forces over which neither the
grantor nor the recipient of the subsidy has control, the individual financial
resources of the recipient and the competitive environment in which the
recipient's business exists.
• E. While the creation of jobs is a desirable goal, which benefits the community, it
must be recognized that not all projects assisted with subsidies derive their
public purposes and importance solely by virtue of job creation. In addition, the •
imposition of high job creation requirements and high wage levels may be
unrealistic and counterproductive in the face of larger economic forces and the
financial and competitive circumstances of an individual business. In instances
where a worthwhile project does not involve job creation, it may be approved for
a subsidy, as may be permitted by law, with consideration given to the following:
1. Enhancing economic diversity by improving the mix of businesses in
the area, providing essential customer services to the area, or generating
a high level of secondary spin-off economic effects.
2. Stabilizing the community by investing in an area that is economically
depressed, investing in an area with slum and blight conditions, or
stimulating additional capital investment in real property, equipment,
and/or infrastructure in the area.
3. Increasing the tax base by providing a positive impact on the short and
long term tax base, or providing a positive impact on other local business
and individual property tax bills.
4. The projects risk-reward ratio, with special consideration of the type of
assistance requested and the current status of that specific tool or
program.
Section 3. Because it is not possible to anticipate every type of project which •
may in its context and time present desirable community development and/or
preservation goals and objectives, the City must retain the right in its discretion to
approve projects and subsidies which may vary from the principles and criteria of this
Policy.
Passed this 1st day of December 1999.
John D. Denzer, Mayor
Attest:
Caron M. Stransky, City Clerk
•