02-26-08 EDC Meeting Minutes - Unsigned

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EDC Minutes February 26, 2008 Page 6of10 it still behooves the City to have that discussion to decide if it's truly important to provide assistance. Where this document stands right now is that staff is going to be talking to surrounding communities to get a flavor of what they are doing because she knows Councils always request that type of information. She said this group needs to decide where they sit on this and decide if they think the topic of jobs is a huge goal for the City or not. She will then start the guide for indicating how the research will be finished up for the document. Interim City Administrator Willis noted he thinks Ms. Kvilvang is right in that there is not much growth opportunity, except for the TCAAP property potential. He thinks that the City can address it with respect to the TCAAP property. He indicated there has to a report submitted to the Department of Economic Security on this job and wage goals every year so whatever is decided upon needs to be done a structure that can be followed up on. He also indicated when he worked for the City of Inver Grove Heights, a similar policy was adopted and they established 150% of the minimum wage as their goal which he feels should not be terribly difficult for a new business in the community. Jim Paulet asked for clarification on what the 150% of minimum wage meant. Interim City Administrator Willis indicated it is based off the minimum wage of the state at the time the policy is adopted—and then it is 1.5 times that wage. Chair Kunkel asked if that 150% figure is fairly typical. Interim City Administrator Willis . indicated he cannot answer if that is typical,but indicated he would not be surprised if it was. Rob asked if the City is required to establish hourly wage goals. Ms. Kvilvang indicated that is correct. In a policy job creation goals and minimums for the wage goals must be stated. She indicated anyone new coming into the City would have to meet that requirement of the plan unless they are exempt. Nancy asked if the City does not have business subsidy requirements, then are new companies then not required to meet any goals. Ms. Kvilvang indicated that was correct. She indicated the subsidy can be in the form of tax increment, abatement, reduction in fees that are standard such as SAC, WAC,park dedication fees, etc. Ms. Kvilvang indicated if there are goals stated in this policy, then a new business coming into the City has to meet that goal with the newly created jobs and be able to report on meeting that goal. If that requirement is not met, then the assistance would have to be paid back to the City. Nancy asked if that would rule out a company such as Target moving into the City. Ms. Kvilvang indicated that Target does have more high paying jobs that most people realize. Rob noted the one thing they have to keep in mind is that Arden Hills has a unique situation where we have one of the highest daytime employment centers in the area. He thought the thing we don't have are a lot of services to provide for these people, particularly restaurants. What the City will have offer is redevelopment opportunities. Ms. Kvilvang indicated there are exemptions from business subsidy plans through redevelopment, which is all based on formulas to prepare the land for sale for redevelopment. For instance, if the cost to prepare land for redevelopment is less than 70% of the assessor's value, the developer can be exempt. Ms.