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JUN. 6. 2001 3' :42 PM EHLERS & ASSOCIATES NO- 4497-P- 6 CITY OF Business Subsidy Criteria 1. PURPOSE 1.01 The purpose of this criteria is to establish the City's position as relates to the use of business subsidies,as defined in Minnesota Statutes 1161.993,Subdivision 3,for private development.This criteria shall be used as a guide in processing and reviewing applications requesting business subsidies. 1.02 The City shall have the option of amending or waiving sections of this criteria when determined necessary or appropriate. Amendments to these 6iteria are subject to public hearing requirements pursuant to Minnesota Statutes, Sections 116J,993 through, l I6I.995. 2. STATUTORY LIMITATIONS 2.01 In accordance with the Business Subsidy Criteria, Business Subsidy requests must comply with applicable State Statutes.The City's ability to grant business subsidies is governed by the limitations established in Minnesota Statutes 116J.993 through 1161.995. 3. PUBLIC POLICY REQUIREMENT 3.01 All business subsidies must meet a public purpose other than increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is imminent and demonstrable 4. BUSINESS SUBSIDY APPROVAL CRITERIA 4 .01 All new projects approved by the City should meet the following mandatory minimum approval criteria. However,it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual rights on the part of any potential developer. 4.02 The business subsidy shall be provided within applicable state legislative restrictions, debt limit guidelines,and other appropriate financial requirements and policies. 4.03 The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to the plan and Ordinances must be under active consideration by the City at;the time of approval. 4.04 Business subsidies will not be provided to projects that have the financial feasibility to proceed without the benefit of the subsidy. In effect, business subsidies will not be provided solely to broaden a developer's profit margins on a project. Prior to consideration of a business subsidy request,the City may undertake an independent underwriting of the project to help ensure that the request for assistance is valid. 4.05 Prior to approval of a business subsidies financing plan,the developer shall provide any required market and financial feasibility studies, appraisals, soil boring, information provided to private lenders for the project, and other information or data that the City or its financial consultants may require in order to proceed with an independent underwriting.