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CITY OF CENTERVILLE BUSINESS SUBSIDY POLICY The Centerville City Council hereby adopts the following business subsidies policy pursuant to the Act: Terms used herein are intended to have the same meanings as prescribed in the Act and this Policy shall apply only with respect to subsidies granted under the Act, if and to the extent required thereby. 1. Definitions. The following definitions shall apply to this Policy: A. "Achievement Date" means a date that is two (2) years following the Benefit Date and is the date by which a Recipient must meet its Job and Wage Requirements. B. "Act" means Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. C. `Benefit Date" means the date that the Recipient receives a Subsidy. If the Subsidy involves the purchase, lease, or donation of physical equipment, the Benefit Date begins when the Recipient puts the equipment into service. If the Subsidy is for improvements to property, the Benefit Date refers to the earliest date of either: (1) When the improvements are finished for the entire project; or (2) When a Recipient, its tenants or subtenants, first occupies the property. If the Recipient, its tenants or subtenants occupies the property and the City expects that other businesses will also occupy the same property, the City may assign a separate Benefit Date for each business, being when each first occupies the property. D. "City" means the City of Centerville, which is the "grantor" of a Subsidy under the Act. E. "Development Agreement" means an agreement entered into between the City and a Recipient that contains the general conditions of the Subsidy and the obligations of the Recipient in consideration of that Subsidy. F. "Economic Development District" means a tax increment district described in Minnesota Statutes, Section 469.174, subdivision 12. G. "Full -Time Equivalent Employee" (FTE) means persons, on a part time basis, whose cumulative, annual hours worked is equal to approximately 2000 hours per year; provided, however, that (a) no more than 3 part time employees may be aggregated to constitute 1 Full -Time Equivalent Employee and (b) no more than 50 percent of a Job and Wage Requirement may be fulfilled by Full -Time Equivalent Employees. In order to count an FTE as a substitute for Permanent Full -Time Employee, the rate of pay shall be not less than 200 percent of the Federal Minimum Wage. H. "Job and Wage Requirements" means the requirements described in Section 3 hereof. I. "Permanent Full -Time Employees" means persons who are eligible to receive health, pension and other benefits provided according to the personnel or employment policies of a Recipient, its tenants or subtenants, or through a collective bargaining agreement, or due to State statutes, and whose wages, as that term is defined at 26 U.S.C. § 3401, shall not be less than 180 percent of the Federal Minimum Wage. 2 - Business Subsidy Policy ver 2013- 01- 04.docx 16