2013-01-23 CC Packet - Laserfiche WebLink

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T. "Tax Abatement" means reimbursement of certain development costs incurred pursuant to a Development Agreement, as permitted by Minnesota Statutes, Sections 469.1812 to 469.1815. U. "Tax Increment Act" means Minnesota Statutes, Section 469.174 to 469.178. V. "Tax Increment District" means a district established pursuant to the Tax Increment Act or any predecessor statute. W. "Tax Increment Subsidy" means any Subsidy provided in accordance with the provisions of the Tax Increment Act. 2. General Requirements. The following requirements shall apply: A. Any Recipient must be located in or moving into the City. B. Each Recipient other than a Recipient of a Special Category Subsidy shall enter into a Subsidy Agreement with the City that, at a minimum, contains the Job and Wage Requirements and complies with the provisions of Section 116J.994, Subdivision 3 of the Act. C. A public hearing shall be required before the City Council before granting a Subsidy that exceeds $150,000. D. The public notice of any public meeting about a Subsidy, including those required by Section 116J.994, Subdivisions 4 and 5 of the Act, must include notice that a person with residence in or the owner of taxable property within the City may file a written complaint with the City if the grantor fails to comply with the Act, and that no action may be filed against the City for the failure to comply unless a written complaint is filed. E. In the case of a Tax Increment or Tax Abatement Subsidy that is not a Special Category Subsidy, the Development Agreement shall require that, following the Achievement Date, the Recipient provide evidence of meeting the Job and Wage Requirements as a condition precedent to disbursement of the Tax Increment Subsidy or Tax Abatement. In all cases, if the Recipient fails to meet such requirements, the Recipient shall repay all Subsidy received, or a pro rata portion based upon the number of Qualified jobs created, all in accordance with the terms of Section 116J.994, Subdivision 6 of the Act. F. Each Recipient other than the Recipient of a Special Category Subsidy must provide a binding legal obligation to continue operations within the City for at least 5 years from and after the Benefit Date. G. The purpose of a Subsidy may be increased City property tax base, creation of additional employment or the retention of existing employment; provided: (1) Increased tax base shall not be a singular purpose unless the City Council specifically finds, after the public hearing with respect to a Subsidy, that the Job and Wage Requirements do not apply and are, therefore, zero; and (2) Job retention shall be a purpose only in cases where the Recipient has certified to the satisfaction of the City Council that job loss is imminent and demonstrable. H. A Recipient other than the Recipient of a Special Category Subsidy shall provide to the City such reports concerning the Subsidy as are required by Section 116J.994, Subdivision 7 of the Act. A Recipient of a Special Category Subsidy 4 - Business Subsidy Policy ver 2013- 01- 04.docx 18