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T. "Tax Abatement" means reimbursement of certain development costs incurred <br />pursuant to a Development Agreement, as permitted by Minnesota Statutes, <br />Sections 469.1812 to 469.1815. <br />U. "Tax Increment Act" means Minnesota Statutes, Section 469.174 to 469.178. <br />V. "Tax Increment District" means a district established pursuant to the Tax <br />Increment Act or any predecessor statute. <br />W. "Tax Increment Subsidy" means any Subsidy provided in accordance with the <br />provisions of the Tax Increment Act. <br />2. General Requirements. The following requirements shall apply: <br />a. Any Recipient must be located in or moving into the City. <br />b. Each Recipient other than a Recipient of a Special Category Subsidy shall enter <br />into a Subsidy Agreement with the City that, at a minimum, contains the Job and <br />Wage Requirements and complies with the provisions of Section 116J.994, <br />Subdivision 3 of the Act. <br />c. A public hearing shall be required before the City Council before granting a <br />Subsidy that exceeds $150,000. <br />d. The public notice of any public meeting about a Subsidy, including those required <br />by Section 116J.994, Subdivisions 4 and 5 of the Act, must include notice that a <br />person with residence in or the owner of taxable property within the City may file <br />a written complaint with the City if the grantor fails to comply with the Act, and <br />that no action may be filed against the City for the failure to comply unless a <br />written complaint is filed. <br />e. In the case of a Tax Increment or Tax Abatement Subsidy that is not a Special <br />Category Subsidy, the Development Agreement shall require that, following the <br />Achievement Date, the Recipient provide evidence of meeting the Job and Wage <br />Requirements as a condition precedent to disbursement of the Tax Increment <br />Subsidy or Tax Abatement. In all cases, if the Recipient fails to meet such <br />requirements, the Recipient shall repay all. Subsidy received, or a pro rata portion <br />based upon the number of Qualified jobs created, all in accordance with the terms <br />of Section 116J.994, Subdivision 6 of the Act. <br />f. Each Recipient other than the Recipient of a Special Category Subsidy must <br />provide a binding legal obligation to continue operations within the City for at <br />least 5 years from and after the Benefit Date. <br />g. The purpose of a Subsidy may be increased City property tax base, creation of <br />additional employment or the retention of existing employment; provided: <br />i. Increased tax base shall not be a singular purpose unless the City Council <br />specifically finds, after the public hearing with respect to a Subsidy, that <br />the Job and Wage Requirements do not apply and are, therefore, zero; and <br />ii. Job retention shall be a purpose only in cases where the Recipient has <br />certified to the satisfaction of the City Council that job loss is imminent <br />and demonstrable. <br />h. A Recipient other than the Recipient of a Special Category Subsidy shall provide <br />to the City such reports concerning the Subsidy as are required by Section <br />116J.994, Subdivision 7 of the Act. A Recipient of a Special Category Subsidy <br />shall be required to provide the City with information necessary to complete the <br />reports required by Section 116J.994, Subdivision 8(b) of the Act. <br />4 - Business Subsidy Policy ver 2013 -01 -04 (2).docx <br />