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Attachment K- 1 <br />CHAPTER 15 <br />'%wohapter 15 <br />Co �un�ity develop �en�t an�,,j! <br />redevelop ent <br />This chapter describes the requirements for a city to establish criteria for <br />award.ing business subsidies, addresses the various development agencies <br />cities may create, and. provides a brief overview of state and. federally <br />sponsored. programs for encouraging development and. redevelopment. Most <br />economic development tools can be applied. to any size city. These hese tools are <br />interrelated., and. a city may u.se several for one prQject. <br />I. Business subsidies or financial <br />1 <br />assistance <br />A. Business subsidies <br />Minn. Stat. §§ 1161993 to State law defines "bu.siness subsidy" or "subsidy" as a state or local <br />116x.995 agency grant, contribution of personal property, real property, <br />Minn. Stat. § 1161993, subd. 3. infrastructure, the principal amount of a loan at rates below those <br />commercially available to the recipient, any reduction or deferral of any tax <br />or any fee, any guarantee of any payment under any loan, lease, or other <br />obligation, or any preferential u.se of government facilities given to a <br />business in an amount greater than $150,000. <br />Minn. Stat. § 1161994, subds. 5, Prior to awarding a bu.siness subsidy of more than $150,000 (and. as definei <br />11. <br />by law) to any business, a city and. any Hou.sing and. Redevelopment <br />Minnesota Department of <br />Authority (LIRA), Economic Development Authority (ED, A), port authority, <br />loynie t nd Economic <br />Devt EED). <br />a nonprofit created. by a local government must hold. a public hearing and. <br />adopt criteria for award.ing business subsidies. The public hearing notice <br />must include a statement that either a resident or a city property owner may <br />file a written complaint with the city if the city does not follow the business <br />subsidy law. Written complaints must be filed. within specified. timelines. <br />The criteria must inclu.de a policy regarding the wages to be paid. for any <br />jobs created.. Copies of the criteria adopted. by cities are found. on the <br />Minnesota Department of Employment and. Economic Development <br />(DEED,) web site <br />Minn. Stat. § 1161994, ubd. 3. <br />Once the criteria are established., the grantor and. the recipient must enter <br />into subsidy agreements that meet the statutory require ments. The agreement <br />must include an obligation to repay part or the entire subsidy if the recipient <br />does not meet its obligations. <br />HANDBOOK FOR MINNESOTA CITIES <br />15:3 <br />This chapter last revised 12/2010 <br />