Res 02-13HMOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 02-13H
RESOLUTION ADOPTING AMENDED BUSINESS
SUBSIDY CRITERIA
WHEREAS, pursuant to notice as is required by Minnesota Statutes Sections 116J.993
through 116J.994, the Housing and Redevelopment Authority in and for the City of Mound
has held its hearing on the adoption of an amendment to such criteria which are attached
hereto as Exhibit A.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound that the amended business subsidy criteria contained in the
attached Exhibit A are hereby adopted.
Adopted this 12th day of November, 2002.
Attest:
Kandis M. Hanson, Executive Director
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EXHIBIT A
(Resolution No. 02-13H)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND
BUSINESS SUBSIDY CRITERIA
Purpose
1.01 This document includes the criteria to be considered by the Housing and
Redevelopment Authority in and for the City of Mound, Minnesota ("HRA") to
evaluate requests for business subsidies. It is the intent of the HRA in adopting
these criteria is to comply with Minnesota Statutes, Sections 116J.993-116J.995
(the "Act"). The HRA hereby adopts the definitions contained in the Act for
application in the criteria.
1.02 The HRA shall have the option to amend or waive sections of these
criteria when doing so is determined necessary or appropriate. Amendments to
these criteria are subject to public hearing requirements of the Act.
1.03 These criteria are intended to set specific minimum requirements which
grantees must meet to be eligible to receive business subsidies. The HRA will
not adopt business subsidy criteria on a case-by-case basis.
II.
Statutory Limitations.
2.01 In accordance with the Act, all business subsidy requests must comply
with the Act and other applicable Minnesota statutes. The HRA's ability to grant
business subsidies is governed by the limitations established in the Act.
III.
Goals and Objectives
3.01 It is the HRA's intent to advance the following goals and objectives in
granting business subsidies:
a)
b)
All projects, by not later than the benefit date, must be consistent with
Mound's comprehensive plan and any other plan or guide for development
of the community or a sub-area of the community..
Business subsidies must be justified by evidence that the project cannot
proceed without the benefit of the subsidy. Potential grantees shall be
required to provide such studies, reports, appraisals, information or other
data as may be requested by the HRA prior to consideration of a request
for business subsidy. If tax increment financing is used to grant a subsidy,
the grantee must demonstrate compliance with all statutory requirements
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c)
of the TIF Act, including the "but for" test. The potential grantee will be
required to provide all documentation necessary to make the requisite
findings under the TIF Act and the Act.
Grantees will be required to enter into an agreement with the HRA that is
consistent with statutory requirements, and which contains measurable,
specific and tangible goals. The Agreement shall include a commitment to
continue in operations within the HRA for a minimum of five years after the
benefit date, unless waived by the HRA, and shall comply with the specific
job and wage goals established for the project, if any.
IV. Business Subsidy Criteria
4.01 The HRA recognizes that every proposal is unique. Nothing in these
criteria shall be deemed to be an entitlement or shall these criteria establish a
contractual right to a subsidy. The HRA reserves the right to modify these
criteria from time to time and to evaluate each project as a whole.
4.02 A business subsidy must meet a public purpose. The following criteria
shall be utilized in evaluating a request for a business subsidy:
bo
Increase in tax base. While an increase in the tax base cannot be the sole
grounds for granting a subsidy, the HRA believes it is a preferred condition
for any subsidy.
Jobs. It is HRA's intent that the grantee maximize the number of jobs at
the site. This may include jobs to be retained but only if job loss is specific
and demonstrable.
Wage Floor. The jobs created as a result of any business subsidy
approved by the HRA shall pay wages at an hourly rate not lower that 110
percent of the Federal minimum wage for full-time and part-time
employees. Any deviation from the established wage floor must be
documented in conformity with the requirements set forth in the Act. The
provisions regarding wage floor do not apply in an instance in which the
HRA, following a hearing, determines that job creation or retention is not
part of the public purpose of the subsidy.
4.03 Economic Development. In addition to the criteria in Section 4.02,
projects should promote one or more of the following:
a. Encourage economic and commercial diversity within the community;
b. Contribute to the establishment of a critical mass of commercial
development within an area;
c. Provide basic goods and services, increase the range of goods and
services available or encourage fast-growing or high technology business
location or expansion;
d. Promote redevelopment objectives and removal of blight, including
pollution cleanup;
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Promote the retention or adaptive reuse of buildings of historical or
architectural significance;
Promote additional or spin-off development within the community; or
Encourage full utilization of existing or planned infrastructure
improvements.
Compliance and Reportin.q Requirements.
5.01 Any subsidy granted by the HRA will be subject to the requirement of a
public hearing, if necessary, and must be approved by the Mound city council.
5.02 It will be necessary for both the grantee and the HRA to comply with the
reporting and monitoring requirements of the Act.
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