CR 2003-070 Revise Business Subsidy Criteria Policy
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CITY Or:
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April 21, 2003
HOPKINS'
Council Report 2003-070
REVISED BUSINESS SUBSIDY CRITERIA POLICY
Proposed Action
Staff recommends approval of the following motion: approve amended Business Subsidy
Criteria Policy. This item was also considered by the HRA at a public hearing.
Overview
In 1999, pursuant to Minnesota statutory requirements, the City adopted a policy detailing
business subsidy criteria. This policy identifies requirements that need to be met by businesses
receiving public financial subsidies from the City. State statute identifies a subsidy as any grant,
loan, contribution of property, etc., excluding the following:
. Subsidies of less than $25,000
. Assistance for housing or pollution control
. Assistance for the sole purpose of renovating older, decaying building stock
The amended policy proposed for consideration addresses the following:
. Language updating to better reflect present standards for these types of policies.
. Identifies the types of "public purpose projects" eligible for possible business subsidy
assistance.
. Details a "specific wage floor" for wages to be paid for jobs created. This is a new
statutory requirement. The policy as proposed identifies the wage floor for jobs created
as 120 percent of federal minimum wage.
The amended Business Subsidy Criteria Policy has been reviewed by Bob Deike of Bradley &
Deike.
Supporting: Documents
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ic Development Director
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Financial Impact: $ 0 N/ A _ Budgeted: Y IN _ Source:
Related Documents (CIP, ERP, etc.):
Notes: