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99-8804r 61 RESOLUTION NO. 8804 RESOLUTION AUTHORIZING THE ADOPTION OF CRITERIA FOR PROVIDING BUSINESS SUBSIDIES WHEREAS, the City of Richfield, Minnesota, (the "City"), as part of its operations, may provide economic assistance to individuals who are engaged in the development and redevelopment of land within the City; and WHEREAS, pursuant to legislation enacted this year by the State of Minnesota, ("Business Subsidy Act") , the City Council is required to adopt criteria for awarding business subsidies prior to granting such assistance; and WHEREAS, the Business Subsidy Act further provides that the adoption of criteria must be preceded by a public hearing on the matter. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. A public hearing on the adoption of Business Subsidy Criteria has been held before the City Council on November 22, 1999 at 7:00 p.m. in the City Council Chambers at the Richfield City Hall located at 6700 Portland Avenue South, Richfield, Minnesota after proper public notice. 2. The Business Subsidy Criteria are adopted. Adopted by the City Council of the City of Richfield, Minnesota this 22nd day of November, 1999. ;7n ATTEST: f/;. ^ ~ ~I-du, Thomas Ferber, City Clerk '--' Exhibit A CITY OF RICHFIELD BUSINESS SUBSIDY CRITERIA I. Purpose This document includes the criteria to be considered by the City of Richfield ("City") to evaluate requests for business subsidies. It is the intent of the City in adopting these criteria is to comply with Minnesota Statutes, Sections 116J.993- 116J.995 (the "Act"). The City hereby adopts the definitions contained in the Act for application in the criteria. II. Goals and Obiectives It is the City's intent to advance the following goals and objectives in granting business subsidies: a) All projects, by not later than the benefit date, must be consistent with Richfield's comprehensive plan and any other plan or guide for development of the community or a sub-area of the community. b) Business subsidies must be justified by evidence that the project cannot proceed without the benefit of the subsidy. If tax increment financing is used to grant a subsidy, the grantee must demonstrate compliance with all statutory requirements of the TIF Act, including the "but for" test. The grantee will be required to provide all documentation necessary to make the requisite findings under the TIF Act and the Act. c) Grantees will be required to enter into an agreement with the City that is consistent with statutory requirements, including a commitment to continue the business at the site for a minimum of five years after the benefit date and compliance with the specific jobs and wages goals established for the project. III. Business Subsidy Criteria The City recognizes that every proposal is unique. Nothing in these criteria shall be deemed to be an entitlement or shall establish a contractual right to a subsidy. The City reserves the right to modify these criteria from time to time and to evaluate each project as a whole. The following criteria shall be utilized in evaluating a request for a business subsidy: a) Increase in tax base. While an increase in the tax base cannot be the sole grounds for granting a subsidy, the City believes it is a preferred condition for any subsidy. b) Jobs and Wages. It is City's intent that the grantee create livable wage jobs at the site. This may include jobs to be retained but only if job loss is imminent and demonstrable. c) Economic Development. Projects should promote one or more of the following: 1. Encourage economic and commercial diversity within the community; 2. Contribute to the establishment of a critical mass of commercial development within an area; 3. Provide basic goods and services, increase the range of goods and services available or encourage fast-growing businesses; 4. Promote redevelopment objectives and removal of blight, including pollution cleanup; 5. Promote the retention or adaptive reuse of buildings of historical or architectural significance; 6. Promote additional or spin-off development within the community; 7. Encourage full utilization of existing or planned infrastructure improvements. IV. Compliance and Reporting Reauirements. a) Any subsidy granted by the City will be subject to the requirement of a public hearing, if necessary, and must be approved by the Richfield city council. b) It will be necessary for both the grantee and the City to comply with the reporting and monitoring requirements of the Act.