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HomeMy WebLinkAbout00-02HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF LAKEVILLE, DAKOTA COUNTY, STATE OF MINNESOTA Date February 22, 2000 Resolution No. 2000-2 Motion By Seconded By RESOLUTION ADOPTING BUSINESS SUBSIDY POLICY WHEREAS, Minn. Stat. 116J.994 requires the Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota to adopt a Business Subsidy Policy prior to the granting any "Business Subsidy"; and WHEREAS, a public hearing was held before the Economic Development Commission on January 25, 2000 to consider adoption of the policy. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota as follows: 1. The Business Subsidy Policy attached hereto is adopted. ADOPTED this 22nd day of February , 2000, by the Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF LAKEVILLE, MINNESOTA BY: Gu-�—►�� Du ne Zaun, GUr Rert A. Erickson, Executive Director 84540.02 RNKA2/14/00 CITY OF LAKEVILLE BUSINESS SUBSIDY POLICY This Policy is adopted for purposes of the Business Subsidies Act (the "Act"), Minnesota Statutes, Sections 116J.993 through 116J.995. Terms used in this Policy are intended to have the same meanings as if used in the Act, and this Policy shall apply only with respect to "subsidies" as defined by the Act if and to the extent required thereby. The City of Lakeville and the Lakeville Economic Development Commission maintain several policy documents which speak to the general goals and objectives for the provision of public assistance for private development or redevelopment activities. These documents include, but are not limited to the current Strategic Plan for Economic Development and the Tax Increment Financing Policy. While it is recognized that the creation of good paying jobs is a desirable goal which benefits the community, it must also be recognized that not all projects assisted with subsidies derive their public purposes and importance solely by virtue of job creation. Worthwhile projects may provide value to the community in the forms of infrastructure improvements, stabilization of business districts or neighborhoods, or enhancement of economic diversity. In addition, the imposition of high job creation requirements and high wage levels may be unrealistic and counter-productive in the face of larger economic forces and the financial and competitive circumstances of an individual business. With respect to subsidies, the determination of the number of jobs to be created and the wage levels thereof shall be guided by the following principles and criteria: ■ Each project shall be evaluated on a case-by-case basis, recognizing its importance and benefit to the community from all perspectives, including created or retained employment positions and other policy objectives of the City of Lakeville. ■ In cases where the objective is the retention of existing jobs, the recipient of the subsidy shall be required to provide reasonably demonstrable evidence that the loss of those jobs is imminent. ■ The setting of wage and job goals must be sensitive to prevailing wage rates, local economic conditions and/or external economic forces over which neither the grantor nor the recipient of the subsidy has control, the individual financial resources of the recipient and the competitive environment in which the recipient's business exists. ■ If a particular project does not involve the creation of jobs, but is nonetheless found to be worthy of support and subsidy, it may be approved without any specific job wage goals, as may be permitted by applicable law. Each project shall not only be evaluated against the Business Subsidy Policy but also against other applicable City or Economic Development Commission policies, including the Comprehensive Guide Plan, current Strategic Plan for Economic Development and the Tax Increment Financing Policy. ■ Because it is not possible to anticipate every type of project which may in its context and time present desirable community building or preservation goals and objectives, the governing body must retain the right in its discretion to approve projects and subsidies which may vary from the principles and criteria of this Policy.