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.