Date: March 30, 2017
To: Members of the Economic Development Authority
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Planning & Development Director
Title
Northfield Business Subsidy Policy Review Update
Body
Summary and Action Requested:
Executive Committee update on recommended changes to the Northfield Business Subsidy Policy.
Background:
As of the February EDA meeting, the EDA Board took action to review and recommend changes to the Northfield Business Subsidy Policy. The EDA Executive Committee met on March 10th to review the Business Subsidy Policy and made several recommended changes. The following is a brief outline of the recommended changes:
* Removal of all JOBZ related information
o JOBZ was a State business incentive program for greater Minnesota
o The JOBZ program ended December 31, 2015.
* Addition of "Local Government Agency" definition
o "Local Government Agency" is a statutory or home rule charter city, housing and redevelopment authority, town, county, port authority, economic development authority, community development agency, nonprofit entity created by a local government agency, or any other entity created by or authorized by a local government with authority to provide business subsidies.
* Addition of EDA President to execute Business Subsidy Agreements
* Redefining the thresholds of business subsidy amounts per state statute
o Loan or grant greater than $150,000
* Addition of "Financial Assistance" definition
o Financial Assistance means state or local government agency monetary assistance in the forms of:
* Loans of $75,000 to $150,000
* Grants of $25,000 to $150,000
* Addition of "Financial Assistance Report" definition
o "Financial Assistance Report" means the annual reports submitted each year for each business receiving a business financial assistance in the community. The report is submitted by the City in order to comply with M.S. ? 116J.994 Subd. 7(b).
* Addition of "Business Sub...
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