City Council Meeting Date: December 5, 2017
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Development Director
Title
Consider Approval of Amended Northfield Business Subsidy Policy
Body
Action Requested:
Staff recommends approval of a Resolution approving the updated Business Subsidy Policy.
Summary Report:
The City of Northfield initially adopted a Business Subsidy Policy in 1999 in conformance with the Business Subsidies Act found in Sections 116J.993 through 116J995 of Minnesota Statutes. The purpose of the Business Subsidy Policy is to establish guidelines and criteria regarding the use of business subsidies that encourage desirable private development or redevelopment projects within the City of Northfield.
A business subsidy is defined as a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease or other obligation, or any preferential use of government facilities given to a business (MN Statute 116J.993 Subd. 3).
In accordance with State Statute, local governments shall establish a business subsidy policy that meets the state requirements. (MN Statute 116J.994 Subd. 2) Local units of government may include additional requirements specific to each community. The current Business Subsidy Policy was last amended on April 21, 2003. The policy states eligible and ineligible uses for business subsidies awarded by the City of Northfield. The City of Northfield must report on an annual basis to the MN Department of Employment and Economic Development (DEED) regarding the subsidies delivered in the calendar year.
The current Northfield Business Subsidy Policy includes sections that are outdated and no longer applicable. For ex...
Click here for full text