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City of , Minnesota E. SUBSIDY AGREEMENT&REPORTING REQUIRMENTS All developers/businesses receiving tax abatement assistance from the City of shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. All developers/businesses receiving tax abatement assistance shall enter into a subsidy agreement with the City of that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116J.993. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and performance agreement have been meet, whichever is later. Underperforming projects shall result in reduced assistance on a pro rata basis. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City of no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where tax abatement assistance is used for a period of five years after the benefit is received. In addition to attaining or exceeding the jobs and wages goals set forth in the Subsidy Agreement, the applicant shall meet the qualifications set forth in Section IV of this -� document. Developers/Businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State of Minnesota to receive any loans or grants from public entities for a period of five years. F. APPLICATION PROCESS 1. Applicant submits the completed application along with a nonrefundable initial application fee of$500. a. City staff reviews the application and completes the Application Review Worksheet. b. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 2. If preliminary approval is granted, the applicant submits the final application fee of $3,000. The process for creating a Tax Abatement project area, including all necessary notices, resolutions and certificates prepared by City staff and/or consultants is begun. a. Public hearing notices are published. b. Public hearing(s) on the proposed project are held. c. The City Council grants final approval or denial of the proposal. Page 6