12.02 Business Development Public Infrastructure (BDPI) Resolution

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AUTHORIZING LEGISLATION Minnesota Statute 116J.436 BACKGROUND/PURPOSE The Minnesota Department of Employment and Economic Development (DEED) has the authority to make grants to counties or cities to provide up to 50 percent of the capital costs of public infrastructure necessary for an eligible economic development project.The purpose of the grants is to keep or enhance jobs in the area, increase tax base,or to expand or create new economic development. ELIGIBLE APPLICANTS Eligible applicants are statutory or home rule cities or counties located outside the metropolitan area,as defined in section 473.121,subdivision 2. ELIGIBLE PROJECTS An eligible project is expected to result in or will attract substantial public and private capital investment and provide substantial economic benefit to the county or city in which the project would be located.The project is expected or will create or retain full-time jobs. An economic development project for which a county or city may be eligible to receive a grant includes: 1. Manufacturing , 2. Technology ' 3. Warehousing and distribution I 4. Research and development � 5. Agricultural processing, defined as transforming, packaging, sorting, or grading livestock or livestock products into goods that are used for intermediate or final consumption, including goods for nonfood use 6. Industrial park development that would be used by any other business listed as an eligible business even if no business has committed to locate in the industrial park at the time the grant application was made INELIGIBLE PROJECTS Ineligible projects include: 1. Retail 2. Office space development,except as incidental to an eligible purpose Projects cannot be relocating substantially the same operation from another location in the state, unless the DEED determines the project cannot be reasonably accommodated within the county or city in which the business is currently located,or the business would otherwise relocate to another state. PUBUC INFRASTRUCTURE Public infrastructure is defined as publicly owned physical infrastructure necessary to support economic development projects, including, but not limited to, sewers, water supply systems, utility extensions, streets, wastewater treatment systems, storm water management systems, and facilities for , pretreatment of wastewater to remove phosphorus. ' A limited amount of funding is also available for site preparation of property owned and to be used by private entities. ' MAXIMUM GRANT AMOUNT A county or city may receive no more than $2,000,000 in two years for one or more projects. APPLICATION REQUIREMENTS/TIMETABLE 2