5.1 Public Hearing TIF Plan 2-2 - Laserfiche WebLink

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CITY OF PEQUOT LAKES —TIF DISTRICT NO. 2 -2 Section 24 Prior Planned Improvements The City shall accompany its request for certification to the County Auditor with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the Original Net Tax Capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. The City has issued no building permits within the last 18 months for properties within the TIF District. Section 25 Development Agreements If more than 10% of the acreage of a project (which contains an economic development district) is to be acquired by the Authority with proceeds from tax increment bonds then, prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. Section 26 Business Subsidy Laws Minnesota Statutes 116J.994 requires a City or Authority providing financial assistance of between $25,000- 150,000 or a business subsidy worth $150,000 or more to complete an approval process as described below. Housing projects and many redevelopment projects are exempt from the requirements. For financial assistance of $25,000- 149,999: 1. Adopt criteria for awarding business subsidies following a public hearing. 2. Complete the Financial Assistance Report annually for two years For a business subsidy of $150,000 or more, the Authority must complete the following: 1. Adopt criteria for awarding business subsidies following a public hearing. 2. Conduct a public hearing on the subsidy, after providing at least 10 days published notice in the local newspaper. 3. Enter into a subsidy agreement which must include the following information and requirements: a. A description of the subsidy. b. A statement of the public purpose and goals of the subsidy. c. Wage and job creation goals (or job retention goals, if job loss is imminent and demonstrable) to be achieved within 2 years of receiving the subsidy; d. A description of the recipient's financial obligation if the goals are not met. The recipient must pay back the assistance with interest if goals are not met, although pro- ration to reflect partial fulfillment of goals is permitted. e. A statement of why the subsidy is needed. f. A commitment from the recipient to continue operations at the site for at least 5 years; g. The name and address of the parent company of the recipient; h. A list of all other financial assistance to the project; and i. A requirement for the recipient to provide the Authority and the Department of Employment and Economic Development with annual information regarding goals for two years after receiving the subsidy or until the goals are achieved. The reports must be filed by March 1 for the prior year. Section 27 Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be a reasonable 10