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HomeMy WebLinkAbout[05b] Minnesota Jobs Bill • CITY OF ST. JOSEPH wvw.cityof stjoseph.com DATE: August 18, 2010 MEMO TO: St. Joseph Economic Development Authority Administrator FROM: Cynthia Smith - Strack, Municipal Development Group Judy Weyrens RE: State Jobs Bill Incentives Mayor Al Rassier Background As discussed at previous EDA meetings, the Minnesota Jobs Bill signed into law by Governor Councilors Pawlenty on April 1, 2010 bill contains a number of provisions relating to economic development Steve Frank tools that are potentially beneficial to cities including: Bob Loso Renee Symanietz a. The establishment of compact development districts which function like redevelopment TIF Dale Wick districts but do not require a finding of `substandard building' to be eligible. EDA b. The creation of economic development districts for use by businesses not included in Carolyn Yaggie— manufacturing, industry, or technology. Heinen Ken Jacobson c. The temporary authority to use excess revenue in existing TIF districts withheld for Al Rassier administration of the district for uses external to the district. Tom Skahen Dale Wick As directed by the EDA Board a press release (copy attached) regarding business owners potentially interested in expanding was drafted and distributed to local media outlets (i.e. St. Cloud Times, The Newsleader, WJON), the St. Joseph Chamber of Commerce, and real estate contacts (i.e. Minnesota Commercial Association of Realtors via the St. Cloud Area Economic Development Partnership). As of the drafting of this memo no additional prospects have contacted the City. While creation of a new TIF district would be dependent upon projects moving forward, the EDA does have temporary authority to use excess TIF revenue in existing districts withheld for administration purposes for economic development purposes external to the district. I will provide an update on several potential project leads (confidential) at the EDA meeting as requested. Action: Additional discussion on this item is kindly requested. P CITY OF ST. J OSEPH www. cityo(stjoseph.com PRESS RELEASE Input on Available Stimulus/Jobs Administrator Creation Programs Sought Judy Weyrens Mayor St. Joseph, Minnesota: July 22, 2010 Al Rassier Contacts: Dale Wick, St. Joseph EDA Chairperson (320- 363 -7201) Councilors Judy Weyrens, St. Joseph City Administrator (320- 363 -7201) Steve Frank Cynthia Smith - Strack, St. Joseph Economic Development Director (612- 232 -7399) Bob Loso Traci Ryan, TIF Consultant (320- 352 -2898) Renee Symanietz Dale Wick The St. Joseph Economic Development Authority (EDA) is seeking input from St. Joseph business owners and entrepreneurs ready to take advantage of temporary legislation designed to EDA create jobs. On April 1, 2010 Minnesota Governor Tim Pawlenty signed into law the Minnesota Carolyn Yaggie— Jobs Bill (HF 2695/SF 2568). The bill contains a number of provisions relating to economic Heinen development tools that are potentially beneficial to cities. Ken Jacobson Al Rassier The St. Joseph EDA would like to hear from entrepreneurs and business owners who are Tom Skahen interested in construction or expansion within the next year. St. Joseph EDA Representatives Dale Wick would like to take advantage of the following job creation mechanisms authorized by the Mn. Jobs Bill, subject to approval by the City Council: • Temporary expanded authority to use economic development tax increment financing for non - industrial /technology uses. Projects must begin by July 1, 2011. • In conjunction with the expanded TIF authority, use of excess TIF revenues to assist private development by July 1, 2011. • Establishment of a compact development tax increment financing district. St. Joseph EDA Chairperson Dale Wick says "The temporary job creation measure is a rare opportunity and a strong incentive for anyone seriously contemplating business start-up or expansion. In St. Joseph we'd like to maximize that incentive by grouping several projects into one overall package." Business owners and entrepreneurs that would like to learn more about the temporary incentives are encouraged to contact the St. Joseph EDA. "We are fortunate to have a strong core of businesses and a variety of industries within the City of St. Joseph" says Mayor and EDA Board Member Al Rassier. "We also know that construction was a driving force in our local economy that has suffered since the downturn. This is a limited -time opportunity that can potentially benefit our strong businesses, our entrepreneurs, and our construction workers ". The economic development incentives available through the St. Joseph EDA are scheduled to expire on June 30, 2011. # ##