1 / 21

Ed Hodder Economic Analyst, Analysis and Evaluation MN Department of Employment and Economic Development

Ed Hodder Economic Analyst, Analysis and Evaluation MN Department of Employment and Economic Development Evaluating the Deal: Criteria at the Local Level, Hibbing August 18, 2004. Presentation Goals. Overview of Law Definition of criteria Operating requirements Results

erika
Télécharger la présentation

Ed Hodder Economic Analyst, Analysis and Evaluation MN Department of Employment and Economic Development

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ed Hodder Economic Analyst, Analysis and Evaluation MN Department of Employment and Economic Development Evaluating the Deal: Criteria at the Local Level, Hibbing August 18, 2004

  2. Presentation Goals • Overview of Law • Definition of criteria • Operating requirements • Results • JOBZ reporting requirements

  3. What Is the Business Subsidy Law?Overview • The business subsidy law M.S. §116J.993 through §116J.995 outlines the operating and reporting requirements for awarding business subsidies in Minnesota. • Under the JOBZ law M.S. §469.320 a subzone administrator must comply with the reporting and operating requirements under M.S. §116J.993 through §116J.995.

  4. What Is the Business Subsidy Law?Definition • Tax exemptions or tax credits and local sales tax available to a qualified business located in a job zone; • State and local government agency grants; • Contributions of personal property, real property, or infrastructure; • Loans at rates less than commercially available; • Tax/fee reductions or deferrals including tax increment financing (TIF); • Guarantees of payments; and • Preferential use of government facilities.

  5. What Is the Business Subsidy Law?Entities Subject to the Law • Grantor or subzone administrator: • The legal representative designated by the local government unit to administer a subzone; and • Any state or local government agency with the authority to grant a business subsidy.

  6. What is the Business Subsidy Law?Entities Subject to the Law • Recipients or Qualified Businesses: • A for-profit business; and or • A person that carries on a trade or business at a place of business located with in a Job Opportunity Zone (JOBZ).

  7. Criteria Definition • Uniform standards or guidelines by which a grantor and or subzone administrator bases its decision to award any business subsidy.

  8. Operating Requirements • Grantors and or subzone administrators may not provide business subsidies until they have: • Held a public hearing on criteria: • Criteria must include a specific wage floor for wages paid and jobs created. • The wage floor may be stated as a specific amount or may be stated as a specific formula that will generate a specific dollar amount.

  9. Operating Requirements • A grantor or subzone administrator may deviate from the criteria only in writing and provide a copy to DEED. • A copy of the criteria must be submitted to DEED with the first annual report.

  10. Results – Specific Wage Floor • A significant number grantors submitted criteria policies prior to the changes made in the 2000 legislative session. • Grantors must amend their criteria policies to include a specific wage floor for wages to be paid and jobs created.

  11. Results – Specific Wage Floor • Of the 260 criteria policies submitted by grantors from 2000 to 2004 currently in place, 136 policies have a specific wage floor from $5.15 to $19.30.

  12. Results – Specific Wage Floor

  13. Results – Wages and Health Benefits

  14. Results - Job Creation GoalsOne job per $ of subsidy

  15. Results – Job Creation Goals and Other Provisions • One policy has a job creation goal of 60% new jobs created to be held by city residents. • One policy requires businesses with at least 100 FTE’s to spend 5% of the loan amount on training programs and to encourage housing. Businesses with at least 75 FTE’s to offer a health plan.

  16. Results – Capital Investment • One criteria policy requires a capital investment of at least $500,000 for inclusion into JOBZ program. • One criteria policy requires an investment of at least $100,000 for a new business and $50,000 for a existing business.

  17. JOBZ Reporting RequirementsReports from Grantors to DEED • Each year subzone administrators must file a Minnesota Business Assistance Form (MBAF) with DEED for each JOBZ business subsidy agreement. • Report annually after the approval date for the duration of the zone term. • Report at a minimum, information the law requires recipients or qualified businesses to report to grantors or subzone administrators. • The MBAF is on DEED’s website and each year’s reports are due April 1, 2005 from grantors.

  18. In Conclusion • Criteria development is a fundamental first step toward accountability and for evaluating the success of the JOBZ program.

  19. To learn more about JOBZ, information is available on DEED’s website at www.deed.state.mn.us (Click on the JOBZ logo) • Copies of submitted criteria policies and the law are available on DEED’s website at www.deed.state.mn.us (Click on Community Development, then Business Subsidies Reporting). • Questions can be directed to Ed Hodder at 651-296-0580 or Ed.hodder@state.mn.us

More Related