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HomeMy WebLinkAbout08-02 - ADMIN Resolution - Economic Development Authority - 2008/03/03ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 08-02 RESOLUTION ESTABLISHING A REINVESTMENT ASSISTANCE PROGRAM POLICY BE IT RESOLVED By the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. Minnesota Statutes, Sections 469.090 through 469.1082 (the "Act") provides for the establishment of an Economic Development Authority by a municipality. 1.02. The City Council of the City of St. Louis Park (the "City") duly established the Authority pursuant to the Act to facilitate and assist economic development in the community. 1.03. Pursuant to the Act, the Authority is authorized to cavy out activities for the economic development and redevelopment of property in the City, including loans or grants of Authority development funds for private redevelopment projects benefiting the City as a whole. 1.04. The Board of the Authority desires to adopt a Reinvestment Assistance Program Policy to provide guidelines for the use of Authority loans or grants for redevelopment projects requiring assistance of less than $500,000. 1.05. Because some loans or grants approved under the proposed Reinvestment Assistance Program Policy (the "RAP Policy") would constitute business subsidies under Minnesota Statutes, Sections 116J.993 to 116J.995, the Authority has proposed an amendment to its Business Subsidy Policy and has on this date held a public hearing on the proposed amendment upon duly published notice, at which all interested persons were given an opportunity to be heard. 1.06. The Authority has reviewed the RAP Policy attached hereto as Exhibit A and the amended Business Subsidy Policy attached hereto as Exhibit B and desires to adopt such policies. Section 2. Authority Approval; Other Proceedings. 2.01. The RAP Policy and Business Subsidy Policy as presented to the Board are hereby in all respects approved. 2.02. Authority staff and consultants are authorized to take any actions necessary to cavy out the int nt of this resolution. Administration: Adopted by the Economic Development Authority Ma 3! 8_ ctor Pr ident Attest Secretary 67 EDA Resolution 08-02 -2- EXHIBIT A St. Louis Park MINNESOTA Reinvestment Assistance Program POLICY & APPLICATION Adopted March 3, 2008 Conformance with the attached Policy does not entitle any applicant to financial assistance under this program. This Policy states the current minimum and desired qualifications necessary to approve an application. The St. Louis Park Economic DevelopmentAuthorlty (EDA) retains the right to accept or deny applications on the basis of evaluating additional criteria it deems prudent and necessary. All applicants are subject to approval by the St. Louls Park EDA or its designee(s). This program may be amended or discontinued at any time without prior notice EDA Resolution 08-02 -3- For the purpose o£this Application, the "Cit"steal/a/so mean the St. Louis Park Economic Deve%pmentAuthoriry (EDA), which conducts various economic development, housing and redevelopmentprograms and activities within the Ciry o£St. Louis Park. `Wedeveloper"shal/mean the business entity undertaking the proposed redevelopment (this may include the property owner). GENERAL POLICY: The purpose of this Policy is to establish the City's position relating to the use of Reinvestment Assistance (loans or grants) from the EDA's Development Fund for private redevelopment projects which benefit the City. This Policy shall be used as a guide in reviewing and processing requests for redevelopment projects requiring less than $500,000 in financing. The Reinvestment Assistance Program will generally be considered in situations where the size and cost of the proposed project do not justify the time and expense needed to create and administer a tax increment finance (TIF) district. The primary purpose of the Reinvestment Assistance Program is to encourage the reinvestment in commercial, industrial, or mixed use areas in St. Louis Park that would not otherwise redevelop or see significant new investment "but for" the assistance provided. Grants or loans may be provided when the economics of property reuse cannot be overcome with conventional financing alone and where there is a compelling public interest in seeing the redevelopment/reinvestment occur at the proposed location. The goal of the Reinvestment Assistance Program is to revitalize neighborhoods by eliminating or substantially rehabilitating structures that negatively impact surrounding properties. The resulting redevelopment and/or new investment should bring the underlying commercial or industrial property to the highest and best use consistent with the city's Comprehensive Plan. The project should also have the potential to serve as a catalyst for additional neighborhood reinvestment. Each project will be evaluated on a case-by-case basis in accordance with the Qualifications outlined within this document. Whenever possible the City's preference is to structure the Assistance in such a way as to allow it to be paid back. It will be at the EDA's discretion as to whether the Assistance is provided in the form of a loan or grant. This program must not be a redeveloper's sole source of financing. It is not to be utilized in lieu of commercial lending but in participation with such lending sources. Assistance will be considered upon prior evidence that all other funding sources have been exhausted. All projects approved pursuant to this Policy that constitute a business subsidy under Minnesota Statutes, Sections 116J.993 through 116J.995, as amended, will be subject to the City of St. Louis Park/St. Louis Park Economic Development Authority Business Subsidy Policy. OBJECTIVES: The EDA will consider providing Reinvestment Assistance to facilitate private redevelopment projects to achieve one or more of the following purposes: • Revitalize identified key areas of the city through the replacement of blight, nonconforming uses and replacement of other negative influences with high quality, private development. EDA Resolution 08-02 -4- • Serve as a catalyst to encourage further private "spin-off development within tired, deteriorated, or functionally obsolete areas so as to lead to their economic stabilization and revitalization. • Expand the municipal tax base. • Retain local jobs and/or increase the number and quality of jobs (e.g. stable employment with attractive wages and benefits). • Encourage projects that exhibit efficient urban design; quality architecture and materials; sustainable "green" design; energy efficiency; enhanced stormwater management; improved public safety; and decrease the capital and operating costs of local government. • Promote principles related to Livable Communities and Transit Oriented Development so as to create compact, efficient mixed-use developments that include: attractive design, quality amenities (e.g. public art) as well as pedestrian and transit friendly environments. • Fulfill the strategic directions outlined in Vision St. Louis Park. ELIGIBLE PROJECT COSTS: Project expenditures considered extraordinary (over and above what a developer would typically incur in a traditional urban and suburban development) are eligible for reimbursement with Reinvestment Assistance. These may include: • Site -related work including: contamination clean up, soil correction, site regrading, and pilings • Utility relocation or upgrades • Street widening and/or repair • Environmental studies and regulatory compliance • Relocation assistance for property owner and/or tenants • Asbestos abatement • Vapor mitigation • Building demolition • Nonconforming use removal • Building rehabilitation • "Green Building" features • Property writedown to comparable land -only values • Interest rate write downs The Revitalization Assistance Program is based upon demonstrated need. A business or developer must provide the EDA with written evidence (through its proforma and lender commitment letter) that the requested amount is warranted, necessary and that there are no other viable financing sources available. In no case shall the total amount of requested assistance for any one project exceed $500,000. INELIGIBLE PROJECT COSTS: Reinvestment Assistance will not be provided to projects that: • Involve an excessive land and/or property price (i.e. where the acquisition price is substantially in excess of market value as determined by an independent appraisal of the property). EDA Resolution 08-02 -5- • Give a significant competitive financial advantage over similar projects in the area due to the use of the Assistance. Redevelopers should provide information to demonstrate Reinvestment Assistance will not create an undue competitive advantage. • Place extraordinary demands on City services. • Would likely generate environmental problems in the opinion of the local, state, or federal governments. • Continue and/or expand nonconforming uses. • Refinance existing debts. • Acquire real property held primarily for sale or investment. • Speculate in any kind of property, real or personal, tangible or intangible. • Involve business activities that are inconsistent with Vision St. Louts Park including but not limited to: sexually oriented businesses, pawn shops, tattoo parlors, off sale liquor stores, tobacco shops, gun shops, check cashing businesses or those considered to create environmental problems due to the type of operation or processes involved in the business operation. QUALIFYING PROJECTS: All proposed redevelopment projects considered by the City of St. Louis Park must meet each of the following minimum qualifications and will also be evaluated based on their ability to meet the desired qualifications for assistance. However, it should not be presumed that a project meeting the qualifications will automatically be approved. Meeting the qualifications creates no contractual rights on the part of any potential redeveloper to receive financial assistance. MINIMUM QUALIFICATIONS: A. The proposed redevelopment project must be located within the City of St. Louis Park and eliminate blight (obsolete, structurally substandard/contaminated buildings) and/or nonconforming uses; and correct adverse soil conditions. B. The proposed redevelopment project must be consistent with the City's Comprehensive Plan and Zoning Ordinance, or required changes to the Plan and Ordinance must be under active consideration by the City at the time a Redevelopment Contract providing the assistance is scheduled for approval. C. The redeveloper must demonstrate through its proforma that the proposed redevelopment project is not financially feasible "but -for" the use of Reinvestment Assistance. D. The redeveloper must provide a letter of financing commitment from a commercial lender which also indicates its inability to provide all the necessary financing to complete the proposed project, the lack of additional financing and the necessity for the Reinvestment Assistance. E. The redeveloper must provide market data, tenant letters of intent or other evidence which support the market potential/demand for the proposed project. EDA Resolution 08-02 -6- F. Prior to approval of a financing plan, the redeveloper shall provide any requested market and financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other information as the City or its financial consultants may reasonably require in order to proceed with an independent review of the application. G. The redeveloper must provide adequate financial guarantees to ensure completion of the project. These may include, but are not limited to: assessment agreements, letters of credit, personal deficiency guarantees, guaranteed maximum cost contract, etc. H. The redeveloper must be able to demonstrate previous successful general redevelopment capability as well as specific capability in the type and size of redevelopment proposed. Assistance will not be provided when the redeveloper's credentials, in the sole judgment of the City, are inadequate due to past track record relating to: quality and completion of projects, general reputation and/or bankruptcy, or other problems or issues considered relevant by the City. I. The redeveloper must retain ownership of the project at least long enough to complete it, to stabilize its occupancy, and to establish the property management. J. Redevelopment projects must create a higher ratio of property taxes paid before and after redevelopment. A 1:2 ratio of taxes paid before and after redevelopment is required. K. The proposed redevelopment meets many of the performance benchmarks needed to achieve Leadership In Energy and Environmental Design (LEED) certification for its particular project type. Redeveloper must provide a list of qualifying activities or project features to be incorporated into the project. L. The redeveloper must be willing to enter into a redevelopment contract with the EDA which outlines the requirements and obligations of both parties for the provision of Assistance. M. All redevelopment projects are subject to a provision within the redevelopment contract with the EDA which allows the EDA to review the necessity for the Reinvestment Assistance upon project completion, leasing and/or sale as well as the recapture any unneeded Assistance. DESIRED QUALIFICATIONS: A. The proposed project should be located within areas of the City envisioned for reinvestment and/or revitalization. B. The proposed project is consistent with the City's Strategic Plan and Vision St. Louis Park C. Redevelopment projects should meet public policy objectives as determined by the City Council. Preference will be given to projects that: EDA Resolution 08-02 -7- • Include efficient urban architectural design, high quality construction and materials, additional green space. • Provide significant improvement to surrounding land uses, the neighborhood, and/or the City. • Aim to clean-up contaminated sites and buildings. • Facilitate the expansion/location of a business or industry with an environmentally sound track record. • Provide significant new and/or retained employment that provides wages and/or benefits above the MSA average. • Provide the highest and best desired use for the property. • Fill an unmet market need. • Consistent with Livable Communities and Transit Oriented Development principles. • Qualify for Leadership In Energy and Environmental Design (LEED) certification. • Reduce demands on City services (i.e. public safety). • Request multi-year financing. APPLICATION PROCEDURE: 1. Meet with appropriate City staff to discuss the scope of the project, anticipated extraordinary costs, financial needs, public participation being requested, time schedule, and other information as may be necessary. The loan/grant request shall be reviewed by City staff on a preliminary basis as to the feasibility of the project. 2. If, in staffs judgment, the project appears to meet the Program's objectives and the amount of requested assistance appears reasonable, the applicant may elect to file a formal application for Reinvestment Assistance at which time the developer will be asked to submit a $2,000 Application Fee and place $5,000 in escrow for related administrative expenses. Additional funds may be required if expenses are incurred beyond the $5,000 escrow. 3. If the project is approved and the applicant proceeds with the project, the EDA shall reimburse the applicant any unused portion of the deposit as of the date of execution of the redevelopment contract. If the applicant does not proceed with the project, the EDA shall reimburse the applicant for the unused portion of the deposit as of the date that the EDA is notified in writing that the applicant desires to withdraw its application. 4. Applications will be considered by the EDA in Study Session at which staff will present the proposed, project and its findings. The applicant may also make a formal presentation of the project. 5. Following the necessary financial analysis and preparation of detailed plans, the EDA will determine whether the proposed project is sufficiently consistent with the Policy to merit funding. Upon formal approval and submission of qualified costs, Reinvestment Assistance will generally be disbursed over a multi-year period. Any request for upfront assistance will be evaluated on its own merit in accordance with the City's general financing policies. EDA Resolution 08-02 -8- Reinvestment Assistance Program Application General Information 1. Business Name: Address: Contact Person: Telephone Number: Email Address: 2. Brief description of the business: 3. Proposed redevelopment project: business type(s) and/or use(s), prospective tenants, building(s) square footage, number of units (for housing projects), and building height and materials. Please provide a preliminary site plan. Site Information/Identification 4. Location and address of project. Please provide a map depicting where project will be located within the city. 5. Size of project area: 6. Is any of the proposed project area blighted, contaminated or environmentally challenged? If yes, please explain. 7. Present ownership of the site: 8. Does developer control all the parcels required for the proposed development? Please explain. 9. If the property is to be purchased, what is the proposed closing date? 10. After completion of the proposed development who will own the project site? Project Site Analysis 11. Total Estimated Market Value of project upon completion: $ 12. Estimated real estate taxes of project upon completion: $ (Please show calculations) 13. Project construction schedule: EDA Resolution 08-02 -9- a. Estimated construction start date: b. Estimated construction completion date: C. If phased project: year % completed year % completed 14. Name & address of architect, engineer, and general contractor. 15. Describe current conditions of the area surrounding the project site. Describe how redevelopment will improve conditions in the surrounding area. 16. Expected general traffic impacts (projected on/off street parking needs, projected auto/truck counts, traffic flow, peak traffic periods, proximity to public transit, etc.) 17. What is the existing Comprehensive Guide Plan Land Use designation and zoning of the property? Include a statement as to how the proposed redevelopment will conform to the current land use designation and how the property will be zoned or rationale as to why changes may be necessary. 18. Is the proposed project site located in a City -designated redevelopment area? 19. Is the proposed project part of a mixed use development? 20. Does the proposed project incorporate principles of Livable Communities and/or Transit Oriented Development? 21. Will the project incorporate LEED (Leadership in Energy and Environmental Design) principles? Will it likely achieve certification? 22. Is redeveloper willing to provide the EDA with a list of LEED points likely achieved? 23. Is there a positive environmental impact associated with this project, such as ponding or other environmental infrastructure? Cost/Financial Analysis 24. Please submit project proformas (sources and uses with and without assistance) indicating total estimated project costs (such as those listed below) and return on investment. a. Land Acquisition $ b. Soil Correction/Remediation $ C. Demolition $ d. Site Grading and Excavation $ e. Utilities $ f. Road Improvements $ g. Curb, gutter, parking lot, sidewalks $ h. Building Construction $ i. Parking Ramp (if applicable) $ j. Landscaping $ EDA Resolution 08-02 25 26. 27. 28. 29. -10- k. Equipment $ 1. Architectural & Engineering Fees $ M. Legal Fees $ n. Financing Costs $ o. Broker Costs $ P. Developer Fee $ q. Contractor Fees $ r. Contingencies $ S. Other (please specify) $ t. TOTAL $ Sources of Financing: a. Equity $ b. Loan Source(s) $ C. Other Sources (explain) $ Estimated amount of Reinvestment Assistance required to make project viable. Please submit an itemized list of project costs for which Reinvestment Assistance is being requested (See above list of eligible costs). Specific reasons why, "but for" the use of Reinvestment Assistance, this project would not be possible. What other alternative financing sources have been sought and why are they not adequate or feasible? job Creation/Retention 30. 31 How many FTE (Full Time Equivalent) jobs are expected to be retained in the City as a direct result of this project? What is the expected pay range of these retained positions (without benefits)? $0 to $14,999 0 $ $15,000 to $24,999 0 $ $25,000 to $29,999 0 $ $30,000 to $44,999 0 $ $45,000 to $59,999 0 $ $60,000 & Up 0 $ TOTAL 0 $ EDA Resolution 08-02 -11- 32. How many FTE (Full Time Equivalent) jobs are expected to be created in the City as a direct result of this project? 33. What is the expected pay range of these new positions (without benefits)? $0 to $14,999 0 $ $15,000 to $24,999 0 $ $25,000 to $29,999 0 $ $30,000 to $44,999 17 $ $45,000 to $59,999 0 $ $60,000 & Up 0 $ TOTAL 0 $ 34. Please describe any other economic/social impacts this project is likely to have on the community. Developer Background 35. Background on the developer's company, principals, and history. Please list previous related projects and locations as well as experience of this particular development team working together. 36. Has developer, developer's company, partner or related affiliate ever filed bankruptcy? Yes, No. If yes, please explain. 37. Municipal Reference. Please name any other municipalities wherein the applicant, or other corporations with which the applicant has been involved, has completed similar developments within the last five years. EDA Resolution 08-02 -12- EXHIBIT B CITY OF ST. LOUIS PARK ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY POLICY As Amended March 3, 2008 1. PURPOSE Business subsidies are considered investments in the City of St. Louis Park ("City") and are meant to encourage desirable development and/or redevelopment that benefit the City. The purpose of this policy is to establish the City's criteria relating to the provision of business subsidies for private development. This policy shall be used as a guide in processing and reviewing applications requesting business subsidies. The City of St. Louis Park and St. Louis Park Economic Development Authority ("EDA") maintain several policy documents which speak to the general goals and objectives for the provision of public assistance for private development or redevelopment activities. These documents include, but are not limited to: The Economic Development Strategic Plan for Housing and Business, the Development Fund Policy, the Tax Increment Financing Policy, and the Reinvestment Assistance Program Policy. The further intent of this policy is to satisfy the requirements of the Business Subsidies Act (the "Act'), Minnesota Statutes, Sections 116J.993 through 116J.995, as amended. Terms used in this Policy are intended to have the same meanings as if used in the Act, and this Policy shall apply only with respect to subsidies granted under the Act if and to the extent required thereby. 2. STATUTORY LIMITATIONS The City and EDA's ability to grant business subsidies is governed by the limitations established within the Act and every business subsidy is subject to the requirements set forth within the Act. 3. PUBLIC PURPOSE REQUIREMENT All business subsidies must meet a public purpose as provided in Section 5 that may include, but must not be limited to, increasing the property tax base. All business subsidy recipients must enter into a business subsidy agreement with the City and EDA that complies with Minnesota Statutes, Section 116J.994, subd. 3. 4. CIRCUMSTANCES FOR APPROVING A BUSINESS SUBSIDY a. All business subsidies approved by the City and EDA should meet the criteria set forth herein. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual rights on the part of any potential developer or the City or EDA. EDA Resolution 08-02 -13- b. All proposed projects must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to the plan and ordinances must be under active consideration by the City at the time of approval. c. Potential recipients shall be required to provide such studies, reports, appraisals, information or other data as may be requested by the City and EDA prior to consideration of a request for business subsidy. d. Business subsidies will not be provided to projects that have the financial feasibility to proceed without the benefit of the subsidy. In effect, business subsidies will not be provided solely to broaden a developer's profit margins on a project. e. All business subsidy requests shall meet the "but for" test or otherwise demonstrate why a business subsidy is necessary and serves a public purpose as described in this policy. The "but for" test means that the project would not develop solely on private investments in the reasonable future. The developer shall provide findings for the "but for" test. If tax increment financing is used to grant a subsidy, the recipient must demonstrate compliance with all statutory requirements of the TIF Act, including the "but for" test. The potential recipient will be required to provide all documentation necessary to make the requisite findings under the TIF Act and the Act. f. All projects requesting business subsidies will be evaluated to determine if their business assumptions are reasonable, their financial projections are sound and their proposed venture(s) are likely to be successful. 5. PUBLIC PURPOSE CRITERIA a. Every business subsidy request will be evaluated according to the public purpose criteria specified below which shall apply to all potential recipients. • Support the expansion of businesses that have an environmentally sound track record and provide desirable goods and services. • Increase the community's property tax base (e.g., generate a net increase in the amount of property taxes paid before and after redevelopment). • Create quality, new jobs (e.g., stable employment and/or attractive wages and benefits). • Retain quality, existing jobs (where job loss is specific and demonstrable). • Eliminate or prevent "substandard" or "blighted" areas. • Cleanup contaminated properties. • Reduce public health risks, safety concerns or criminal activity. • Promote revitalization or economic diversification of neighborhoods. • Develop/redevelop underutilized properties. • Stimulate additional investment or "spin-off' businesses and jobs in the area. • Encourage full utilization of existing or planned infrastructure improvements. The above list is not exclusive; the City and EDA will consider public purposes that otherwise meet their development and redevelopment goals. EDA Resolution 08-02 -14- b. Except as provided in Section 6 below, each recipient of a business subsidy must create or retain a number of jobs to be specified in the business subsidy agreement.. There may be separate goals for the number of part-time jobs or full-time jobs. Preference will be provided to those projects that create and/or retain a significant number of quality jobs as defined above. In cases where the public purpose is the retention of existing jobs, the recipient of the subsidy must demonstrate that job loss Is specific and demonstrable. The setting of specific job goals will be sensitive to local economic conditions, external economic forces over which neither the grantor nor the recipient of the subsidy has control, the individual financial resources of the recipient and the competitive environment in which the recipient's business exists. c. Except as provided in Section 6 below, each recipient of a business subsidy must meet wage goals for the jobs created or retained. The goals will be specified in the business subsidy agreement. Preference will be provided to projects that create and/or retain stable jobs within the City that offer wages significantly higher than the Federal minimum wage and attractive benefits. In all cases, 90% of the jobs created or retained as a result of any business subsidy approved by the City and EDA must pay at least 110% of the Federal minimum wage for full-time and part-time employees 6. CRITERIA WHEN JOB CREATION/RETENTION IS NOT A GOAL The grantor may determine, after a public hearing, that job creation or job retention is not a goal of the business subsidy. In those cases, the recipient must meet at least one of the following minimum requirements: a. The proposed business subsidy must accomplish the removal, rehabilitation or redevelopment of, or prevention of development or spread of, a blighted area as defined by Minnesota Statutes, Section 469.002, subd. 11, or must constitute a cost of correcting conditions that permits designation of a redevelopment district or renewal and renovation district under Minnesota Statutes, Section 469.174 to 469.179; or b. The proposed business subsidy must improve public infrastructure or public facilities, including without limitation streets, sewers, storm sewers, streets, parks, recreational facilities, and other City facilities; or c. The proposed business subsidy must remove physical impediments to development of land, including without limitation poor soils, bedrock conditions, steep slopes, or similar geotechnical problems. The above requirements must be expressed as specific, measurable and tangible goals in each business subsidy agreement. The job and wage goals that would otherwise be required may be set at zero. 7. FIVE YEAR RULE Each recipient of a business subsidy must agree to continue operation within the City for a minimum of five years after the benefit date. After a public hearing, the grantor may authorize the recipient to move outside the City within the five-year period. EDA Resolution 08-02 -15- 8. OTHER APPLICABLE POLICIES Each business subsidy will be evaluated against the criteria in this policy but also against other applicable City or EDA policies including, but not limited to, the Tax Increment Financing Policy, the Development Fund Policy, the Economic Development Strategic Plan for Housing and Business, and the Reinvestment Assistance Program Policy. 9. FAILURE TO MEET SPECIFIED GOALS Each business subsidy agreement will require a recipient failing to meet the specified goals by the specified date to pay back the assistance plus interest to the grantor, or at the grantor's request, to the account created under Minnesota Statutes, Section 116J.551. Any repayment may be prorated to reflect partial fulfillment of goals. The interest rate must be set at no less than the implicit deflator as defined by section 116J.994, subd. 6. The grantor may, after a public hearing, extend the period for meeting job and wage goals for up to one year. The grantor may extend the period for meeting any other goals for any period specified by the grantor, by documenting in writing the reason for the extension and filing that explanation with the Department of Trade and Economic Development along with the grantor's next annual report on business subsidies. 10. DEVIATION FROM POLICY When granting a business subsidy, the grantor may deviate from the criteria in this Policy by documenting in writing the reason for the deviation and filing that explanation with the Department of Trade and Economic Development along with the grantor's next annual report on business subsidies. The grantor will not approve a deviation from these criteria unless the applicant provides a written request describing why the deviation is needed to permit the proposed project to proceed, and the grantor determines in its sole discretion that such deviation is reasonable and necessary. 11. COMPLIANCE AND REPORTING REQUIREMENTS a. Any subsidy granted by the City and EDA may be subject to the requirement of a public hearing, if necessary, and must be approved by the City and EDA. b. It will be necessary for both the recipient and the EDA to comply with the reporting and monitoring requirements of the Act. 12. RIGHT TO MODIFY POLICY The City and EDA reserve the right to modify this Policy from time to time in accordance with the procedures of the Act. Amendments to this Policy are subject to public hearing requirements pursuant to Minnesota Statutes, Sections 116J.993 through 116J.995.