HomeMy WebLinkAboutBoard of Commissioners - Minutes - 06/13/2006MINUTES OF THE
OTTER TAIL COUNTY BOARD OF COMMISSIONERS
Government Services Center, Commissioners' Room
500 Fir Avenue W., Fergus Falls, MN
Tuesday, June 13, 2006
9:30 a.m.
Call to Order
The Otter Tail County Human Services Board convened Tuesday, June 13, 2006, at
9:31 a.m., at the Otter Tail County Government Services Center with Commissioners
Roger Froemming, Chair; Dennis Mosher, Vice-Chair; Bob Block, Syd Nelson, and
Malcolm Lee present.
Approval of Agenda
Motion by Nelson, second by Mosher, and unanimously carried to approve the Human
Services Board agenda of June 13, 2006, as mailed.
Approval of Minutes
Motion by Froemming, second by Block, and unanimously carried to approve the Human
Services Board minutes of May 23, 2006, as presented.
Legislative Update
Court Services Director, Chuck Kitzman, provided a draft Minnesota Association of County
Probation Officers 2006 Session Summary dated May 25, 2006. He reviewed the Public
Safety Omnibus Policy Bill and discussion took place regarding Drug Courts.
Out of State Conference Attendance
Motion by Lee, second by Block, and unanimously carried to authorize Public Health Nurse,
Marion Kershner, to attend the World Tobacco Health Conference in Washington DC, July 12
through July 15, paid for by the Minnesota Department of Health Tobacco Free Communities
Grant held by Clay County, with expenses not to exceed $3,000.
Safe Community Coalition Funds
Motion by Mosher, second by Nelson, and unanimously carried to authorize the Public Health
Director to apply for Safe Community Coalition Grant Funds to be used for encouraging seat
belt usage. The motion approved entering into a grant agreement with the Minnesota
Division of Traffic Safety and authorizes the Public Health Director to execute the grant
agreements.
Public Health Staffing
Public Health Director, Diane Thorson, reported an increased refugee population caseload for
the nurses and increased workload due to Pandemic Flu planning. She requested hiring two
part time (30 hrs. per week) positions to replace one full time position that is currently vacant.
Ms. Thorson also requested hiring two intermittent Public Health Nurses to have staff
resources available for leaves of absences and/or increased caseloads during specific times.
Motion by Mosher, second by Lee, and unanimously carried to authorize the Public Health
Director to proceed with the hiring of two 30 hour per week positions in place of the current
full time, vacant position and two intermittent Public Health Nurses.
OTC Board of Commissioners' Minutes
June 13, 2006
Page 2
Employee Recognition
Chairman Froemming presented an appreciation plaque to Public Health Clerk,
Bernadine Lemke, and Public Health Nurse, Annette Wigert, and thanked them for their years
of public service with the County.
Human Services Department Staffing
Motion by Nelson, second by Mosher, and unanimously carried to authorize the Human
Services Director to replace a Child Protection Social Worker position with a temporary Child
Protection Social Worker position.
Bills & Claims
Motion by Nelson, second by Block, and unanimously carried to approve the Human Services
bills & claims as presented.
Adjournment
At 10:26 a.m., Chairman Froemming declared the meeting of the Otter Tail County Human
Services Board adjourned until 9:30 a.m. on Tuesday, June 27, 2006.
Dated: -"1'fi'-l-f/4,-""--"1+-/ _,.,~=o'---'lp'----1 f OTTER TAIL COUNTY HUMAN SERVICES BOARD
Call to Order
The Otter Tail County Board of Commissioners convened Tuesday, June 13, 2006, at
10:33 a.m., at the Otter Tail County Government Services Center with Commissioners
Roger Froemming, Chair; Dennis Mosher, Vice-Chair; Bob Block, Syd Nelson, and
Malcolm Lee present.
Approval of Agenda
Motion by Mosher, second by Nelson, and unanimously carried to approve the County Board
agenda of June 13, 2006, with one addition as follows:
County Attorney's Office -Out-of-State Travel Request
Approval of Minutes
Motion by Lee, second by Block, and unanimously carried to approve the County Board
minutes of June 6, 2006, as presented.
Approval to Pay Bills
Motion by Mosher, second by Block, and unanimously carried to approve payment of the
County Board bills per Attachment A of these minutes.
OTC Board of Commissioners' Minutes
June 13, 2006
Page 3
Out of State Conference Attendance
Motion by Block, second by Mosher, and unanimously carried to authorize attendance at a
National Training on crimes against children for Assistant County Attorney, Michelle Eldien,
located in Dallas, TX. Cost of the five day training is $400 with hotel and airfare estimated at
$840.00.
License Applications
Motion by Nelson, second by Mosher, and unanimously carried, to approve the following
applications for licenses:
*Sherrie Putnam
Hamburger Hollow
43077 County Highway 53
New York Mills, MN 56567
**Heisler's gravel and Rental Property Inc.
Heisler's Country Pub
47757 375th Ave
Vergas, MN 56587
+* Joseph Koep
Koep's
21136 County Highway 5
Clitherall, MN 56524
New York Mills Lions Club
New York Mills Airport
Newton Township
*Playtime Sports Bar & Ballroom Inc.
Playtime Sports Bar
4397 4 390th Street
Perham, MN 56573
On-Sale Wine and
On/Off-Sale 3.2 Malt Liquor
Consumption and Display (Set Up) Permit
Off-Sale 3.2 Malt Liquor
Temp. 3.2 On-Sale Malt Liquor
June 23 and 24, 2006
On-Sale Liquor and Sunday Liquor
+*Ye Olde Schoolhouse On/Off-Sale 3.2 Malt Liquor
24028 Emery Drive
Erhard, MN 56534
•subject to the approval of the County Attorney's office and to the approval of the e·ouniy Sheriffs office.
+SubJect to township review and approval.. ·
.. Subject to the remittance of the appropriate fees.
County Ditch No. 38
Ditch Inspector, Randy Wasvick, opened discussion regarding a petition that has been
received requesting impoundment of waters in Ditch No. 38. County Attorney, David Hauser,
stated that the petition should require a bond, an engineering plan, and a statement in the
petition that recognizes that the petitioner(s) are responsible for the cost of the requested
project. Mr. Hauser stated that this is not the case in this particular petition and the
appropriate action is to notify the petitioner that the Petition for lmpoundment for Ditch #38 is
not a valid petition. Mr. Hauser will draft an Order to Deny the Petition based on the fact that
there are no responsibilities for the cost.
OTC Board of Commissioners' Minutes
June 13, 2006
Page 4
RESOLUTION CALLING PUBLIC HEARING ON
SOLID WASTE REVENUE BOND PROJECT ON BEHALF OF
OTTER TAIL AG ENTERPRISES, LLC
Otter Tail County Resolution No. 2006 -45
Commissioner Nelson offered the following and moved its adoption:
BE IT RESOLVED by the Board of Commissioners of Otter Tail County as follows:
1. This Board has authority under the provisions of Minnesota Statutes, Sections
469.152 to 469.1651, as amended (the "Act"), to issue its revenue bonds to finance solid
waste facilities.
2. It has been proposed that the County issue revenue bonds pursuant to the Act
in the principal amount of up to $16.000,000 (the "Bonds") and loan the proceeds to Otter Tail
AG enterprises, LLC (the "Borrower") to finance the costs of acquiring and installing solid
waste facilities as part of the ethanol plant being developed by the Borrower in the County.
3. The Bonds will be limited obligations of the County and will be payable solely
from loan repayments to be made by the Borrower and any other security pledged by the
Borrower therefor.
4. A public hearing on the issuance of the Bonds is hereby called and shall be
held on at 10:00 o'clock A.M. on Wednesday, July 5, 2006, at the Commissioner's Room of
the Otter Tail County Government Services Center. 500 Fir Ave. W., Fergus Falls. The
County Auditor is hereby authorized and directed to cause notice of the hearing to be
published once in the official newspaper and in a newspaper of general circulation in the
County at least 14 days prior to the hearing.
Commissioner Block seconded the motion, and upon being put to vote, the above resolution
was adopted on a unanimous vote.
Adopted at Fergus Falls, Minnesota, this 13th day of June, 2006.
OTTER TAIL COUNTY BOARD OF COMMISSIONERS
Chemical Dependency Treatment Facility
Discussion took place regarding a proposed CD Treatment facility to be located on the north
side of the RTC campus. The County would own the building and lease it back to the State
for CD Treatment purposes. The building process would move forward through the Housing
& Redevelopment Authority and be paid off in 15 years. Discussion took place regarding
splitting off the land for the proposed facility.
OTC Board of Comm1ss1oners' Minutes
June 13, 2006
Page 5
Recess & Reconvene
At 11 :56 a.m., Chairman Froemming declared the meeting of the Otter Tail County Board of
Commissioners recessed for lunch break. The meeting was reconve~ed at 1 :08 p.m . .
Business Subsidy Policy
Upon a motion by Block, seconded by Lee, and unanimously carried, the Otter Tail County
Board of Commissioners adopts the "County of Otter Tail Business Subsidy Policy" as
presented by the County Attorney and attached to these minutes as Attachment B.
RESOLUTION CALLING PUBLIC HEARING ON
ABATEMENTS FOR
OTTER TAIL AG ENTERPRISES, LLC PROJECT
Otter Tail County Resolution No. 2006 -46
Commissioner Nelson offered the following and moved its adoption:
BE IT RESOLVED by the Board of Commissioners of Otter Tail County as follows:
1. This Board has authority under the provisions of Minnesota Statutes, Sections
469.1812 to 469.1815, as amended (the "Act"), to adopt an abatement resolution granting
abatements under the Act and retain the abatements to pay debt service on general
obligation abatement bonds. This Board also has authority under Minnesota Statutes.
Section 469.144, Subd. 1, to exercise the powers granted under Chapter 469 to a rural
development finance authority, including the power to assist in the financing of an ethanol
project.
2. It has been proposed that the County issue bonds pursuant to the Act (the
"Bonds") and loan approximately $5 million of the proceeds to Otter Tail AG Enterprises, LLC
(the "Borrower") to finance part of the costs of acquiring and constructing the ethanol plant
being developed by the Borrower in the County. The Bonds would be general obligations of
the County, payable primarily from abatements granted under the Act and retained by the
County to pay the debt service on the Bonds.
3. There has been presented to this Board a list of properties which are proposed
to be considered for abatement and the total estimated amount of the abatements.
4. A public hearing on the proposed abatements is hereby called and shall be held
on at 10:00 o'clock AM. on Wednesday, July 5, 2006, at the Commissioner's Room of the
Otter Tail County Government Services Center, 500 Fir Ave. W., Fergus Falls. The County
Auditor is hereby authorized and directed to cause notice of the hearing to be published in a
newspaper of general interest and readership in the County at least 1 O days prior to the
hearing.
Commissioner Lee seconded the motion, and upon being put to vote, the above resolution
was adopted on a unanimous vote.
OTC Board of Commissioners' Minutes
June 13, 2006
Page 6
Adopted at Fergus Falls, Minnesota, this 13th day of June, 2006.
Dated: ~1~~1JO/a OTTER TAIL COUNTY BOARD OF COMMISSIONERS
Amend the Established Time for Public Hearing
Motion by Mosher, second by Block, and unanimously carried to change the time for the
Public Hearing for the revenue bonds to finance solid waste facilities from 1 :00 p.m. on
July 5, 2006, to 10:00 a.m. on July 5, 2006.
Sewell Lake High Water Discussion
Sewell Lake Property Owner, Gerhard Knutson, expressed frustration with Otter Tail County
Ditch No. 70. More water is flowing into Sewell Lake than is going out, with the majority
flowing in because of runoff. He reviewed the current drainage system. Mr. Knutson stated
that, at the last meeting, it was stated that the ditch works. He noted that there is a 12" tile
that leaves the lake that is broken. The water is flowing over the ditch outlet and land around
the lake is flooding. These are indications, in his opinion, that the drainage system is not
working. The ditch was built in 1923 and followed M.S. 103E very closely. Mr. Knutson
stated that Lake Sewell is designed to rise and fall to maintain drainage systems from the
farm land. Because the DNR is opposed to putting in drainage systems to lower below the
Ordinary High Water Level (OHWL), which is the same as the natural overflow, it would not
help to install a larger outlet. Mr. Knutson concluded that the purpose of Lake Sewell is
strictly as an ag ditch which ignores the people on the lake and may have been advisable in
1923, but not in 2006. He requested; 1) a drainage system that considers lake owners, not
just ag, 2) a larger outlet on the lake, and 3) that the Planning Commission look at a long
term plan to consider how people are adversely affected with high and low water. Property
Owner, Jim Puchtel, expressed many of the same concerns as Mr. Knutson, including
concerns about water clarity and quality and issues with draining a wetland. Mr. Puchtel
expressed concern with not being able to use his lake shore property the past 4 to 5 years.
Highway Department High Water Discussion
Motion by Mosher, second by Froemming, and unanimously carried to approve Fergus Power
Pump to proceed with pumping to prevent Highway 88 from flooding, without the thirty day
bid period, because this is an emergency situation.
Highway Engineer, Rick West, opened discussion regarding CSAH No. 18 in the area of
Crooked Lake. He estimated the cost of a grade raise on the road at $500,000 to $600,000.
The option to petition for an outlet into Ditch No. 21 was discussed. Lengthy discussion took
place regarding the capacity of Ditch No. 21.
OTC Board of Commissioners' Minutes
June 13, 2006
Page 7
Motion by Froemming, second by Lee, and carried with Mosher abstaining to continue with
the restriction of the flow of water through the culvert under CH 122 between North and South
Turtle Lakes at approximately 3,000 gallons per minute as authorized by County Board
motion on May 9, 2006, for an additional 30 days.
State Funding for Damages from the Windstorm of June 20, 2005
County Coordinator, Larry Krohn, reported total storm damage expenses from the
June 20, 2005 windstorm, as $869,381.53. The County received $500,000.00 from the State
of Minnesota. Mr. Krohn presented the dollar amounts that are proposed to be paid out to
the townships, cities, and the County at a rate of $0.58 per dollar spent. Motion by Block,
second by Froemming, and unanimously carried to authorize payments to the appropriate
government entities as presented at the rate of $0.58 per dollar spent.
Adjournment
At 2:47 p.m., Chairman Froemming declared the meeting of the Otter Tail County Board of
Commissioners adjourned until 9:30 a.m. on Tuesday, June 20, 2006.
Dated: ~/ ,;._c)/ 2<," Co OTTER TAIL COUNTY BOARD OF COMMISSIONERS
l l
Attest: ~~ Larryl(J; h;;: Clerk
Froemming, Board of Commissioners Chair
CB/kd
6/13/2006 12:02:02
OTTER TAIL COU?ITY AUDITOR
PANELSON RECEIPTS AND DISBURSEMENTS SYSTEM WARRANTS FOR PUBLICATION
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment A, Page 1
IFD66 COUNTY 56 PAGE 1
WARRANTS APPROVED ON 6/13/2006 FOR PAYMENT 6/13/2006
VENDOR NAME
A.T.D.
A'VIANDS LLC
AMERICAN INST!TUJIONAL SUPPLY ARVIG COMMUNICATION SYSTEMS
ASSOCIATION OF MN COUNTIES AUTO SAFETY SERVICE BACHMAN PRINTING COMPANIES
BATTLE LAKE AUTO PARTS BATTLE LAKE MOTOR PATROL ASSN BERT'S TRUCK EQUIPMENT OF MHD BEYER BODY SHOP INC BLUFFTON OIL COMPANY
BOUND TREE MEDICAL LLC BAANDBORG LAW OFFICE BRANDON COMMUNICATIONS INC
BRANDT & MAGNUS P.A. BRAUN VENDING INC
BRETZ HARDWARE BRIGGS CORPORATION DOUG CANNELL
KAREN CANNELL CARQUEST AUTO PARTS
CATCO PAP.TS AND SERVICE CENTRAL SPECIALTIES INC CO OP SERVICES INC
COMMISSIONER OF TRANSPORTATION COOPERS TECHNOLOGY GROUP CREATIVE FORMS & CONCEPTS INC CULLIGAN WATER COND JONAI"HA.N DANNER
DENZEL'S REGION WASTE INC DICK'S STANDARD SERVICE DICTAPHONE
DILLON'S INC
KATHY DOMHOLT RANDY DORROW
DOUGLAS CO SHERIFF
EAST SIDE OIL COMPANIES ERICKSON ELECTRONICS EVERTS LUMBER CO
EXPENSE RECOVERY SERVICES FARGO FRETGHTLINER
FARGO GLASS AND PAINT CO FARNAM TIRE CENTER FARNAM'S GENUINE PAP.TS !NC FERGUS ELECTRIC
FERGUS FALLS NEWSPAPERS INC FERGUS FALLS POLICE DEPT FERGUS POWER PUMP INC
AMOUNT
297.00 11,330.06
65.55 200.00
120.00
1S.00 586.77 42.38 75.00 67.81
897.72 3,027.81 276.30
165.00 472.19
111. 50
33.351 13. 71
159.55
34. 951 13.04
51.59
655.45 300.00
1,761.02 130. 00 791.13 1,060.05 53.01
14.35 216.45
267.16 253.00 so.co
27.59 ~6.26
45.00
55.00 15.00 ss. 99 4,306.47 129.07
40B.96
70.00 583.86
269.07 5,038.88 362.64 6,150.00
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment A, Page 2
6/13/2006
12~02:02
OTTER TAIL COl.TNI'Y AUDITOR
PANELSON RECEIPTS AND DISBURSEMENTS SYSTEM WAR.RANTS FOR PUBLICATION
IFD66
COUNTY 56 PAGE 2
WARRANTS APPROVED ON 6/13/2006 FOR PAYMENT 6/13/2006
VENDOR NAME
FERGUS TTRE CENTER FERRELLGAS FORTWENGLER ELECTRIC INC
GERALD N EVENSON INC
GRAINGER INC
HALL GMC INC NEILL HARDINA
HARMS TOWING & SERVICE
OLIVER HARRISON
HAYBELLY'S DIRTWORKS INC
HEDAHLS HEADQUARTERS HEISLERS COUN1'RY OIL MARILYN HELLER
HENRY'S FOODS INC
HOLIDAY INN SANDY HOLO
HOOTS SPORTS THE INDEPENDENT INNOVAT1VE OFFICE SOLUTIONS
INTERSTATE INC J C'S GENERAL STORE ERWIN JOHNSON GARY JOHNSON K-MART ¥.EEPRS INC CY'S UNIFORMS KELLY SERVICES INC KRIS ENGINEERING INC
L & L SERVICE LAKE REGION HEALTHCARE CORP
LAKELAND TRUE VALUE HARDWARE
LAKES RADIO LAKEWAY MARK.ET LLC LARRY OTT INC TRUCK SERVICE
DEAN LARSON
JERRY LEIN ERIC L1EN MATTHEW BENDER & COMPANY INC MERITCARE MEDICAL GROUP
THE MIDWEEK MINN KOTA COMMUNICATIONS INC MINNESOTA WEST COLLEGE
MN CO INSl.JRANCE TRUST MN COUNTIES INS TRUST MN MOTOR COMPANY JIM MYHP.E
NAPA STANDARD PARTS OF WADENA NATURES GARDEN WORLD NELSON BP.OS PRINTING NELSON F'ORD LINCOLN MERCUPY IN
AMOUNT
1,294.43 81.41 34.97
25. 45
14. 84
1,841.31 120 .00 120.35 75.00
130.00 253.25 466.83 8.00
746.23 173.02 370.57
336.79
69 81 590.47
1,917.38
34.95
195.00
136.06 26.61
963.85 1,961.40 1,482.21
192.19 2,618.48
77.05
84.60
1,295.90 715.00 139.95
39. 98
7.40 199.50 11. 46
395.28
220.66 179.00 5,933.00
100.00
378.98 178.73
508.64 1,250.43 llol .08
88.51
6/13/2006 12:02:02
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment A, Page 3
OTTER TAIL COUNTY AUDITOR PA.NELSON RECEIPTS AND DISBURSEMENTS SYSTEM WARRANTS FOR PUBLICATION
IFD66
COUNTY 56 PAGE 3
WARRANTS APPROVED ON 6/13/2006 FOR PAYMENT 6/13/2006
VENDOR NAME
NELSON INTERNATIONAL NEW ULM POLICE DEPT
NEW YORK MILLS HERALD NEWSWEEK
NORTH UNION TEXACO OFFICEMAX CONTRACT INC
ONE CALL LOCATORS LTD OTTER TAIL CO SHERIFF
OTTER TAIL CO TRRA.SURER OTTER TAIL POWER CO OTTERTAIL AGGREGATE OTTERTAIL TRUCKING INC
OVERHEAD DOOR COMPANY
PAMIDA me 008 PARK REGION CO OP
PELICAN RAPIDS PRESS
PENROSE OIL COMPANY
PERHAM ACE HARDWARE
PERHAM CO OP CREAMERY
PERHAM ENTERPRISE BULLETIN PETE'S AMOCO
PIONEER JANITORIAL
PRAIRIE IMPLEMENT INC
PREMIUM WATERS INC
HENRY PRICE PRO AG FARMERS CO OP PROTECTIVE SAFETY SYSTEMS LLC
PUBLIC SAFETY CENTER INC
QUALITY TOYOTA RAPID CHEK INC R.ASMUSSON-SCHEDOWSKI VFW POST P..EVTEW ENTERPRISES INC ROTHSAY FARMERS CO OP MATTHEW SAURER BRIAN SCHLUETER CHERI SCHULTZ SERVICE FOOD SUPER VP.LU SEWER SERVICE SHERWIN WILLIAMS
SIGELMAN STEEL & RECYCLING INC SIMPLEXGRINNELL LP
SOUTH MILL SERVICE
STEINS INC STENERSON LUMBER
STEVE'S SANITATION INC STOP-N-GO STORES INC
STRAND ACE HARDWAAE STREICHERS JOURDAN SULLIVAN
AMOUNT
64.69
100.00
111. 60
55.76
128.59
269.93 170.62 4,235.74 •BB.07
46.86
6,815.46
6,126.80
902.00
42.57 1,247.04
136. 50 580. 44 75.58 157.78 270.27 1,255.99
90. 53 4.92 17.23
275.00 41.80
1,050.00
713. 26
60.92
701.99
100.00
321.09 34.11
13 .38 210.62 41.48 27.07
250.00
139.35
30.04
2,693.39
66.34
2,954.14.
16.23
1,884.00
45.3B
397.96
1,541.90
306.04
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment A. Page 4
IFD66
COUNTY 56 6/13/2006 12,02,02
OTTER TAIL COUNTY AUDITOR PANELSON RECEIPTS AND DISBURSEMENTS SYSTEM
WARRANTS FOR PUBLICATION PAGE 4
****
WARR.ANTS APPROVED ON 6/13/2006 FOR PAYME:NT 6/13/2006
VENDOR NAME
SUPERIOR LAMP INC SWANSTON EQUIPMENT CORP DAVID THOMPSON THYSSEN KRUPP ELEVATOR CORPORA TONY DOOM SUPPLY CO INC TRI STAR RECYCLING US POSTAL SERVICE
SUSAN ULSCHMID tnHVERSITY OF MN
tnHVEP.SITY OF MN-EXTENSION SER VALLEY SOFT WATER LTD VERGAS ACE HARDWARE
VIKING COCA-COLA WlillENA ASPHALT INC
WMlENA CO SHERIFF WADENA HIDE & FUR COMPANY
WALLWORK TRUCK CENTER
WASTE MANAGEMENT
WEETOWN OUTPOST
WELDING SUPPLIES & FIRE EQUIPM
WEST PAYMENT CENTER WILLMAR FIRS EQUIPMENT INC
PINAL TOTAL ...... .
AMOUNT
132.56
5,581.21
40.00 1,107.29
6B2.09 6,295.30
10,000.00 130. 56
16,100.00
34.00
27.50
19.99
148.75
266.26
39.00
14.65
5,273.50 53,953.48
30.00 5.27 184.37
2,277.S2
$208,954.54 ****
COUNTY OF OTTERTAIL
BUSINESS SUBSIDY POLICY
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment B, Page 1
Tht! following business subsidy cri1eria are intended to sa1isfy the-requiremenls of~·finnesota
Statutes Sections 1161.993 through 116J 995 (the "Acf')
A. BUSINESS SUBSIDY PUBLIC PURPOSE.
The public purpose of this p1.>licy shall be to accomplish the following on behalf of the
County of Oner Tail:
1. Enhance economic growth in Oner Tail County:
, Create high qu::il11y job gro\l,th in Oner Tail County:
J R~tain high quahly jobs m Oner Tail County; and
4. Enhance 1he value of surrounding: properties and subsidize the areJ.
This policy 1s adopted in complianct: with Mmn. Stat. 1161.994, subd. Z. A copy ofrhe
policy shall be subm1Ued lo the Minnesota Depanment of Employment and Economic
Development.
B. DEFlNITIONS.
I. Benefit Date
'"Benefit date'' means the date that the recipient rC"ceives lhe business subsidy. If
the business subsidy involves the purchase. lease or donation of physical
eqmpment, then the benefil date begins when the recipient puts the equipment
into service. Jf the busim:ss subsidy is for impro\ emcnts on property. then the
benefit date refers lo the earlier of either: (I) when lhe improvements are firushed
for the entire proJecl; or (2_) when a business occupies lhe property
2. Business
•·Business" means a for-profit business entlly or a non-profit entity meeting the
requirements ofMmn. Stat. 1161.993, subd. 3.
3. Business Subsidy
''Business Subsidy"' means a st.:ue or local government agrncy grant, con1ribution
of personal property, real propeny, infras1ructure, the principal amount ofa loan
at rates below those commerc1ally available to the recipicm. any reduction or
deferral of any tax or any fee, any guarantee of any payment under any loan, lease
or other obhgati-.>n, or any preferential use of government facilities given ro a
business. and as defined by the Acl.
4. County
··county" means the County of Otter Tail, Minnesota.
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment B, Page 2
C. MANDATORY CRITERIA
A project must meet the following mandatory cmena in order to be considered for a
business subsidy. The County reser\'cs the right to approve a project that varies from
these cri1C"n:i if the Coun1y deterrrnnes a valid public purpose will be served.
I. \Vage Floor. ff the project resulls in the creation of any johs, the wage for each
pan-time and full-11me job created must be \\ithin two years of the assistance 1s
received (as defined in the Act), at least equal to 125 percent ofMmnesota's
minimum wage as set fonh m Minn St:it. 177.2.J, or such greater amount as chi:
County may require for a specific project.
2. Rereollon of Jobs. ln cases where the objective is the retention of existing jobs.
the recipient of the study will be required to provide evidence which demonstrales
thal the loss of those jobs 1s specific and di:monstrable.
3. Public Purpose. The County must determine that the business subsidy meets a
public purpose and the reason that the business subsidy is needed.
4. Compliance with Act. The business subsidy from the County must satisfy all
requirements of the Act and all other legal requirements. In addition, the business
subsidy must meet any add1tion:il policies established by th.: County for the type
of business subsidy received.
5. Economic Feasibility. Thi: recipient must demonstrate to the satisfaction of the
County that it has adequate financing for the proJecc and that the project will be
completed in a timely fashion.
6. Retail or Service Business. A retail or service business will not be considered
for a business subsidy unless the project will create substantial quality
employment or a substantial tax base, provide a necessary service no1 already
provided in the community or redevelop a blighted area.
D, OTHER FACTORS TO BE CONSIDERED
The Coumy may consider the following factors when considering .m applicauon for a
business subsidy:
I. \Vage and Job Goals: IL is the County's policy 10 t:irget its business subsidy
assistance to businesses that demonstrate a clear and ongoing commitment to the
community by providing livable wage jobs to their employees. Nevenheless, not
all projects assisted wi1h subsidies derive their public purpose and impon.ance
solely by virtue of job creation. ln addition, the imposition ofh1ghjob creation
requirements and high wage level requirements may be unrealistic and counter-
productive in the face of larger economic forces or the financial and competiti\'e
circumstances of an ind1v1dual business. Ln determining the requirements for a
proJeCt under consideration for a business subsidy. the detennmation of the
2
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment B, Page 3
number of jobs to be created and the wage levels therefore will be guided by the
following principles and criteria:
a. The evaluation of projects will take into consideration the project's
importance in and benefits co the County from all perspectives, including
created or retained Jobs.
b. Wage and job goals may be set after consideration of the following
factors· (i) prevailing wage rates: (ii) local economic conditions, (i1iJ
external economic forces O\'er which neither the County nor the recipient
of the subsidy has control; (iv) lhe financial resources of the recipient: and
(v) the competiti,·e environment in which the recipient's business exists.
c. If the public purpose lo be furthered by the business subsidy rel;;:ites
primanly to purposes other than the creation or relention of employment
opportunities, then job and wage goals shall be a minor considera1ion in
lhe granung of the business subsidy, Notwithstanding th.: amount of
busmess subsidy. none or only a nominal number of jobs may be required
ifrhe Board of Commissioners finds that the business subsidy will sen•e a
substantial public purpose other than the creation or retention of
employment opportunities.
d. If a particular projcrt does not involve the creation of jobs. but is
nonetheless found to be worthy of support and subsidy, assistance may be
approved without any sped fie job or wage goals lf permitted by applicable
law.
2 Growth Poteolial. Based on recipient's m:uicet studies and plans for expansion,
the County may consider whether and to what e,clent the project is expected to be
e,cpanded to produce a net increase of full-time equivalent jobs beyond those
required in the wage and job goals established by the County.
3. Bur For Test. There is a substantial likelihood that the project would not go
forward without Lhc business subsidy. This criterion may be met based solely on
representations oflhe recipient oflhe business subsidy.
4. Tax Base. The project will increase or presen-e the tax base. (The Act requires
that a project must provide at least one other public benefil.)
5. Public: facilities. The project will provide or help acquire or construct public
fac1htic:s.
6. Redevelopment. The project will help develop or renew blighted areas
7. Services. The project will help provide access to services for residents of the
County.
S Retain Business. The project will retain a business that is at risk of relocating.
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OTC Board of Commissioners' Minutes
June 13, 2006
Attachment B, Page 4
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9, Impact on Surrounding Areai5. The impact of the proJeCt on surrounding areas
will be taken into consideration. lmpacls include but are not limited to: the extent
to which the subsidy may create competitive disadvantage, pollution, traffic,
sewer and water, parks and need for additional law enforcement or other
governmental services.
10. lltillz::itioo of Existing Infrastructure lnn!tmeot. Consider the extent 10
which the project will utilize e:<is11ng public infrastructure capacity or will r~quire
addu1onal publicly funded infrastructure investments.
11. Leveraging of Public Funds. Consider the extent to which public funds are
leveraged in the project.
12 Spin Off Development. The dollar amount of non-subsidized developmenl the
project is e.xpectc:d to generate in the surrounding area and the need for and
likelihood of such spin off development.
13. Community Servicts. Whether the project will enhance services in the County
and the need for such services For example, the project may enhance health
services, retail conveniCTice services, such as a nearby grocery store, or
transpor1ation or social services needed in the County.
14. Natural Environmeot. Whether the project will add to or detract from the
environment.
15. Other Factors. Depending on the nature of the project, such other factors as the
County may deem relevanl in e\·aluating the project and the business subsidy
proposed for 1t.
E. DEVIATION FROM CRITERIA
Meeting all policy criteria does not guarantee approval of the requested business subsidy.
The County maintains its ability lo appro\"e or deny the request at its discretion. In the
unlikely event that the County chooses to deviate from the criteria rather than denymg an
application for a business subsidy, the Coun1y must document in writing the reason for
the deviation as required by Minn. Stat. 1 l6J.994, subcl.. 2.
F, ADDITIONAL CONSIDERATIONS
I. The County may consider the requirements of any 01her busmess subsidy
received, or to be received. froni a granter other than the County.
2. Ifthc: business subsidy is real or personal property, the amount oithe subsidy will
be the fair market value of the propeny as determmcd by 1he County.
OTC Board of Commissioners' Minutes
June 13, 2006
Attachment B, Page 5
3. If the business subsidy is recei .... ed over time, the County may value lhe subsidy at
ns present value using a discount rate equal to an interest rate which the County
de1erm1n,:s is F:m and reasonable under the cirtumstanci.:s.
G, FINANCIAL ASSISTANCE NOT CONSIDERED A BUSINESS SUBSIDY
The following forms of .financial assislance are not a business subsidy as per Minn. Stal.
I 16J,993, subd. 3·.
I. A business subsidy of less than $25.000;
2. Assistance that is generally av;:ulable to all businesses or to a general class of
similar businesses, such as a line of business, size, location or sirnliar general
criteria;
3. Public improvements co buildings or lands owned by che state or local gov·emment
that serve a public purpose and do nol principally benefit a single business or
delinc-d group of businesses at the time the improvemencs are made;
4. Redevelopm~nt property polluted by contaminants as defined in Minn. Stal
116J.552, subdivision 3;
5. Assistance provided for the sole purpose of renovating old or decaying building
stock or bnnging it up to code, and assistance provided for designated h1s1onc
preservation districts, provided that the :iss1s1ance is equal lo or less than 51)
percent of the total cost~
6. Assistance to provide job readiness and training services if the sole purpose orthe-
assistance is to provide those services;
7. Assistance for housing:
8. Assistance for polluuon control or abatemen1, including assistance for a 1a,
incre-ment financing hazardous substance subdistrict as defined under Minn Stat.
469.174, subd 23;
9. Assis1ance for energy conserva1ion;
I 0. Ta.'< reductions resulting from confonnily with federal ta, law;
I I Workers' compensalion and unemployment compensation;
12. Benefits derived from regula11on;
lJ. Indirect benefits derived from assislance to educational institutions;
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OTC Board of Commissioners' Minutes
June 13, 2006
Attachment B, Page 6
14. Funds from bonds allocaled under Minn. Stat. Chapter474A, bonds issued le
refund outsianding bonds and bonds issued for the benefit ofan organization
described in section 50 l(c)(J) of the Internal Re\·enue Code of 1986, a.s amended;
15. Assistance for a collaboration between a Minnesota higher education institution
and a business,
16. Assistmce for a tax increment financing soils condition distric1 as defined under
Minn. Stat. 469.174, subd. 19;
17. Redevelopment when the recipient's investment in the purchase of the site and 1t1
site preparation is 70 percent or more of the :issessor's current year's est1ma1ed
market value;
J 8. General changes rn tax increment financing law and other general tnx law changes
of a principally technical netu.n:~
19. Federal assistance until the assis1.:ince has been repaid to and reim•ested by the
state or local govcmmenl agency;
20. Funds from dock and wharf bonds issued by a seaway port authority,
21. Business loans and loan guarantees of$75,000 or less; and
~2. Federal loan funds provided through lhe United States Oepa11mentofCommerce,
Economic Development Administr:ition.
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