Minnesota Business Subsidy Law

Minnesota Statute Sections 116J.993-.995 and Saint Paul City Council Resolution #99-742 require that a business receiving state or local government assistance must have a defined public purpose and recipients must set goals for job creation, wages, and benefits to be achieved within two years of receiving assistance.

Wage and Job Goals and Reporting

This applies to recipients* receiving a business subsidy of $150,000 or more of grant funds, and loans and loan guarantees over $150,000; unless the project or recipient falls within an exemption.

A notice and a public hearing on the subsidy is required.

Specific wage and job goals to be attained within 2 years and a 5-year commitment to continue operations at its business location in Saint Paul.

Annual reporting is required by March 1 of each year for the prior calendar year.

*All for-profit entities and only nonprofit entities with at least 100 FTE and with a ratio of highest to lowest paid employee that exceeds ten to one qualify as a business subsidy recipient.

Minnesota Business Subsidy Common Project Exemptions*

  • Redevelopment property polluted by contaminants as defined in section 116J.552, Subd 3
  • Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code, and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50 percent of the total cost
  • Assistance for housing
  • Assistance for pollution control or abatement including assistance for a tax increment financing hazardous substance subdistrict as defined under section 469.174, subdivision 23
  • Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value

**This is not a complete list, consult MN Statutes 116J.993, Subd. 3 for the complete list

Minnesota Business Subsidy Reporting Only

Annual reporting may be required of a business subsidy, if the assistance is in the form of a grant of $25,000 or more; or a loan of $75,000 or more, or a combination, when total assistance is less than $150,000, including all forms of City and HRA funding for a project.

Last Edited: May 8, 2024