Lindstrom EDA begins update of city business-subsidy policy, schedules TIF primer and facade program

Dan introduced a multistep effort to update Lindstrom's business subsidy and incentive policy, telling the Economic Development Authority that state statute requires a policy and the city's existing policy is about 10'12 years old. "First and foremost, for the city to give subsidies, a policy is required by state statute," Dan said at the meeting.

He described the planned schedule: an introductory TIF primer and distribution of the existing policy in August, a draft incentive and façade policy in September for EDA review, one or two meetings to refine wage and eligibility standards, a public hearing on the subsidy and a likely adoption target in the first quarter of 2025. Dan said wage-creation calculations typically produce the most debate and recommended indexing wage thresholds (for example to minimum-wage measures) so the rules do not age into irrelevance.

Dan summarized common incentive tools the city will consider updating in policy language: tax increment financing (TIF) and tax abatements as the highest-dollar options, forgivable or low-interest façade loans and other smaller incentive forms such as land write-downs or discounted city-owned parcels. He noted the practical value of clear guidelines: "If project A comes in, we're not playing favorites," he said, indicating the policy will set objective criteria such as job counts and wage floors to qualify projects.

EDA members asked how façade incentives would connect to the downtown architectural standards the planning commission and design committee are drafting. Dan said the façade program will be designed to tie to that palette: projects that meet the new material and frontage standards would be prioritized for incentive funding. He also confirmed exterior, public-facing improvements (signage, windows, siding) have typically been the focus of façade programs and permitting requirements would apply.

When asked about legal compliance, Dan said drafts will be submitted to the city attorney for review before approval to ensure the policy does not run afoul of state statute. He described this as standard practice and said the legal review will occur once the draft is "three-quarter baked." Dan also flagged a possible funding constraint: an $80,000 county payment could reduce available EDA funds for incentives if the county requires a large balloon payment; he said he will seek clarification from county EDA staff in August.

The EDA did not take a vote on policy content at the meeting; Dan said the objective is to develop draft materials for upcoming EDA meetings and to use targeted primer sessions (including a TIF overview) to get members up to speed before deeper review and public hearings. The next procedural steps are distribution of the existing policy and several model policies before the August meeting and a focused TIF primer at that session.

The EDA will continue discussing the draft policy at subsequent meetings, with legal review and public hearing steps required before final council approval.