EDA holds first reading of draft business incentive policy for Lindstrom

Dan introduced the EDA's first reading of a draft business incentive policy intended to provide clear criteria for development subsidies in Lindstrom. "Before you tonight is the 1st reading of the draft, business incentive policy, for the city of Lindstrom," he said, framing the document as a set of guardrails for incentives that could reach into the hundreds of thousands of dollars for a single project.

The draft lists nine objectives — including removing blight, retaining and creating quality jobs, expanding the tax base, and supporting small businesses — and requires a proposed project to meet at least two objectives to be considered. Dan emphasized the policy is not an entitlement: meeting criteria does not guarantee an incentive and the EDA and council retain discretion. He explained the review process will include staff analysis and third‑party public financing advisors to vet eligible costs and feasibility.

The proposal lays out financing principles for TIF and abatements, including a pay‑as‑you‑go approach rather than upfront bond proceeds, and a look‑back provision to recover incentives if a project's performance substantially exceeds its pro forma. Dan said the policy also allows fee waivers in limited cases but reserves SAC and WAC fees for infrastructure costs.

Next steps: Dan said he will send the draft to legal and to the city's financing advisers for review and that the EDA will make a recommendation to the city council; a public hearing and council decision will follow. He projected returning with draft materials in early 2025 for formal action.