97-1242Council File # {� �,Zy�+
Green Sheet # �s0 �oZ,Q
RESOLUTION
CITY OF
2
0
6
7
Presented sy
Referred To
Committee: Date
RESOLUTION ACKNOWLEDGING RECEIPT OF AND ACCEPTING A REPORT
FROM THE DEPARTMENT OF PLANNING AND ECONONIIC DEVELOPMENT
ON THE IMPLEMENTATION OF THE LIVING WAGE POLICY
a�
WHEREAS, on Januaty 2, 1997, the City Council passed resolufion 96-1512 Accepting and Adopting
the Policy Recommendations ofthe Joint Saint Paul-Minneapolis Living Wage Policy Task Force; and
8 WHEREAS, the Department of Plauning and Economic Development was designated to develop
9 administrative guidelines for the implementation of ttus policy; and
10
11 WHEREAS, the Department of Planning and Economic Development returned to the Council on
12 Februaz•y 5, 1997 with both Short-term Administrative Guidelines that could be implemented by March I S
13 and Long-Term Guidelines that would require more work prior to implementation; and
14
15 WHEREAS, City Council reviewed and accepted those Guidelines; and
16
17 WHEREAS, the Deparlment of Planning and Economic Development was also designated to monitor
18 and report on compliance with these Administrative Guidelines now, therefore be it
19 � �
20 RESOLVED, that the Saint Paul City Council acknowledges receipt of and accepts this report from the
21 Department of Planning and Economic Development on the implementation to date of the Living Wage
22 policy for the City of Saint Pau1.
?3
?4
Requested by Department of:
By:
Form Approved by City Attorney
Adoption Certified by Council Secretary
By:
Approved by Mayor: Date ! c�l ( i. �_jc�
�c //1
Hy: //
PAUL, MINNESOTA
By:
Apprwed by Mayor £or Submission to Council
By:
GREEN SHEET
Councilmember
�$S�GN
NUYBER f-0R
TOTAL # OF SIGNATURE PAGES
Acknowledging receipt of & accepting a report from the Department of Planning and Economic
Development on the implementation of the living wage policy.
vun� ��n approve �a� w rce�ecc �
PLANNING COMMISSION
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r,o 60728
)TAL AMOUNT OF TRANSAC710N S
COST/REYEfiUE BlfD6ETED (CI0.CLE ONE�
�L�:L•:
N1DIN6 SOURCE
ACT1VIiY fiUMBER
ANCl4L INFOIiM42iON (DlPWN)
9� - f�.y�-
REPORT TO SAINT PAUL CITY COUNCIL
ON
IMPLEMENTATION OF LIVING WAGE RESOLUTION 96-1512
On January 2, 1497 Ciry Councii passed Resolution 46-1512 establishing a Living Wage Policy
for any Economic Development project receiving over $100,000 (cumulative in any one fiscal
year) in City assistance in which jobs aze created or retained. City Assistance was broadly
defined as loans, bonds, grants, and City t� incentives. The Department of Planning and
Economic Development was charged with implementing this resolution and reporting to City
Council on the outcomes.
In March, 1997 PED staff presented the Administrative Guidelines for implementation of the
program. These were divided into Short Term (immediately doable) and Long Term (requiring
more coordination and planning). [Copy is attached as Ea�hibit A] These Guidelines were
accepted by City Council. PED staff was to return to City Council with the Long Term
Guidelines in the suimner.
SAORT TERM IMPLEMENTATION
� Training session were held for PED Account Officers and subgrantees in March on the
Living Wage requirements and reporting.
�> Inforniation on Living Wage requirements is included in each Compliance meeting that is
held for subgrantees receiving STAR loan or grant money.
� Information sheets were prepazed for PED Account Officers to have as a ready reference
when they are working with businesses applying for City funding. [E�chibit B]
� PED staff is also prepazing a brochure that can be given to businesses to explain the
Living Wage requirements.
� Account Officers were informed when the Federal Poverty Guidelines were updated with
1997 figures. Hourly wages required without health benefits aze now $8.49. Hourly
wages required if health benefits are given employees are $7.72. Staff has located the
information on the Internet so that updating of required hourly wages can be done as soon
as the Federal Poverry Guidelines are posted by the U.S. Department of Health & Human
Services.
� Schedule of businesses subject to living wage requirements is shown in the table on the
next page. Projects aze added to the table when they go through PED Credit Committee
to finalize the financing.
a� � 1 zy �
LIViNG WAGE REPORT TO SAfNT PAUL C1TY COUNCIL
Name i$ Amount � Date of Job Creafion Anticipated Hourly Wages
� I Assistance FT PT
Inc
1997
$16.85
261 E Sth
not
not
School � $7�� � not closed 10(YR 1
Mazket � $740,220.00 nat close 55 $6-15
;s Familv Care Ctr*** I $100_000.00� not close 0 OT
LONG TERM IMPLEMENTATION
� Job Linkage --The City has become an active partner in the Ramsey County Community
Parmership for Welfare Reform, which is working to develop a centralized system to
allow employers to list their job openings . PED staff are warking with the Partnership
because it has broadened its approach from welfare-to-work, to the more important
economic development challenge of linking job seekers with jobs. The Partnership has
also succeeded in engaging the business community over the issue of workforce
development. Short-term, a single telephone number will be up and rutuiing this fall at the
Saint Paul Workforce Center, using the NeighborLink electronic job listing system. Long-
term, efforts aze underway to create a Community Employment System with two
components: a centralized workforce center for employers, and decentralized Work
Resource Hubs for job seekers. Link'no the two will be integrated electronic information
systems and staff skilled in serving business and job seeker customers. The first couple of
Work Resource Hubs aze expected to open this January.
� Businesses with Living Wage Jobs -- People take the work readiness skills they learn at
entry Ievel jobs and advance to better jobs. For low-income residents seeking to enter the
work force, finding a job with a good "job ladder" -- one with room to advance -- is better
than starting at a living wage in a job with no oppornuiity for advancement. In Saint
Paul, two globaily-competitive industry clusters stand out both for the number of entry-
level jobs they create, and the number of jobs that exist for those who want to develop
their sldlls and move up the ladder.
9�-��,y�
Between them, the printing and health caze industries have hundreds of emry level jobs
available, and many other jobs with good cazeer ladders. The printing industry, Uuough
the Printing Industry ofMinnesota trade association, has developed its own job traiuing
pmgraru and is reaching out to find and develop qualified candidates from non-traditional
populations. The Health Care industry, through the Hospitat and Health Care
Partnership, is exploring the creation of a pilot program with the City and the Port
Authority to develop a customized training program not only for the 500 entry-level jobs
they estimate aze available today, but trainiaig programs that will move existing entry-
level workers up the job ladder.
� Child Care — The City has been involved in increasing the supply of child care primarily
by financing improvements through PED's home rehab finance programs. In response to
welfare reform, the State has guaranteed fuli funding for welfaze-to-work child care, and
the Ramsey Counry Community Partnership for Welfare Reform, with a grant from the
McKnight Foundation, is developing a three-pronged strategy for delivering on this
guarantee. The first strategy is to develop the capacity of existing child-caze providers to
provide more child care and evening child care (the area where our e�sting prograans will
be most effective). The second strategy is to streamline the reimbursement process so that
providers can get paid more quickly (not an area where we are involved). And the third
strategy is to develop a network of neighbarhood-based child-caze providers to provide
them with information and support (an area where we will probably be involved as part of
the neighborhood-based Work Resource Hubs that aze being developed).
s� Transportation -- The State has provided Ramsey County with funding (estimated at
$640,000 for two yeazs) for welfare-to-work transportation. A task force of the Ramsey
County Community Partnership for Welfare Reform has developed a process for
soliciting and awarding welfare-to-work transportation grants by the end of this year. The
Ciry has been involved through staff attending task force meetings and by encouraging
the Saint Paul Red Cross, probably the lazgest non-profit transportation provider in the
Twin Cities, to submit a grant application.
� Cooperation with other governmental entifies -- Duluth and Minneapolis haue passed
Living Wage Resolutions within the past yeaz. The City of Vadnais Heights has
insfituted a policy that a criteria far assistance given through TIF financing will be the
ability of the business to provide "quality jobs." PED staff has also talked with city staff
in Chicago and Los Angeles and at the National League of Cities about living wage
proposals.
� Responsible labor relations -- This is not PED's azea of speciality. However, where
there are good labor relations in a company, it usually translates into a better project.
That situation is considered a plus when a company applies for public assistance.
9� � t a.y �—
Eghibit A
City/I�2A Living Wage Jobs Policy
Administrative Guidelines
Implementation Highliglits - Short Term (See Living Wage Jobs Task Force Policy
Recommandations attached)
PED wi11 create a facdinformation sheet regarding the Living Wage Jobs Policy and PED
account officers will provide businesses that are seeking public financing with these
requirements.
2. Job creation goals will be defined for each project (in conjunction with state corporate
welfare legislation) and will become part of the contracUloan agreement for each project.
60% of new hires will be required to be Saint Paul residents.
3. Any business receiving pubiic fmancing assistance from the CityBRA for the purpose of
economic development in which jobs are created or retained, will be required to remit a
copy of its Quarterly Wage Detail Report on an annual basis as a function of
servicinglmonitoring by PED account officers. The State requires businesses to file this
report following each calendu quarter to report unemployment insurance. The Quarterly
Wage Detail Report consists of an employee roster, weeks worked and wages earned
during the quarter. Currently, I3RA uses this format to verify employment levels and
satisfy reporting requirements for the Strategic Investment Fund loan program. In
addition to a copy of the report, businesses must provide an affida�it certifying any new
hires and whether they reside in the city of Saint Paul.
4. The Public Pwpose form, adopted by Council, with addition of a check-off to report
businesses subject to the Living Wage Jobs Policy (as defined by City Council
Resolution adopted U2J97), will be used as a controi mechanism for monitoring and
reporting. See attached draft. Monitoring will be done by PED account officers and
reported by compliance staff to City Council annually on April 1(in conjunction with
report requirements for corporate welfaze).
5. Any business unable to pay the living wage must provide a detailed explanation to PED,
which, upon review, may tecommend to the City CounciUHRA a waiver to ttris
requirement. This waiver may be granted by resolution. Businesses requesring waivers
may choose to request a waiver upon initial applicafion review, at time of HRA/Council
approval, ar any time after receiving financing if the business finds it is unable to meet
established requirements.
6. Language will be added to contracdloan agreement documents for businesses subject to
the Living Wage Jobs Policy to provide that failure to comply will result in a default.
Options to remedy (sanctions) the default include:
A. Accelerate loan (demand note) �'� '� a ' y �
B. Increase interest rate to mazket rate
PED is prepared to nnplement the Laving Wage 7obs Policy by Mazch 15, 1997, for business that
have made inirial contact about PED programs and support after January 2, 1997. PED will
identify those businesses as we seek approval from the I�Rt-1 Boazd.
DRAFT
Impiementation Highlights - Outstanding Long Term Issues (See Livina Wage 3obs Task Force
Policy Recommendations attached)
More fully develop a process to advertise jobs created to the entire communiry includ'uag
low-income people through community-sponsored arganizafions or job linkage progra.tns.
Utilization of the NeighborLink Enterprise Community Project will be used as a focus
point for the advertising of all new jobs that are created via city economac development
projects.
8. More fully define and develop a process to focus job creation and retanfion at businesses
which provide living wage jobs to its employees by giving priority over businesses which
have not traditionally paid living wages.
More cleazly define "tesponsible labor relafions" and preferential status for assistance to
businesses that engage in responsible labor relations.
10. The City of Saint Paul Intergovernmental Relations staff will work with the
Metropolitan Council and other appropriate state and regional agencies and the legislature
to promote standazds consistent with these guidelines for job creation and retenfion
assistance by public development agencies throughout the region.
11. Trained and work-ready empioyees and facilitation of access to child care and public
transportation should be addressed by building on the existing system and within the
development of a comprehensive job readiness program. A proposal will be developed by
PED's Workfarce Development Division.
PED will draft a proposal addressing implementation of these outstanding long term issues of the
Living Wage Jobs Policy by June 10, 1997.
EXI�BIT B
CITY OF SAINT PAUL
LIVING WAGE REGULATIONS
�� -1 a�t �-
On January 2, 1497 City Council passed Resolution 46-1512 establishing a Living Wage Policy for any
Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City
assistance in which jobs are created or retained. City Assistance was broadly defined as loans, bonds,
grants,and Citytax incentives.
The Resolu6on excluded from these requirements the following:
1. Conduit bonds.
2. Small businesses as defined in MN Statute 645.445.
3. Intermediaries, such as a community development corporation or community bank, which serves
as a pass-through agency for the granting of assistance.
4. Business in its first year of existence. {However, regulation will go into effect with the second
year of existence.
5. Redevelopment projects whose only public assistance is site remediation, investigation, site
assembly_
REQUIREMENTS:
1. Living wage is defined as ll 0% of the Federal poveriy guidelines far a family of four ($8.49 for
199?). If the business provides employer-paid basic health insurance coverage, living wage is
defined as 100% of the of the Federal poveriy guidelines for a family of four ($7.72 for 1997).
2. Any business unable to pay the living wage must provide a detailed explanafion to PED, which,
upon review, may recommend to the City CounciUHRA a waiver to this requirement. This
waiver may be granted by resolution. Businesses requesting waivers may choose to request a
waiver upon initial application review, at time of HRA/Council approval, or any time after
receiving financing if the business finds it is unable to meet established requirements.
3. Job creation goals will be defined for each project (in conjunction with state corporate welfare
legislation) and will become part of the contract/loan agreement for each project. 60% of new
hires will be required to be Saint Paul residents.
4. Language will be added to contract/loan agreement documents for businesses subject to the
Living Wage 7obs Policy to provide that failure to comply wilt resutt in a default. Options to
remedy (sanctions) the default include:
A. Accelerate loan (demand note) B. Increase interest rate to market rate
5. Any business receiving pubiic financing assistance will be required to remit a copy of its
Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED
account officers. The State requires businesses to file this report following each calendar quarter
to report unemplopment insurance. The Quarterly Wage Detait Report consists of an employee
roster, weeks worked and wages eamed during the quarter. In addition to a copy of the report,
businesses must provide an affidavit certifying any new hires and whether they reside in the city
of SainY Paul. amcvwre sePremner i99�
q�-1a.��
EXHIBIT B continued
Account Officer Guide
Living Wage/Corporate Welfare Process
Assistance includes loans, grants, City tax incenrives, bonds (except conduit bonds are e%cluded).
Step 1. Apply this matria to the project to determine if eitherlboth Corporate
Welfare and Living Wage regulations apply:
Criteria Corporate Welfare Living Wage applies
applies
Assistance is for economic devel'mt in �Y XXX
which jobs are created or retained
Assistance is more than $25,000 but less X�'Y DOES NOT APPLY
than $100,00Q in one fiscal year
Assistance is more than $100,000 XXX XXX
[cumulat3ve in any one fiscal year]
Assistance is for site remedia6on, DOES NOT APPLY DOES NOT APPLY
investigation & assembly
Assistance is for small business as defined � DOES NOT APPLY
by MN Statute 645.445, e.g.
20 or fewer employees;
Less than $1,000,000 gross revenues in
preceding fiscai year; ar
Less than $2,500,000 if a technical or pro-
fessional service;
Is not an�liate or subsidiary of a
business dominant in its field of operation.
Recipient serves as a pass-through agency DOES NOT APPLY DOES NOT APPLY
for assistance such as CDC, bank, etc.
Recipient is a business in its first year of XXX DOES NOT APPLY for
existence first yeaz but does apply
beginning with second
year
Recipient is a not-for-profit DOES NOT APPLY �'YX
GO TO STEP 2 -i
q�.��� �-
Step 2. Compliance and Reporting Requirements
Work with the recipient of the public financing to detennine:
A. what are realistic job goals and wages for this entity to meet?
• Sanc6ons will apply if goals are not met within two yeazs of receiving public assistance.
• These requirements will be part of the contract/loan agreement.
• 60% of new hires must be St Paul residents.
B.. Fill out a Public Purpose Sumuiary.
• Check if Corporate Welfaze andlor Living Wage applies.
• Indicate Job Creation and Wage goals as well as number of jobs retained.
C. Include in the HRA/Credit Committee report the average wage the business currently pays its
employees
D. If assistance is approved by the IIRAICredit Committee, fill out a Corporate Welfare form if it
applies and forward to Ann Copeland.
E. Be sure proper language regarding Corporate Welfaze/Living Wage compliance and reporting is
included in the financing agreement.
F. Collect an initial Quarterly Wage Detail Report from the business.
G. Annually, as part of the loan/grant servicing, coilect a Quarterly Wage Detail Report and a letter
certifying iffhow job creation and wage goals have been met.
Council File # {� �,Zy�+
Green Sheet # �s0 �oZ,Q
RESOLUTION
CITY OF
2
0
6
7
Presented sy
Referred To
Committee: Date
RESOLUTION ACKNOWLEDGING RECEIPT OF AND ACCEPTING A REPORT
FROM THE DEPARTMENT OF PLANNING AND ECONONIIC DEVELOPMENT
ON THE IMPLEMENTATION OF THE LIVING WAGE POLICY
a�
WHEREAS, on Januaty 2, 1997, the City Council passed resolufion 96-1512 Accepting and Adopting
the Policy Recommendations ofthe Joint Saint Paul-Minneapolis Living Wage Policy Task Force; and
8 WHEREAS, the Department of Plauning and Economic Development was designated to develop
9 administrative guidelines for the implementation of ttus policy; and
10
11 WHEREAS, the Department of Planning and Economic Development returned to the Council on
12 Februaz•y 5, 1997 with both Short-term Administrative Guidelines that could be implemented by March I S
13 and Long-Term Guidelines that would require more work prior to implementation; and
14
15 WHEREAS, City Council reviewed and accepted those Guidelines; and
16
17 WHEREAS, the Deparlment of Planning and Economic Development was also designated to monitor
18 and report on compliance with these Administrative Guidelines now, therefore be it
19 � �
20 RESOLVED, that the Saint Paul City Council acknowledges receipt of and accepts this report from the
21 Department of Planning and Economic Development on the implementation to date of the Living Wage
22 policy for the City of Saint Pau1.
?3
?4
Requested by Department of:
By:
Form Approved by City Attorney
Adoption Certified by Council Secretary
By:
Approved by Mayor: Date ! c�l ( i. �_jc�
�c //1
Hy: //
PAUL, MINNESOTA
By:
Apprwed by Mayor £or Submission to Council
By:
GREEN SHEET
Councilmember
�$S�GN
NUYBER f-0R
TOTAL # OF SIGNATURE PAGES
Acknowledging receipt of & accepting a report from the Department of Planning and Economic
Development on the implementation of the living wage policy.
vun� ��n approve �a� w rce�ecc �
PLANNING COMMISSION
CIB CAMMITTEE
CiVIL SERVICE COMMISSfON
u��� u��-
❑ pfYAT�ORNkY ❑ CRYCLiMIt
❑ RNMqRliF0.VICEfOYI ❑ RMNCMLfE0.Yf�CCT6
❑wvort�on�smr�nn ❑
(CUP ALL LOCATIONS FOR SIGNATURE)
Hastl»a PeBOM�m eder waketl urMer a contract for tltis department4
VES NO
Has ihis PeraoNfirtn avM Eeen a citY emPbYee9
YES NO
Dcesihie Personlfi�m 0� a slfili not nqrtwlryP� M' �N �urrerrt cilY �PbY�
YES td0
IsttHapeisot�nnatargetedvendoYt .
YES NO
�t? -��.ya-
r,o 60728
)TAL AMOUNT OF TRANSAC710N S
COST/REYEfiUE BlfD6ETED (CI0.CLE ONE�
�L�:L•:
N1DIN6 SOURCE
ACT1VIiY fiUMBER
ANCl4L INFOIiM42iON (DlPWN)
9� - f�.y�-
REPORT TO SAINT PAUL CITY COUNCIL
ON
IMPLEMENTATION OF LIVING WAGE RESOLUTION 96-1512
On January 2, 1497 Ciry Councii passed Resolution 46-1512 establishing a Living Wage Policy
for any Economic Development project receiving over $100,000 (cumulative in any one fiscal
year) in City assistance in which jobs aze created or retained. City Assistance was broadly
defined as loans, bonds, grants, and City t� incentives. The Department of Planning and
Economic Development was charged with implementing this resolution and reporting to City
Council on the outcomes.
In March, 1997 PED staff presented the Administrative Guidelines for implementation of the
program. These were divided into Short Term (immediately doable) and Long Term (requiring
more coordination and planning). [Copy is attached as Ea�hibit A] These Guidelines were
accepted by City Council. PED staff was to return to City Council with the Long Term
Guidelines in the suimner.
SAORT TERM IMPLEMENTATION
� Training session were held for PED Account Officers and subgrantees in March on the
Living Wage requirements and reporting.
�> Inforniation on Living Wage requirements is included in each Compliance meeting that is
held for subgrantees receiving STAR loan or grant money.
� Information sheets were prepazed for PED Account Officers to have as a ready reference
when they are working with businesses applying for City funding. [E�chibit B]
� PED staff is also prepazing a brochure that can be given to businesses to explain the
Living Wage requirements.
� Account Officers were informed when the Federal Poverty Guidelines were updated with
1997 figures. Hourly wages required without health benefits aze now $8.49. Hourly
wages required if health benefits are given employees are $7.72. Staff has located the
information on the Internet so that updating of required hourly wages can be done as soon
as the Federal Poverry Guidelines are posted by the U.S. Department of Health & Human
Services.
� Schedule of businesses subject to living wage requirements is shown in the table on the
next page. Projects aze added to the table when they go through PED Credit Committee
to finalize the financing.
a� � 1 zy �
LIViNG WAGE REPORT TO SAfNT PAUL C1TY COUNCIL
Name i$ Amount � Date of Job Creafion Anticipated Hourly Wages
� I Assistance FT PT
Inc
1997
$16.85
261 E Sth
not
not
School � $7�� � not closed 10(YR 1
Mazket � $740,220.00 nat close 55 $6-15
;s Familv Care Ctr*** I $100_000.00� not close 0 OT
LONG TERM IMPLEMENTATION
� Job Linkage --The City has become an active partner in the Ramsey County Community
Parmership for Welfare Reform, which is working to develop a centralized system to
allow employers to list their job openings . PED staff are warking with the Partnership
because it has broadened its approach from welfare-to-work, to the more important
economic development challenge of linking job seekers with jobs. The Partnership has
also succeeded in engaging the business community over the issue of workforce
development. Short-term, a single telephone number will be up and rutuiing this fall at the
Saint Paul Workforce Center, using the NeighborLink electronic job listing system. Long-
term, efforts aze underway to create a Community Employment System with two
components: a centralized workforce center for employers, and decentralized Work
Resource Hubs for job seekers. Link'no the two will be integrated electronic information
systems and staff skilled in serving business and job seeker customers. The first couple of
Work Resource Hubs aze expected to open this January.
� Businesses with Living Wage Jobs -- People take the work readiness skills they learn at
entry Ievel jobs and advance to better jobs. For low-income residents seeking to enter the
work force, finding a job with a good "job ladder" -- one with room to advance -- is better
than starting at a living wage in a job with no oppornuiity for advancement. In Saint
Paul, two globaily-competitive industry clusters stand out both for the number of entry-
level jobs they create, and the number of jobs that exist for those who want to develop
their sldlls and move up the ladder.
9�-��,y�
Between them, the printing and health caze industries have hundreds of emry level jobs
available, and many other jobs with good cazeer ladders. The printing industry, Uuough
the Printing Industry ofMinnesota trade association, has developed its own job traiuing
pmgraru and is reaching out to find and develop qualified candidates from non-traditional
populations. The Health Care industry, through the Hospitat and Health Care
Partnership, is exploring the creation of a pilot program with the City and the Port
Authority to develop a customized training program not only for the 500 entry-level jobs
they estimate aze available today, but trainiaig programs that will move existing entry-
level workers up the job ladder.
� Child Care — The City has been involved in increasing the supply of child care primarily
by financing improvements through PED's home rehab finance programs. In response to
welfare reform, the State has guaranteed fuli funding for welfaze-to-work child care, and
the Ramsey Counry Community Partnership for Welfare Reform, with a grant from the
McKnight Foundation, is developing a three-pronged strategy for delivering on this
guarantee. The first strategy is to develop the capacity of existing child-caze providers to
provide more child care and evening child care (the area where our e�sting prograans will
be most effective). The second strategy is to streamline the reimbursement process so that
providers can get paid more quickly (not an area where we are involved). And the third
strategy is to develop a network of neighbarhood-based child-caze providers to provide
them with information and support (an area where we will probably be involved as part of
the neighborhood-based Work Resource Hubs that aze being developed).
s� Transportation -- The State has provided Ramsey County with funding (estimated at
$640,000 for two yeazs) for welfare-to-work transportation. A task force of the Ramsey
County Community Partnership for Welfare Reform has developed a process for
soliciting and awarding welfare-to-work transportation grants by the end of this year. The
Ciry has been involved through staff attending task force meetings and by encouraging
the Saint Paul Red Cross, probably the lazgest non-profit transportation provider in the
Twin Cities, to submit a grant application.
� Cooperation with other governmental entifies -- Duluth and Minneapolis haue passed
Living Wage Resolutions within the past yeaz. The City of Vadnais Heights has
insfituted a policy that a criteria far assistance given through TIF financing will be the
ability of the business to provide "quality jobs." PED staff has also talked with city staff
in Chicago and Los Angeles and at the National League of Cities about living wage
proposals.
� Responsible labor relations -- This is not PED's azea of speciality. However, where
there are good labor relations in a company, it usually translates into a better project.
That situation is considered a plus when a company applies for public assistance.
9� � t a.y �—
Eghibit A
City/I�2A Living Wage Jobs Policy
Administrative Guidelines
Implementation Highliglits - Short Term (See Living Wage Jobs Task Force Policy
Recommandations attached)
PED wi11 create a facdinformation sheet regarding the Living Wage Jobs Policy and PED
account officers will provide businesses that are seeking public financing with these
requirements.
2. Job creation goals will be defined for each project (in conjunction with state corporate
welfare legislation) and will become part of the contracUloan agreement for each project.
60% of new hires will be required to be Saint Paul residents.
3. Any business receiving pubiic fmancing assistance from the CityBRA for the purpose of
economic development in which jobs are created or retained, will be required to remit a
copy of its Quarterly Wage Detail Report on an annual basis as a function of
servicinglmonitoring by PED account officers. The State requires businesses to file this
report following each calendu quarter to report unemployment insurance. The Quarterly
Wage Detail Report consists of an employee roster, weeks worked and wages earned
during the quarter. Currently, I3RA uses this format to verify employment levels and
satisfy reporting requirements for the Strategic Investment Fund loan program. In
addition to a copy of the report, businesses must provide an affida�it certifying any new
hires and whether they reside in the city of Saint Paul.
4. The Public Pwpose form, adopted by Council, with addition of a check-off to report
businesses subject to the Living Wage Jobs Policy (as defined by City Council
Resolution adopted U2J97), will be used as a controi mechanism for monitoring and
reporting. See attached draft. Monitoring will be done by PED account officers and
reported by compliance staff to City Council annually on April 1(in conjunction with
report requirements for corporate welfaze).
5. Any business unable to pay the living wage must provide a detailed explanation to PED,
which, upon review, may tecommend to the City CounciUHRA a waiver to ttris
requirement. This waiver may be granted by resolution. Businesses requesring waivers
may choose to request a waiver upon initial applicafion review, at time of HRA/Council
approval, ar any time after receiving financing if the business finds it is unable to meet
established requirements.
6. Language will be added to contracdloan agreement documents for businesses subject to
the Living Wage Jobs Policy to provide that failure to comply will result in a default.
Options to remedy (sanctions) the default include:
A. Accelerate loan (demand note) �'� '� a ' y �
B. Increase interest rate to mazket rate
PED is prepared to nnplement the Laving Wage 7obs Policy by Mazch 15, 1997, for business that
have made inirial contact about PED programs and support after January 2, 1997. PED will
identify those businesses as we seek approval from the I�Rt-1 Boazd.
DRAFT
Impiementation Highlights - Outstanding Long Term Issues (See Livina Wage 3obs Task Force
Policy Recommendations attached)
More fully develop a process to advertise jobs created to the entire communiry includ'uag
low-income people through community-sponsored arganizafions or job linkage progra.tns.
Utilization of the NeighborLink Enterprise Community Project will be used as a focus
point for the advertising of all new jobs that are created via city economac development
projects.
8. More fully define and develop a process to focus job creation and retanfion at businesses
which provide living wage jobs to its employees by giving priority over businesses which
have not traditionally paid living wages.
More cleazly define "tesponsible labor relafions" and preferential status for assistance to
businesses that engage in responsible labor relations.
10. The City of Saint Paul Intergovernmental Relations staff will work with the
Metropolitan Council and other appropriate state and regional agencies and the legislature
to promote standazds consistent with these guidelines for job creation and retenfion
assistance by public development agencies throughout the region.
11. Trained and work-ready empioyees and facilitation of access to child care and public
transportation should be addressed by building on the existing system and within the
development of a comprehensive job readiness program. A proposal will be developed by
PED's Workfarce Development Division.
PED will draft a proposal addressing implementation of these outstanding long term issues of the
Living Wage Jobs Policy by June 10, 1997.
EXI�BIT B
CITY OF SAINT PAUL
LIVING WAGE REGULATIONS
�� -1 a�t �-
On January 2, 1497 City Council passed Resolution 46-1512 establishing a Living Wage Policy for any
Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City
assistance in which jobs are created or retained. City Assistance was broadly defined as loans, bonds,
grants,and Citytax incentives.
The Resolu6on excluded from these requirements the following:
1. Conduit bonds.
2. Small businesses as defined in MN Statute 645.445.
3. Intermediaries, such as a community development corporation or community bank, which serves
as a pass-through agency for the granting of assistance.
4. Business in its first year of existence. {However, regulation will go into effect with the second
year of existence.
5. Redevelopment projects whose only public assistance is site remediation, investigation, site
assembly_
REQUIREMENTS:
1. Living wage is defined as ll 0% of the Federal poveriy guidelines far a family of four ($8.49 for
199?). If the business provides employer-paid basic health insurance coverage, living wage is
defined as 100% of the of the Federal poveriy guidelines for a family of four ($7.72 for 1997).
2. Any business unable to pay the living wage must provide a detailed explanafion to PED, which,
upon review, may recommend to the City CounciUHRA a waiver to this requirement. This
waiver may be granted by resolution. Businesses requesting waivers may choose to request a
waiver upon initial application review, at time of HRA/Council approval, or any time after
receiving financing if the business finds it is unable to meet established requirements.
3. Job creation goals will be defined for each project (in conjunction with state corporate welfare
legislation) and will become part of the contract/loan agreement for each project. 60% of new
hires will be required to be Saint Paul residents.
4. Language will be added to contract/loan agreement documents for businesses subject to the
Living Wage 7obs Policy to provide that failure to comply wilt resutt in a default. Options to
remedy (sanctions) the default include:
A. Accelerate loan (demand note) B. Increase interest rate to market rate
5. Any business receiving pubiic financing assistance will be required to remit a copy of its
Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED
account officers. The State requires businesses to file this report following each calendar quarter
to report unemplopment insurance. The Quarterly Wage Detait Report consists of an employee
roster, weeks worked and wages eamed during the quarter. In addition to a copy of the report,
businesses must provide an affidavit certifying any new hires and whether they reside in the city
of SainY Paul. amcvwre sePremner i99�
q�-1a.��
EXHIBIT B continued
Account Officer Guide
Living Wage/Corporate Welfare Process
Assistance includes loans, grants, City tax incenrives, bonds (except conduit bonds are e%cluded).
Step 1. Apply this matria to the project to determine if eitherlboth Corporate
Welfare and Living Wage regulations apply:
Criteria Corporate Welfare Living Wage applies
applies
Assistance is for economic devel'mt in �Y XXX
which jobs are created or retained
Assistance is more than $25,000 but less X�'Y DOES NOT APPLY
than $100,00Q in one fiscal year
Assistance is more than $100,000 XXX XXX
[cumulat3ve in any one fiscal year]
Assistance is for site remedia6on, DOES NOT APPLY DOES NOT APPLY
investigation & assembly
Assistance is for small business as defined � DOES NOT APPLY
by MN Statute 645.445, e.g.
20 or fewer employees;
Less than $1,000,000 gross revenues in
preceding fiscai year; ar
Less than $2,500,000 if a technical or pro-
fessional service;
Is not an�liate or subsidiary of a
business dominant in its field of operation.
Recipient serves as a pass-through agency DOES NOT APPLY DOES NOT APPLY
for assistance such as CDC, bank, etc.
Recipient is a business in its first year of XXX DOES NOT APPLY for
existence first yeaz but does apply
beginning with second
year
Recipient is a not-for-profit DOES NOT APPLY �'YX
GO TO STEP 2 -i
q�.��� �-
Step 2. Compliance and Reporting Requirements
Work with the recipient of the public financing to detennine:
A. what are realistic job goals and wages for this entity to meet?
• Sanc6ons will apply if goals are not met within two yeazs of receiving public assistance.
• These requirements will be part of the contract/loan agreement.
• 60% of new hires must be St Paul residents.
B.. Fill out a Public Purpose Sumuiary.
• Check if Corporate Welfaze andlor Living Wage applies.
• Indicate Job Creation and Wage goals as well as number of jobs retained.
C. Include in the HRA/Credit Committee report the average wage the business currently pays its
employees
D. If assistance is approved by the IIRAICredit Committee, fill out a Corporate Welfare form if it
applies and forward to Ann Copeland.
E. Be sure proper language regarding Corporate Welfaze/Living Wage compliance and reporting is
included in the financing agreement.
F. Collect an initial Quarterly Wage Detail Report from the business.
G. Annually, as part of the loan/grant servicing, coilect a Quarterly Wage Detail Report and a letter
certifying iffhow job creation and wage goals have been met.
Council File # {� �,Zy�+
Green Sheet # �s0 �oZ,Q
RESOLUTION
CITY OF
2
0
6
7
Presented sy
Referred To
Committee: Date
RESOLUTION ACKNOWLEDGING RECEIPT OF AND ACCEPTING A REPORT
FROM THE DEPARTMENT OF PLANNING AND ECONONIIC DEVELOPMENT
ON THE IMPLEMENTATION OF THE LIVING WAGE POLICY
a�
WHEREAS, on Januaty 2, 1997, the City Council passed resolufion 96-1512 Accepting and Adopting
the Policy Recommendations ofthe Joint Saint Paul-Minneapolis Living Wage Policy Task Force; and
8 WHEREAS, the Department of Plauning and Economic Development was designated to develop
9 administrative guidelines for the implementation of ttus policy; and
10
11 WHEREAS, the Department of Planning and Economic Development returned to the Council on
12 Februaz•y 5, 1997 with both Short-term Administrative Guidelines that could be implemented by March I S
13 and Long-Term Guidelines that would require more work prior to implementation; and
14
15 WHEREAS, City Council reviewed and accepted those Guidelines; and
16
17 WHEREAS, the Deparlment of Planning and Economic Development was also designated to monitor
18 and report on compliance with these Administrative Guidelines now, therefore be it
19 � �
20 RESOLVED, that the Saint Paul City Council acknowledges receipt of and accepts this report from the
21 Department of Planning and Economic Development on the implementation to date of the Living Wage
22 policy for the City of Saint Pau1.
?3
?4
Requested by Department of:
By:
Form Approved by City Attorney
Adoption Certified by Council Secretary
By:
Approved by Mayor: Date ! c�l ( i. �_jc�
�c //1
Hy: //
PAUL, MINNESOTA
By:
Apprwed by Mayor £or Submission to Council
By:
GREEN SHEET
Councilmember
�$S�GN
NUYBER f-0R
TOTAL # OF SIGNATURE PAGES
Acknowledging receipt of & accepting a report from the Department of Planning and Economic
Development on the implementation of the living wage policy.
vun� ��n approve �a� w rce�ecc �
PLANNING COMMISSION
CIB CAMMITTEE
CiVIL SERVICE COMMISSfON
u��� u��-
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❑ RNMqRliF0.VICEfOYI ❑ RMNCMLfE0.Yf�CCT6
❑wvort�on�smr�nn ❑
(CUP ALL LOCATIONS FOR SIGNATURE)
Hastl»a PeBOM�m eder waketl urMer a contract for tltis department4
VES NO
Has ihis PeraoNfirtn avM Eeen a citY emPbYee9
YES NO
Dcesihie Personlfi�m 0� a slfili not nqrtwlryP� M' �N �urrerrt cilY �PbY�
YES td0
IsttHapeisot�nnatargetedvendoYt .
YES NO
�t? -��.ya-
r,o 60728
)TAL AMOUNT OF TRANSAC710N S
COST/REYEfiUE BlfD6ETED (CI0.CLE ONE�
�L�:L•:
N1DIN6 SOURCE
ACT1VIiY fiUMBER
ANCl4L INFOIiM42iON (DlPWN)
9� - f�.y�-
REPORT TO SAINT PAUL CITY COUNCIL
ON
IMPLEMENTATION OF LIVING WAGE RESOLUTION 96-1512
On January 2, 1497 Ciry Councii passed Resolution 46-1512 establishing a Living Wage Policy
for any Economic Development project receiving over $100,000 (cumulative in any one fiscal
year) in City assistance in which jobs aze created or retained. City Assistance was broadly
defined as loans, bonds, grants, and City t� incentives. The Department of Planning and
Economic Development was charged with implementing this resolution and reporting to City
Council on the outcomes.
In March, 1997 PED staff presented the Administrative Guidelines for implementation of the
program. These were divided into Short Term (immediately doable) and Long Term (requiring
more coordination and planning). [Copy is attached as Ea�hibit A] These Guidelines were
accepted by City Council. PED staff was to return to City Council with the Long Term
Guidelines in the suimner.
SAORT TERM IMPLEMENTATION
� Training session were held for PED Account Officers and subgrantees in March on the
Living Wage requirements and reporting.
�> Inforniation on Living Wage requirements is included in each Compliance meeting that is
held for subgrantees receiving STAR loan or grant money.
� Information sheets were prepazed for PED Account Officers to have as a ready reference
when they are working with businesses applying for City funding. [E�chibit B]
� PED staff is also prepazing a brochure that can be given to businesses to explain the
Living Wage requirements.
� Account Officers were informed when the Federal Poverty Guidelines were updated with
1997 figures. Hourly wages required without health benefits aze now $8.49. Hourly
wages required if health benefits are given employees are $7.72. Staff has located the
information on the Internet so that updating of required hourly wages can be done as soon
as the Federal Poverry Guidelines are posted by the U.S. Department of Health & Human
Services.
� Schedule of businesses subject to living wage requirements is shown in the table on the
next page. Projects aze added to the table when they go through PED Credit Committee
to finalize the financing.
a� � 1 zy �
LIViNG WAGE REPORT TO SAfNT PAUL C1TY COUNCIL
Name i$ Amount � Date of Job Creafion Anticipated Hourly Wages
� I Assistance FT PT
Inc
1997
$16.85
261 E Sth
not
not
School � $7�� � not closed 10(YR 1
Mazket � $740,220.00 nat close 55 $6-15
;s Familv Care Ctr*** I $100_000.00� not close 0 OT
LONG TERM IMPLEMENTATION
� Job Linkage --The City has become an active partner in the Ramsey County Community
Parmership for Welfare Reform, which is working to develop a centralized system to
allow employers to list their job openings . PED staff are warking with the Partnership
because it has broadened its approach from welfare-to-work, to the more important
economic development challenge of linking job seekers with jobs. The Partnership has
also succeeded in engaging the business community over the issue of workforce
development. Short-term, a single telephone number will be up and rutuiing this fall at the
Saint Paul Workforce Center, using the NeighborLink electronic job listing system. Long-
term, efforts aze underway to create a Community Employment System with two
components: a centralized workforce center for employers, and decentralized Work
Resource Hubs for job seekers. Link'no the two will be integrated electronic information
systems and staff skilled in serving business and job seeker customers. The first couple of
Work Resource Hubs aze expected to open this January.
� Businesses with Living Wage Jobs -- People take the work readiness skills they learn at
entry Ievel jobs and advance to better jobs. For low-income residents seeking to enter the
work force, finding a job with a good "job ladder" -- one with room to advance -- is better
than starting at a living wage in a job with no oppornuiity for advancement. In Saint
Paul, two globaily-competitive industry clusters stand out both for the number of entry-
level jobs they create, and the number of jobs that exist for those who want to develop
their sldlls and move up the ladder.
9�-��,y�
Between them, the printing and health caze industries have hundreds of emry level jobs
available, and many other jobs with good cazeer ladders. The printing industry, Uuough
the Printing Industry ofMinnesota trade association, has developed its own job traiuing
pmgraru and is reaching out to find and develop qualified candidates from non-traditional
populations. The Health Care industry, through the Hospitat and Health Care
Partnership, is exploring the creation of a pilot program with the City and the Port
Authority to develop a customized training program not only for the 500 entry-level jobs
they estimate aze available today, but trainiaig programs that will move existing entry-
level workers up the job ladder.
� Child Care — The City has been involved in increasing the supply of child care primarily
by financing improvements through PED's home rehab finance programs. In response to
welfare reform, the State has guaranteed fuli funding for welfaze-to-work child care, and
the Ramsey Counry Community Partnership for Welfare Reform, with a grant from the
McKnight Foundation, is developing a three-pronged strategy for delivering on this
guarantee. The first strategy is to develop the capacity of existing child-caze providers to
provide more child care and evening child care (the area where our e�sting prograans will
be most effective). The second strategy is to streamline the reimbursement process so that
providers can get paid more quickly (not an area where we are involved). And the third
strategy is to develop a network of neighbarhood-based child-caze providers to provide
them with information and support (an area where we will probably be involved as part of
the neighborhood-based Work Resource Hubs that aze being developed).
s� Transportation -- The State has provided Ramsey County with funding (estimated at
$640,000 for two yeazs) for welfare-to-work transportation. A task force of the Ramsey
County Community Partnership for Welfare Reform has developed a process for
soliciting and awarding welfare-to-work transportation grants by the end of this year. The
Ciry has been involved through staff attending task force meetings and by encouraging
the Saint Paul Red Cross, probably the lazgest non-profit transportation provider in the
Twin Cities, to submit a grant application.
� Cooperation with other governmental entifies -- Duluth and Minneapolis haue passed
Living Wage Resolutions within the past yeaz. The City of Vadnais Heights has
insfituted a policy that a criteria far assistance given through TIF financing will be the
ability of the business to provide "quality jobs." PED staff has also talked with city staff
in Chicago and Los Angeles and at the National League of Cities about living wage
proposals.
� Responsible labor relations -- This is not PED's azea of speciality. However, where
there are good labor relations in a company, it usually translates into a better project.
That situation is considered a plus when a company applies for public assistance.
9� � t a.y �—
Eghibit A
City/I�2A Living Wage Jobs Policy
Administrative Guidelines
Implementation Highliglits - Short Term (See Living Wage Jobs Task Force Policy
Recommandations attached)
PED wi11 create a facdinformation sheet regarding the Living Wage Jobs Policy and PED
account officers will provide businesses that are seeking public financing with these
requirements.
2. Job creation goals will be defined for each project (in conjunction with state corporate
welfare legislation) and will become part of the contracUloan agreement for each project.
60% of new hires will be required to be Saint Paul residents.
3. Any business receiving pubiic fmancing assistance from the CityBRA for the purpose of
economic development in which jobs are created or retained, will be required to remit a
copy of its Quarterly Wage Detail Report on an annual basis as a function of
servicinglmonitoring by PED account officers. The State requires businesses to file this
report following each calendu quarter to report unemployment insurance. The Quarterly
Wage Detail Report consists of an employee roster, weeks worked and wages earned
during the quarter. Currently, I3RA uses this format to verify employment levels and
satisfy reporting requirements for the Strategic Investment Fund loan program. In
addition to a copy of the report, businesses must provide an affida�it certifying any new
hires and whether they reside in the city of Saint Paul.
4. The Public Pwpose form, adopted by Council, with addition of a check-off to report
businesses subject to the Living Wage Jobs Policy (as defined by City Council
Resolution adopted U2J97), will be used as a controi mechanism for monitoring and
reporting. See attached draft. Monitoring will be done by PED account officers and
reported by compliance staff to City Council annually on April 1(in conjunction with
report requirements for corporate welfaze).
5. Any business unable to pay the living wage must provide a detailed explanation to PED,
which, upon review, may tecommend to the City CounciUHRA a waiver to ttris
requirement. This waiver may be granted by resolution. Businesses requesring waivers
may choose to request a waiver upon initial applicafion review, at time of HRA/Council
approval, ar any time after receiving financing if the business finds it is unable to meet
established requirements.
6. Language will be added to contracdloan agreement documents for businesses subject to
the Living Wage Jobs Policy to provide that failure to comply will result in a default.
Options to remedy (sanctions) the default include:
A. Accelerate loan (demand note) �'� '� a ' y �
B. Increase interest rate to mazket rate
PED is prepared to nnplement the Laving Wage 7obs Policy by Mazch 15, 1997, for business that
have made inirial contact about PED programs and support after January 2, 1997. PED will
identify those businesses as we seek approval from the I�Rt-1 Boazd.
DRAFT
Impiementation Highlights - Outstanding Long Term Issues (See Livina Wage 3obs Task Force
Policy Recommendations attached)
More fully develop a process to advertise jobs created to the entire communiry includ'uag
low-income people through community-sponsored arganizafions or job linkage progra.tns.
Utilization of the NeighborLink Enterprise Community Project will be used as a focus
point for the advertising of all new jobs that are created via city economac development
projects.
8. More fully define and develop a process to focus job creation and retanfion at businesses
which provide living wage jobs to its employees by giving priority over businesses which
have not traditionally paid living wages.
More cleazly define "tesponsible labor relafions" and preferential status for assistance to
businesses that engage in responsible labor relations.
10. The City of Saint Paul Intergovernmental Relations staff will work with the
Metropolitan Council and other appropriate state and regional agencies and the legislature
to promote standazds consistent with these guidelines for job creation and retenfion
assistance by public development agencies throughout the region.
11. Trained and work-ready empioyees and facilitation of access to child care and public
transportation should be addressed by building on the existing system and within the
development of a comprehensive job readiness program. A proposal will be developed by
PED's Workfarce Development Division.
PED will draft a proposal addressing implementation of these outstanding long term issues of the
Living Wage Jobs Policy by June 10, 1997.
EXI�BIT B
CITY OF SAINT PAUL
LIVING WAGE REGULATIONS
�� -1 a�t �-
On January 2, 1497 City Council passed Resolution 46-1512 establishing a Living Wage Policy for any
Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City
assistance in which jobs are created or retained. City Assistance was broadly defined as loans, bonds,
grants,and Citytax incentives.
The Resolu6on excluded from these requirements the following:
1. Conduit bonds.
2. Small businesses as defined in MN Statute 645.445.
3. Intermediaries, such as a community development corporation or community bank, which serves
as a pass-through agency for the granting of assistance.
4. Business in its first year of existence. {However, regulation will go into effect with the second
year of existence.
5. Redevelopment projects whose only public assistance is site remediation, investigation, site
assembly_
REQUIREMENTS:
1. Living wage is defined as ll 0% of the Federal poveriy guidelines far a family of four ($8.49 for
199?). If the business provides employer-paid basic health insurance coverage, living wage is
defined as 100% of the of the Federal poveriy guidelines for a family of four ($7.72 for 1997).
2. Any business unable to pay the living wage must provide a detailed explanafion to PED, which,
upon review, may recommend to the City CounciUHRA a waiver to this requirement. This
waiver may be granted by resolution. Businesses requesting waivers may choose to request a
waiver upon initial application review, at time of HRA/Council approval, or any time after
receiving financing if the business finds it is unable to meet established requirements.
3. Job creation goals will be defined for each project (in conjunction with state corporate welfare
legislation) and will become part of the contract/loan agreement for each project. 60% of new
hires will be required to be Saint Paul residents.
4. Language will be added to contract/loan agreement documents for businesses subject to the
Living Wage 7obs Policy to provide that failure to comply wilt resutt in a default. Options to
remedy (sanctions) the default include:
A. Accelerate loan (demand note) B. Increase interest rate to market rate
5. Any business receiving pubiic financing assistance will be required to remit a copy of its
Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED
account officers. The State requires businesses to file this report following each calendar quarter
to report unemplopment insurance. The Quarterly Wage Detait Report consists of an employee
roster, weeks worked and wages eamed during the quarter. In addition to a copy of the report,
businesses must provide an affidavit certifying any new hires and whether they reside in the city
of SainY Paul. amcvwre sePremner i99�
q�-1a.��
EXHIBIT B continued
Account Officer Guide
Living Wage/Corporate Welfare Process
Assistance includes loans, grants, City tax incenrives, bonds (except conduit bonds are e%cluded).
Step 1. Apply this matria to the project to determine if eitherlboth Corporate
Welfare and Living Wage regulations apply:
Criteria Corporate Welfare Living Wage applies
applies
Assistance is for economic devel'mt in �Y XXX
which jobs are created or retained
Assistance is more than $25,000 but less X�'Y DOES NOT APPLY
than $100,00Q in one fiscal year
Assistance is more than $100,000 XXX XXX
[cumulat3ve in any one fiscal year]
Assistance is for site remedia6on, DOES NOT APPLY DOES NOT APPLY
investigation & assembly
Assistance is for small business as defined � DOES NOT APPLY
by MN Statute 645.445, e.g.
20 or fewer employees;
Less than $1,000,000 gross revenues in
preceding fiscai year; ar
Less than $2,500,000 if a technical or pro-
fessional service;
Is not an�liate or subsidiary of a
business dominant in its field of operation.
Recipient serves as a pass-through agency DOES NOT APPLY DOES NOT APPLY
for assistance such as CDC, bank, etc.
Recipient is a business in its first year of XXX DOES NOT APPLY for
existence first yeaz but does apply
beginning with second
year
Recipient is a not-for-profit DOES NOT APPLY �'YX
GO TO STEP 2 -i
q�.��� �-
Step 2. Compliance and Reporting Requirements
Work with the recipient of the public financing to detennine:
A. what are realistic job goals and wages for this entity to meet?
• Sanc6ons will apply if goals are not met within two yeazs of receiving public assistance.
• These requirements will be part of the contract/loan agreement.
• 60% of new hires must be St Paul residents.
B.. Fill out a Public Purpose Sumuiary.
• Check if Corporate Welfaze andlor Living Wage applies.
• Indicate Job Creation and Wage goals as well as number of jobs retained.
C. Include in the HRA/Credit Committee report the average wage the business currently pays its
employees
D. If assistance is approved by the IIRAICredit Committee, fill out a Corporate Welfare form if it
applies and forward to Ann Copeland.
E. Be sure proper language regarding Corporate Welfaze/Living Wage compliance and reporting is
included in the financing agreement.
F. Collect an initial Quarterly Wage Detail Report from the business.
G. Annually, as part of the loan/grant servicing, coilect a Quarterly Wage Detail Report and a letter
certifying iffhow job creation and wage goals have been met.