Cottage Grove City Government Hands Out Subsidy to Hy-Vee Development

Where is the public benefit? The Economic Development Authority is meeting on November 10, 2015 at 730am-930am and will be finalizing the business subsidy agreement in regards to the Hy-Vee development.  It is approximately $1,380,000 and in the text of the agreement calls for the “creation of 50 full-time or full-time equivalent jobs with wages of at least $11 per hour, exclusive of benefits.”  Not a good deal for taxpayers or workers at the proposed store.  The business subsidy agreement is lacking in local hiring goals, minority outreach, labor harmony, weak claw back language and any sort of community benefits for the residents of Cottage Grove.  The City’s subsidy picks economic winners and losers along with impact the union workers at Cub Foods just down the road.Cottage Grove should table the subsidy agreement and start over in crafting an agreement for everyone, not just developers.  Or perhaps it should get out of the business of subsidizing businesses which would locate in the city regardless of financial incentives.  The present subsidy agreement reflects badly on elected officials who should be better guardians of the public purse.