RES 11-40r
J
Extract of Minutes of Meeting of the
City Council of the City of Elk River, Sherburne County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Elk
River, Minnesota, was duly held in the City Hall in the City of Elk River, on July 18, 2011,
commencing at or after 6:30 P.M.
The following members were present: Mayor John J. Dietz and Councilmembers Nick
Zerwas, Jerry Gumphrey, Matt Westgaard, and
Paul Motin
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introduced the following resolution and moved its adoption:
RESOLUTION NO. I I- 40
RESOLUTION APPROVING AN ASSIGNMENT OF TAX ABATEMENT
and the following were absent: none.
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Member Zerwas
BE IT RESOLVED By the City Council (the "City Council's of the City of Elk River,
Sherburne County, Minnesota (the "City") as follows:
Section 1. Background; Findings.
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(a) The City has entered into a Tax Abatement and Business Subsidy Agreement dated
February 28, 2006 (the "Abatement Agreement"), with Jon Jacobs and on December 20, 2006 the
City consented to the assignment of Jon Jacobs' interest in the Abatement Agreement to CPE
Exchange 25613, LLC, a real estate holding company of which he is the sole member (together with
Jon Jacobs, the "Assignor").
(b) The Assignor has, on June 30, 2011, conveyed that certain real property, legally
described as Lot 2, Block 2, Elk River Business Park, Sherburne County, Minnesota (the "Tax
Abatement Property"), to CPE Exchange 26404, LLC which has leased the Tax Abatement
388753v2 JSB EL185-13
Property to Wisconsin Label Corporation (the "Assignee") and the Assignee has acquired the assets •
of Quality Label and Barcoding Incorporated.
(c) The Assignor and the Assignee have requested that the City consent to the
assignment of the Assignor's rights and obligations under the Abatement Agreement to the Assignee
pursuant to an Assignment and Assumption of Tax Abatement and Business Subsidy Agreement by
and between the Assignor and the Assignee (the "Assignment and Assumption Agreement").
Section 2. Approval of Assignment.
(a) The City hereby consents to the assignment of the Assignor's rights and obligations
under the Abatement Agreement to the Assignee pursuant to the Assignment and Assumption
Agreement.
(b) The Assignment and Assumption Agreement is hereby approved in substantially the
form submitted to the City.
(c) The Mayor and the City Administrator are hereby authorized to execute the Consent
and Agreement to the Assignment and Assumption Agreement on behalf of the City.
The motion for the adoption of the foregoing resolution was duly seconded by Member •
Gumphrey ~ and upon vote being taken thereon, the following voted in favor thereof:
Mayor Dietz, Councilmembers Zerwas, Gumphrey, Westgaard and Motin.
and the following voted against: none.
whereupon said resolution was declared duly passed and adopted.
J j. ietz, ay
ATTEST:
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C~
Tina Allard, City Clerk
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388753v2 JSB EL185-13