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6.2 EDSR 12-16-2013 ilk Request for Action River To Item Number Economic Development Authority 6.2 Agenda Section Meeting Date Prepared by General Business December 16, 2013 Jeremy Barnhart,Deputy Director, CODD and Brian Beeman,Director of Economic Development Item Description Reviewed by Bank of Elk River Business Subsidy Agreement Tax Abatement Default Reviewed by Action Requested A motion to approve the EDA Finance Committee's recommendation of Option 2 set forth below as the next step to be taken by the City under its Tax Abatement and Business Subsidy Agreement with the Bank of Elk River in light of the Bank's failure to meet required wage and job goals. Background/Discussion The EDA's Finance Committee met on Tuesday,December 10 to review the Bank of Elk River's information regarding their satisfaction of the job and wage goals set forth in its 2006 Tax Abatement and Business Subsidy Agreement with the City. The Agreement provided for reimbursement of up to $300,000 of the Bank's project costs associated with the construction of the downtown bank through tax abatements over a 12 year period. The Agreement required the Bank to create 20 jobs above the 63 existing downtown jobs at a wage of 15$per hour or higher within a 2 year period from the date of the subsidy. This time-period has been extended through November of 2013 and no further extensions are allowed by law. The Finance Committee has determined that the maximum number of new jobs added at the Downtown branch was 13 full time jobs,in December, 2010. Thus, the Bank did not meet the job goals required under the Agreement,which constitutes a default of the Agreement. When a default exists, the Agreement authorizes the City to terminate the Agreement and future tax abatement to be paid. In addition, the Agreement requires reimbursement of all subsidy received on a pro-rated basis based on the pro-rated portion of the job goal met. Since the Bank met 65% of the job and wage goals,it would be required to repay 35% of the subsidy received to date. To date,the Bank has received approximately 42% of the maximum tax abatement amount authorized under the Agreement. The EDA can enforce the Agreement as noted above or it can amend the Agreement to better clarify the intent of the City concerning default and remedies. Staff has identified the following options: Option 1. Determine that the Bank failed to meet the job and wage goals and that a default in the Agreement exists, terminate the Agreement, discontinue future tax abatement and require return by the Bank of 35% of all tax abatement payments paid. r . . . E INARfl?EI Option 2. Amend the Business Subsidy Agreement to reduce the number of jobs required to the 13 achieved by the Bank in December 2010 (its "highwater mark"), allow tax abatement payments to continue as contemplated under the Agreement up to a maximum of$195,000 (65%of the original $300,000) within the 12 year period provided under the Agreement. Include indemnification of the City by the Bank for any liability associated with the amendment or subsidy paid pursuant to the amendment. The EDA Finance Committee recommends Option 2 as it reflects the impact of the downturn in the economy,but retains the job to subsidy ratio originally proposed for the Project.With this option, staff would prepare an amendment to the agreement,to be approved by the City Council,likely in January 2014. Financial Impact N/A Attachments • Finance Committee packet dated December 10,2013. N:\Departments\Community Development\Economic Development\EDA\Adminstrative\Agenda\EDA Agenda\Year2013\12-16-2013\jb 6.1 sr Bank of Elk River Default.docx 0 Elk -.... -- Request for Action River To Item Number EDA Finance Committee 4.2 Agenda Section Meeting Date Prepared by General Business December 10, 2013 Brian Beeman, Director of Economic Development Item Description Reviewed by Bank of Elk River Business Subsidy Agreement Tax Jeremy Barnhart,Deputy Director, CODD Abatement Default Reviewed by Action Requested Consider terms for Bank of Elk River's repayment of Tax Abatement per the Business Subsidy Agreement and make recommendation to the EDA. Background/Discussion At its November 5, 2013 meeting, the EDA Finance Committee reviewed the default status of the Bank of Elk River,relative to their Pay as you go Tax Abatement agreement totaling$300,000 approved February of 2006. At that time, the Finance Committee recommended suspending all future abatement and requesting the bank pay all attorney fees as required in the Business Subsidy Agreement and directed istaff to obtain information on wage and job goals from the bank,which was received November 20, 2013. Additional clarification was received December 3, 2013 which included an updated employment chart detailing the termination dates. That information is included in Attachment 3. Due to the condensed time line, the completed analysis was not available for the packet;the EDA Attorney,will provide that verbally on December 10. Unless it is determined that further research is needed, the committee will be determining the pay back amount of the unmet goals going back to 2006 and making a recommendation to the EDA for their December 16, 2013 meeting. The City Council will serve as the final authority following the recommendation from the EDA. Financial Impact N/A Attachments • Bank of ER Response to Letter dated November 20, 2013 • Bank of ER additional reporting High Water marks dated March 30, 2011 • Bank of ER, City, State Reports (Attachment 3) • November 5, 2013 Supporting Documents ill P1lEfE1 11 INATUREJ Bank • November 20,2013 Brian Beeman Director of Economic Development 13065 Orono Parkway Elk River,MN 55330 Re: Bank of Elk River Tax Abatement Agreement dated April 17,2006. Dear Mr. Beeman: I am writing in response to your letter dated November 5,2013 in which you are requesting information from the Bank regarding employment records relating to the job goals outlined in the tax abatement agreement dated April 17,2006. See chart below: Date FTE #of Full Time Em loves Abp`0, (Statfil` 63 56 _ Dec`07 68.8 (+5.8) 61 (+5) Dcc O8 , 6720,,,21/7-6-(+6.17) 6a(±6) Dec `09* (+9.26) 68 (+8) Dec `10*! :76.49(+13.49)_,, 71 (+15) Sept`11* 62 05 ( 95) 59 (+3) Se I t`13* 61 -2) 58 +2 * Job report was submitted to city to substantiate these numbers. The above chart best represents true job growth as it relates to the tax abatement assistance granted to The Bank of Elk River in 2006. The job goals were to"create 20 full-time jobs at a wage of $15/hour,in addition to the job retention of 63 FTE positions(Elk River downtown location as of April 2006)" The chart shows the change in both FTE(reflecting net job growth)and the#full time employees (showing how many full time employees on staff)for each stated point in tune for our.Main St location ONLY. Unfortunately, as you can see,at no point did the bank add 20 full time employees above and beyond the starting figures in 2006. As requested,I am substantiating December of 2010 as our"highwater"mark for jobs created and retained. Fortunately,this also coincides with a date that we did submit the required paperwork for MN State DEED reporting. I sent a copy of this report to you via email on November 5,2013 for your review and analysis. I have also attached to this letter a spreadsheet with more specific data • for the"new hires"since the Benefit Date as of December 31,2010. 630 Main Street, Elk River, MN 55330 p) 763-441-1000 'f) 763-441-0847 www.thebankofeikriver.com Member FDIC 0 You will see at that point in time we had created 18 full time jobs that met the minimum$15 per hour requirement. Unfortunately, all of those jobs were not NET additions to our starting FTE of 63. Some of the new hires were filling vacancies due to turnover and there were some positions that were eliminated. Therefore,the closest we got to meeting the retainment portion of the goals was a net increase of 13.49 FTE and 15 new full time employees as reflected in the chart on page 1. Please let me know if there is any further information I can provide to help the City in determining the next steps. I am hopeful that detailed data provided representing our"highwater"mark is satisfactory and will provide you the information needed to move the process forward. S'.'erel, oy, ,4. j :ill LaVigne Chief Operating Officer The Bank of Elk River (763)241-8558 S • 0 New Hires(Main)4/2006-12/2010 Start Date 04/03/2006 _ End Date 12/31/2010 Home Dept-Check Hire Date File Number Wage(Hourly Rate) PT/FT 01CRED 07/07/2010 000438 $59.83 FT 01LCML 06/30/2008 000394 $52.98 FT 010INV 04/30/2007 000381 $51.66 FT 01LCML 02/22/2010 000425 $47.81 FT 01LCML 06/01/2010 000432 $38.20 FT 01LCML 04/19/2010 000428 $36.76 FT 01CRED 03/08/2010 000426 $34.83 FT 01 LCML 05/04/2009 000404 $28.58 FT 01CRED 11/08/2010 000440 $27.14 FT OOTECH 06/04/2009 000407 $24.14 FT 01LNSP 02/02/2009 000400 $23.77 FT OOTECH 12/02/2009 000423 $22.14 FT OOTECH 04/09/2007 000380 $19.91 FT 01LNSP 09/10/2009 000420 $19.64 FT 00CMPL 10/11/2006 000366 $17.14 FT 01LCML 10/09/2008 000398 $17.14 FT 01LNSP 09/11/2006 000365 $17.04 FT 01 RETB 07/16/2007 000384 $15.89 FT • 01TELL 11/29/2006 000370 $12,89 FT OODATA 02/13/2007 000377 $12.75 FT 01TELL 07/06/2009 000411 $12.04 FT QOBLDG 06/21/2010 000436 $15.14 PT OODATA 10/30/2006 000368 $13.87 PT 01TELL 05/20/2010 000430 $12.64 PT 01TELL 01/03/2007 000374 $12.62 PT 01LNSP 05/30/2006 000360 $11.93 PT MAR. 30. 2011 10: HAM CITY OF ELK RIVER' NO. 8470 P. 1/2 -, )c River 13065 Orono Parkway 1Ok River,MN 55330 Match 30,2011 LeRoy Lindenfelser The Bank of Elk River 630 Main Street Elk River,MN 55330 In February 2006,the City of Elk River approved$300,000 of Tax Abatement assi Lance to The Bank of Elk Rivet. As a requirement of receiving such assistance the company is r tluired to meet the job and wage goals noted below within 2-years of the Certificate of Occupancyyissued September - 13,2007. Create at least 20 full time jobs in connection with the development a f the • Development Project at a wage of at least$15.00 per hour,which incl Ides benefits not requited by law An extension of 2 years was granted to allow for the goals to be met by Septembex11l3,2011 however,an update on the status of your job and wage goals is required by the Citj of Rik River and the State of Minnesota on an annual basis until the goals are met. Therefore,pleasI~complete the attached chart and fax this information tome at 763.635.1090 as soon as possible. Thank you for your attention to this matter. Please contact me with any questions'iat 763.635.1041. Sincerely, Catherine Mehelich Director of Economic Development Enclosure: 2011 Minnesota Business Assistance Form 1 Phone:763.635,1000 ' Fax:763.635.1090 wwwclelk-rlvarmn.us Ii • ■ March 31.2011 • Catherine Mehelich Director of Economic Development 13065 Orono Parkway Elk River, MN 55330 Dear Catherine: Enclosed is The Bank of Elk River's 2011 Minnesota Business Assistance Form. The numbers reported are as requested, by positions not FTE's. As of December 31,2010,The Bank of Elk River's FTE was 76.49;this represents 71 full time and 13 part time employees. All full time employees are offered a Health and Dental Insurance Plan. Not all employees take the insurance,and there are different levels based on employee only,employee plus one,employee plus two,and family coverage. For employee only coverage the annual premium paid by the bank is $2580.24 plus a contribution to the employee's HSA account for$1500.00. The bank in addition to this has added a HSRA portion that will reimburse employees for a portion of their deductible if they go over a specified threshold. Dental insurance for employee coverage is$360.24. Therefore the hourly value to a full time employee for employee only coverage is$2.14 per hour and will vary depending on dependent coverage. The Bank also offers employees Basic Life Insurance and Long Term Disability Insurance which is approximately$:13 per hour. Sincerely, it C • Cynthia Barney Director of Human Resources/AVP Enc. 110 630 Main Street, Elk River, MN 55330 p)763-441-1000 f)763-441-0847 www.thebankofelkriver.com Member FDIC MAR. 30. 2011 10: 11AM CITY OF ELK RIVER NO. 8470 P. 2/2 • • Q . 0 XI to 1 71 0 El 6 b 0 N •Q U .y H O P i 0 4,02 y a 4.4 o in • t4 '''', in 44 Cd y g ,fit u'� u az 6 • a ;v V 8 ,, al n • :4,, ..,,, "i 's 4.6' c�?a 5 43 g .0 Ca (NI U J r' ('N, (N) C'`f)r-e U 4 if ch• N 0. 610 0 . [ .,_, 14 _P.', tti 0' d ' e M Q - a O '° cP P ,° a fin° J `' _ u v ~� - . . as , `0 g v g �• 0 , .4 a w O d3 cs � ' 1 _ ii In 0 • P IL' Wsea ' 47 ° ,-, 0 C3 t b1 'd w0 N a' U v .0 V A d o) © ti' N uuun U , t 1 t� "O 1L2-. icy+ vl �'" 2 0i � Chi C O O Q '4 d Q 8 8 0 (a 0 P.j [� O �Gl ,� ^YJ u m C�3, 4 .- M 4'f l� p� -1 Y, t'+ O, - a P-,. N �7' G� *C a �" �' sus bs rig Ett 69 65 sg �3 49 69 A C,( H • ti Page 1 Documents from The Bank of Elk River • Conference call with our Attorney Andrea asked that The Bank of Elk River provide: • Any forms they feel were reported incorrectly correct and return • Provide us with a current form for 2012 • Provide us with termination dates and wages for the time period 2006-2010 Email(Page 2) • This email explains where the retention number of 63 originated from. The Bank of Elk River Provided: • Updated and corrected form for 2010 (Page 3) • Signed reporting form for December 2012 (Page 4) • Spread sheet that shows hire dates for the year 2006.Shows the start FTE number that refers to the corrected number from 68 to 63 FTE. (Page 5) New hire report from 4.2006 to 12.2010: (Page 6) • Reason for this report is to show employees that have been hired bank wide and many have • Moved to the downtown branch and do not show up as new hires for the • downtown branch. • These have been included in the FTE number. Termination Report: (Page 7) • This report shows date and wages of employees that were terminated. • This report does not represent jobs lost only or people that have left. • These jobs were filled by new hires and internal employee movement from other branches to the downtown branch. New Hires 4.2006 to 12.2010: (Page 8) • This shows jobs created during this time period. • Those in bold fit all the criteria of the contract and policy • Non- bold are new hires but do not fit the criteria of the policy S Page 2 of 2 missing. Thanks( P.S. You had inquired about the ownership of the American National Bank building in Elk River. According to the County website it is owned by American National Bank of Minnesota(Brainerd address). Also, I checked into your question about The Bank of Elk River's business subsidy/job creation obligation. According to our records The Bank is required to create 20 full-time jobs at$15.00+ by Sept. 13.2009(2years after certificate of occupancy)in a to tp retaining 68 existing FTE,all positions being located in Elk River. Our records indicate employment apt 68 FTE time of application(2006). In order to meet the busines— subsidy requirement the City �Q,Q, would need d6sunieritation for a total of 88 FTE at a base wage of$15+/hour excluding benefits required by law. If you ' feel The Bank has reached this goal, please let me know and I will forward you the form to complete and submit in order to close out the business subsidy requirement on this project. Otherwise,we will be requesting this information at the end of the subsidy benefit period in September 2009. Catherine Mehelich Director of Economic Development City of Elk River 13066 Orono Parkway • Elk River,MN 55330 PH 763.635.1041 FX 763.635.1090 rES Mc 3aviKLotfip 4.ri 1 4006 a g-135=43 /lo Atm st ,4007 ally 1-1134:::69,8 ,,e 1 p l q, I tilo = 0, 1 laa , 1 FFr ?O '9 3© + 3'7i -&9, 1 /A0,4 • •/ \ zizizoog ` w� 1.T -,..;.tam-a a-s,-_-.__�.-_--_____. _- _ ----- .mod . /ach of the following wage categories,indicate the number o 4th, a .firdIfaih `d 5 Isiii e hasbiiii5 fZafg:nc1' 6rattft ablrouxlyavlue ainrid pilo prp tidK laitt benefits for those jobs. (Full-time jobs are defined as new,permanent,non 0 asonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a / 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week / within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and •/ demonstrable. Hourly Wage A.1(M)=1,74 B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 7. 2- 20 to $ $ $13.00 to$14.99 1 7 S' $ $ $15.00 to$16.99 - I /D $ $ ' $17.00 to$18.99 3 / ) $ $ $19.00 to$20.99 2 3 6.- $ $ $21.00 to$22.99 1 , r.1 $ $ $23.00 to$24.99 2- 3 5" $ $ $25.00 to$26.99 `--^ 3 ,3 $ $ $27.00 to$28.99 2. / 3 $ $ $29.00 to$30.99 '--. re 1p $ $ $31,00 and � I $ $ higher '� 32. Has the recipient achieved all goals(see Question 29,30 and 31)and fulfilled all obligations stipulated in the agreement(Mark one.) D Yes ❑No Section 5: Recipients Failing to Fulfill Obligations (Do not complete this section(questions 33-39)((you completed it on another MBAF submitted to DEED. Please below note which MBAF includes the information.) 33,During the period January 1,2012 through December 31,2012,did your organization have any recipients who failed to report as required by Minn.Stat.§116,1,993 and§1161994? (Mark one.) ❑Yes(Indicate the name of each recipient falling to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages if necessary.) . • Name of recipient: • Type of subsidy or assistance(See Questions 24&25.): • Value of subsidy or assistance: ❑No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on August I,1999 through December 31,2012,that was required to be fulfilled by the time of this report? (Mark one.) ❑Yes(Complete the remainder of this section.) [J No(Stop here and submit form to DEED,) ■ Üpc/ac/ . (bri eC Ad isi, , ilk Minnesota Business Assistance Form(12/10/12) Page 4 of 5 Dept.of Employment and Economic Development 1 For each of the following wage categories,indicate the number of actual(new)jobs created and/or retained since the benefit date and the actual hourly value of any employer provided voluntary benefits for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 0 , 40 hour work week. Part-time is defined as a new job in which a n employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Ili 1., t Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job , time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits less than$7.00 $ $ $7.00 to$8.99 $ $ . $9.00 to$10.99 t $ $ $11.00 to$12.99 $ $ $13.00 to$14.99 $ $ $15.00 to$16.99 _ $ $ _ $17.00 to$18.99 $ $ $19.00 to$20.99 A_Z' $ $ $21.00 to$22.99 $ $ $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 • $ $ $29.00 to$30.99 $ $ $31.00 and Q $ $ higher I 1-dt- t l'A Toll/I P(C-- ,-- (0I 32. Has the recipient achieved all goals(see Question 29,30 and 31)and fulfilled all obligations stipulated in the agreement(Mark one.) ❑Yes ❑No • 41. Section 5: Recipients Failing to Fulfill Obligations - (Do not complete this section(questions 33-.39)(f you completed it on another MBAF submitted to DEED. Please below note which MBAF includes the information.) 33.During the period January 1,2012 through December 31,2012,did your organization have any recipients who failed to report as required by Minn.Stat.§1163.993 and§116J.994? (Mark one.) ❑Yes(Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages{'necessary.) • Name of recipient: • Type of subsidy or assistance(See Questions 24&25,): • Value of subsidy or assistance: ❑No 34.Did your organization have any recipients who failed to achieve any goals or fhlfill any other obligations under an agreement signed on August 1,1999 through December 31,2012,that was required to be fulfilled by the time of this report? (Mark one.) ❑Yes(Complete the remainder of this section.) ❑No(Stop here and submit form to DEED.) Oki) A,c(---- e.60 II j 1 ii3 Minnesota Business Assistance Form(12/10/12) Page 4 of 5 Dept.of Employment and Economic Development f5 Hire Date Rate Amount Employee Type Location 0 05/05/1980 110.58 Full-time Regular Main 07/01/1965 73.18 Full-time Regular Main I 01/08/2004 55.89 Full-time Regular Main ���r l 1 ') ,,� 05/08/2000 51.11 Full-time Regular Main �ji/ �j 02/09/1979 4122 Full-time Regular Main f 06/27/1994 38.46 Full-time Regular Main . 10/29/1990 37.00 Full-time Regular Main 01/19/2005 35.34 Full-time Regular Main 09/09/2002 33.00 _Full-time Regular Main 5 ( t. 09/16/1986 32.17 Full-time Regular Maln 03/09/1992 30.27 Full-time Regular Main 06/25/1993 27.79 Full-time Regular Main ,�I r �E t° 09/17/1990 27.64 Full-time Regular Main 01/26/1981 26.96 Full-time Regular Main 06/18/1990 26.44 Full-time Regular Main 10/12/1999 26.19 Full-time Regular Main ] P, / MP 03/25/1974 26.09 Full-time Regular Main I 11/13/1992 25.26 Full-time Regular Main 02/03/2006 24.04 Full-time Regular Main 08/01/1988 23.50 Full-time Regular Main 01/18/2005 22.74 Full-time Regular Main 06/01/2000 21.13 Full-time Regular Main 02/17/1998 19.23 Full-time Regular Main 09/08/1986 19.12 Full-time Regular Main 04/03/2000 19.03 Full-time Regular Main 07/21/1993 18.54 Full-time Regular Main 12/05/2000 17.50 Full-time Regular Main 03/06/2006 17.31 Full-time Regular Main t 02/11/2005 17.18 Full-time Regular Main 01/25/2006 17.00 Full-time Regular Main 08/0411997 16.67 Full-time Regular Main 02/05/1996 16.34 Full-time Regular Main 08/05/2002 16.00 Full-time Regular Main 08/03/1999 15.73 Full-time Regular Main 07/28/1993 15.54 Full-time Regular Main 0 01/21/1998 15.49 Full-time Regular Main 08/16/1999 15.43 Full-time Regular Main 10/22/2004 15.09 Full-time Regular Main 11/2511996 15.00 Full-time Regular Main 02/21/2006 14.86 Full-time Regular Main 05/24/2004 14.67 Full-time Regular Main 09/20/1990 14.21 Full-time Regular Main 09/16/1999 13.66 Full-time Regular Main 03/24/2003 _13.44 Full-time Regular Main 06/03/1996 13.34 Full-time Regular Main 09/22/1998 13.00 Full-time Regular Main 08/19/2002 12.49 Full-time Regular Main 07/29/2002 12.25 Full-time Regular Main 11/09/1998 12.00 Full-time Regular Main _ 01/18/2001 11.81 Full-time Regular Main 04/15/2002 11.67 Full-time Regular Main 03/26/2002 11.46 Full-time Regular Main 02/07/2005 11.04 Full-time Regular Main 11/01/2005 10.40 Full-time Regular Main 01/12/2006 9.25 Full-time Regular Main ' 07/18/1977 20.77 Part-time Regular Main 06/01/1981 19.88 Part-time Regular Main 01104/2000 14.43 Part-time Re!ular Main 12/05/1996 13.82 Part-time Regular Main 04/10/2000 12.49 Part-time Regular Main 05/19/2003 12.49 Part-time Regular Main ! 07/01/1968 12.30 Part-time Regular Main I 08/03/2000 11.74 Part-time Regular Main 03/13/2000 11.89 Part-time Regular Main 04/03/2002 11.46 Part-time Regular Main 01/04/2001 10.63 Part-time Regular _Main 11/14/2005 10.50 Part-tIme Regular Main 09/20/2004 10.00 Part-time Regular Main 04/09/2004 9.92 Part-time Regular Main • 0 04/22/2005 9.63 Part-time Regular Main 02/21/1996 9.25 Part-time Regular Main 04/25/2006 7.00 Part-lime Regular Main 04/28/2005 16,50 Temporary Main le 1 ea,sc-,..iii.de t i New Hire Report I ! From:4/2006-12/2010 Date Hired Employee Name Date Hired Employee Name 4/26/2006 Kevin Hagen 2/9/2009 Amy Schmidt 5/8/2006 Renee Fennema 2/9/2009 Beverly Persons /2,5/.2006 aW atta 5/472'009'CorefWerriple 6/29/2006 Matthew Bonin 6/1/2009 Samuel Soderquist 6/29/2006 Amanda!Calk 6/1/2009 Emily Girtz 8/8/2006 Jamie Plude 06/4,2009Freder-iekkBlake' 8/8/2006 Laura Dear 6/23/2009 Jennifer Phelps 4'09/11:/2006 Alisha'Huntley 6/23/2009 Jessica Gadach D/11/2006"Crndy,Alcorn - 7/6/2009 Heather Johnsrud 10/11/2006 Arnie Utermoehl 7/13/2009 LuAnne Agnes • 10/a30/3.006-Jennifer.NJ.FCarthy,, 8/3/2009 Bryn Klersy 11/3/2006 Cynthia Owens 8/11/2009 Christ Bemlott 13429/2006 SarahiDeming 3/27/2009 Kortney Schwartz 12/4/2006 Ryan Burmis 8/31/2009 Stephanie Payne 12/20/2006 Austin Kucheska 9/11/2009 Corey Schiminski 12/15/2006 Bob Brown 9/0/20D91K611y`Hofineister (4/3`/2007'UndsayiSBrue 9/10/2009 Cindy Buswell 1/31/2007 Amy Carlson 11/2/2009 Hannah Lerbs 2/6/2007 Rebecca SchultisS2/2TM/1009-a:M;i.chaelr,Leiner: i /13/2007=,Kate>Swensorm 2/8/2010 Scott Fritz 2/22/2007 Sarah Maher 21,22 1201:0-Jane.Garnpef 3/5/2007 Thomas Pied 3/80010,Jeremy Johns r },9120-0=7'Andrew Ro.rl. p::h 3/8/2010 Amanda Solors d1130/2007-Peter Reimer 419/2010.Jto.bERiodela; 6/18/2007 Bradley Branham 5/10/2010 Holli Rolfe 7/16/2007 Anita Fiedler `5 20/2010-Amy Te; l.- 7/16/2007 Jessica Kyllo 5/20/2010 Heather Osmondson 8/15/2007 Andrea Jorgenson 1/&1010•YDanJAas 10/29/2007 Emma Swindlehurst 6/14/2010 Kristina Roberts 11/19/2007 Alyssa Gueldner 6/14/2010 Aubrey Higgins 11/19/2007 Justina Ramirez 6/14/2010 Jolene Shingledecker 11/19/2007 Elizabeth Keller t60/20104urtis=Andrews 2/29/2008 Katie Solberg 6/29/2010 Janelle Peterson-Alkire 3/13/2008 Courtney Mach w7.14711010-Jo.lmQoppenii 4/15/2008 Rachael Hunt 9/22/2010 Jamie Reznicek 67012008-G.le.r thi rcl. 4i+/8/2010-Jameel:Rizvi 8/28/2008 Elizabeth Berman 9/22/2008 Brenda Wiskur 10/1/2008 Kelsey Abbott 4.13/9/2008--Tiffany<Barre1L 12/17/2008 Jennifer Dugger 4111, 212/20091Ryati Peter-son;4, 2/9/2009 Linda Kofstad J r • I 1 9S .,a e , ,.. c-.).„ f \--,"" (.0 q . .4 1 ,... 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JJMJQ0QJJ W 2 > 222W2' W00) 00 , 120) JHQI— JJ 2 W O Z 0 0 0 LL U LL W Z W W Z . 0 Z W Q J Q W W /? a O UJOJJJ0J0E- J - I- JUJJF- 0M01- h- m - G T T T T T T T O T 0 0 T O T T T 0 O O T Z Cl) W 1000000000000000 0 0 0 0 0 0 0 0 Page 9 Documents from the City of Elk River • Year's documentation was found for reports: • 2010 • 2011 • 2013 Missing years: • 2007 • 2008 • 2009 • 2012 O I ID S i � r y Department of Employment 1F and Economicllevolopment /6!L esotor 4-17-06 Please fill in date agreement signed(same as question 21) 2010 Minnesota Business Assistance Form for Non-JOBZ Projects • ■ Use the Minnesota Business Assistance Form to report each business subsidy and financial assistance agreement signed from August 1. 1999 through December 31,2009 unless goals have been achieved and reported on a MBAF per Minn.Stat.§116J.993 to§116J.995. You may complete and submit this form online,instead of submitting a paper version. ■ The following government agencies must submit a MBAF: 1)any local govemment/agency that signed a business subsidy agreement since January 1,2005,or represents a population of more than 2,500;2)all state government agencies authorized to provide business subsidies;3)business assistance that exceeds$150,000. ■ Executive Order 08-01 at http://www.governor.state.mn.us/priorities/governorsorders/executiveorders/PROD008598.html requires that recipients for all business subsidy agreements signed on or after January 29,2008,to comply with the Immigration Act of 1986,as amended. The recipient of business assistance must certify that it is currently participating in the E-Verify program located at http://www.uscis.gov and that all newly hired employees hired on or after January 29,2008 are eligible for employment in the United States throughout the term of the business assistance. in DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance may not be awarded after June 1 of each year until a report has been submitted. in Questions? Call(651)259-7179. Information on where to mail or fax your completed MBAF(s)is on page 5. Section 1: (Grantor Information) 1.Name of grantor (funding entity): City of Elk River 2.Name of person completing this form: Catherine Mehelich 3.Street address: 13065 Orono Parkway 4.City: Elk River 5.Zip Code: 55330 6.County: Sherburne 7.Phone number: 763.635.1041 8.Fax number: 763.635.1090 9.E-mail address: cmehelich@ci.elk-river.mmus 4111 10.Please indicate who in your organization should receive the MBAF if different from the person in Question 2. Name: Title: Street Address: City: I Zip Code: Phone Number: . Email Address: 11.Classification of grantor(Mark one.If grantor is entity created 12.Has your organization held a public hearing on and adopted by gov't agency,please indicate affiliation. For example,a city criteria for awarding business subsidies in compliance with EDA would check"City government.') Minn.Stat.§ 116J.994? (Mark one.) ®City government ❑ Yes,in 2010(attach criteria) ❑ Yes,in 2010 but have not yet adopted criteria ❑County government Z Yes,prior to 2010 ❑Regional government If Yes: Hearing Date: 5/15/06 Year Criteria Submitted: 2006 ❑State government ❑ No ❑Other(Please specify): ❑ Other(Please attach explanation.) . 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31,2009 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.) ® Yes(Complete The remainder of the form unless goals have been achieved and ❑No(Stop here,go to section 5 on page 4.) reported in a previously filed MBAF per Minn.Stat. §1161.993 and§1161.994.) Section 2: Recipient Information 14.Name of business or organization 15.Address where business subsidy or financial assistance receiving subsidy or financial assistance: The Bank of Elk River will be used Street address:630 Main Street City,State,Zip Code:Elk River.MN 55330 16.Does the recipient have a parent corporation? (Mark one.) ❑Yes(Indicate name and address of parent corporation below. If more than one,indicate ultimate owner.) ®No Name of parent corporation: Street address: City,State,Zip Code: Minnesota Business Assistance Form(02/10/10) Page 1 of 5 Dept.of Employment and Economic Development 17.Industry of recipient's facility(Mark one.): it ❑Manufacturing ❑Services ®Finance,Insurance,Real Estate ['Retail Trade ❑Wholesale Trade 0 Construction ❑Other(please specify): 18.Did the recipient relocate as a result of signing this agreement? (Mark one.) . ❑Yes(Indicate city and state of previous address and reason recipient did not complete this project at that address.) • City/State of previous address: • Reason project not completed at previous address: • Indicate total number of employees who ceased to be employed by recipient when the recipient relocated to become eligible for the business subsidy. # ®No(Go to Question 19.) 19.What would recipient have done without business subsidy or financial assistance? (Mark one): ❑Remain at previous location,but not expand ❑Remain at previous location but expand at the location ®Relocate to different Minnesota location ❑Relocated outside Minnesota ❑Other: 19A.Was the project a result of eminent domain? ❑Yes ®No Section 3: Agreement Information 20.Total dollar value of business subsidy or financial assistance 21.Date agreement signed(In addition to the agreement date, (Please separate value by type in Questions 24 and 25.): indicate any dates the agreement was amended):April 17,2006 $300,000 22.Benefit date(Indicate the date the recipient receives the business subsidy. If the subsidy involves physical equipment, then the benefit date is the date the equipment is placed into service. If the business subsidy involves property improvements, the benefit date is when the improvements are finished or when the business occupies the property):September 13,2007 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question 25)required to be reported? (Mark one.) ®business subsidy ❑financial assistance 0 24.If the agreement provided a business subsidy,please indicate the 25.If the assistance was one of the four types of financial assistance, type(s)and total dollar value for each type. please indicate the type(s). ❑not applicable,agreement provided financial assistance ®not applicable,agreement provided a business subsidy ❑loan(only principal) $ ❑assistance for property ❑grant(i.e.,forgivable loan) $ by contaminants $ / tax abatement $300,000 ❑assistance for renovating building ❑TIF or other tax reduction or deferral* $ stock or bringing it up to code,and ❑guarantee or payment $ assistance provided for designated ❑contribution of property or infrastructure $ historic preservation districts,when ❑preferential use of governmental facilities $ 50 percent or less of total cost $ ❑land contribution $ ❑assistance for pollution control or ❑other(Specify'subsidy type.): $ abatement $ ❑assistance for a TIF soils condition district $.. 26.If the assistance included tax increment financing,please indicate 27.Are any other grantors providing a business subsidy or financial the type of TIF district. (Mark one.) assistance to the same project? (Mark one.) ®not applicable,assistance was not in the form of TIF ®Yes(Specify each grantor and the value of their assistance below; ❑redevelopment attach an additional sheet if necessary. ❑renewal and renovation ❑soils condition Grantor:Sherburne County Value($):$300,000 ❑economic development ❑mined underground space Grantor: Value($): ❑hazardous substance subdistrict 26 A.If assistance included JOBZ benefits,please indicate type of assistance. (Mark all that apply and please also submit the JOBZ ❑No • MBAF form.) ❑JOBZ ❑JOBZ AgZone ❑Biozone *For questions about TIF reporting requirements contact Arlin Waelti(651)296-7676 at the Minnesota Office of the State Auditor. Minnesota Business Assistance Form(02/10/10) Page 2 of 5 Dept.of Employment and Economic Development Section 4: Goals and Public Purpose Identified in the Agreement 28.Minn.Stat.§116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all that apply.) ❑Enhancing economic diversity ®Increasing tax base(cannot be only purpose) ❑Creating high-quality job growth ®Job retention ❑Other(please specify): ®Stabilizing the community 29.Indicate whether the agreement included the following types of goals,and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment date(s)for each goal.) Goals established? Target attainment dates All goals attained? (month&year) A)Specific wage and job goals to be attained within 2 years ®Yes ❑No Sept 2009 ❑Yes ®No B)Other job-creation and/or retention goals ❑Yes ❑No ❑Yes ❑No C)Other wage goals ❑Yes ❑No ❑Yes ❑No D)Goals other than wage and job goals ®Yes ❑No Complete building ®Yes ❑No (Please attach description of goals and progress toward attainment(if not documented in Questions 30 and 31.) 30. For each of the following wage categories,indicate the(new)job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance No hourly wage- 63 63 $ Benefits$ level goal less than$7.00 $7.00 to$8.99 • $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 $ $ $13.00 to$14.99 $ $ $15.00 to$16.99 20 20 $ $ $17.00 to$18.99 $ $ $19.00 to$20.99 $ $ $21.00 to$22.99 $ $ $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 $ $ $29.00 to$30.99 $ $ $31.00 and $ $ higher Minnesota Business Assistance Form(02/10/10) Page 3 of 5 Dept.of Employment and Economic Development 31. For each of the following wage categories,indicate the number of actual(new)jobs created and/or retained since the benefit date and the actual hourly value of any employer provided voluntary benefits for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a • 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 2 1 3 $ $ $11.00 to$12.99 3 4 $ $ $13.00 to$14.99 6 7 $ $ $15.00 to$16.99 1 8 9 $ $ $17.00 to$18.99 4 8 12 $ $ $19.00 to$20.99 2 2 4 $ $ $21.00 to$22.99 3 3 6 $ $ $23.00 to$24.99 2 2 $ $ $25.00 to$26.99 2 2 $ $ $27.00 to$28.99 1 ✓ 2 3 $ $ $29.00 to$30.99 1 ✓ 3 4 $ $ $31.00 and 8 14 22 $ $ higher 32. Has the recipient achieved all goals(see Question 29,30 and 31)and fulfilled all obligations stipulated in the agreement(Mark one.) ❑Yes ®No 411 32 A. Did recipient certify that it is participating in the E-Verify program located at www.uscis.gov and that all new employees hired on or after January 29,2008 are determined to be eligible for employment in the United States for all business subsidy agreements signed on or after January 29,2008. The recipient shall report to the City or government agency compliance throughout the term of the business subsidy(Mark one.) ❑Yes(certification has occurred) ❑No(certification has not occurred) Section 5: Recipients Failing to Fulfill Obligations (Do not complete this section(questions 33-39)if you completed it on another MBAF submitted to DEED. Please below note which MBAF includes the information.) 33.During the period January 1,2009 through December 31,2009,did your organization have any recipients who failed to report as required by Minn.Stat.§116J.993 and§116J.994? (Mark one.) ❑Yes(Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages if necessary.) • Name of recipient: • Type of subsidy or assistance(See Questions 24&25.): • Value of subsidy or assistance: ❑No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on August 1, 1999 through December 31,2009,that was required to be fulfilled by the time of this report? (Mark one.) ❑Yes(Complete the remainder of this section.) ❑No(Stop here and submit form to DEED.) Minnesota Business Assistance Form(02/10/10) Page 4 of 5 Dept.of Employment and Economic Development • For questions 35-39: Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. (Attach additional pages if necessary.) 35.Information on recipient and agreement: • Name of recipient in default: Street address of recipient: Type of subsidy or assistance: City/Zip code of recipient: Initial value of subsidy or assistance: Outstanding Value of subsidy or assistance: 36.Reason(s)for default(Mark all that apply.): ❑recipient ceased operation ❑recipient relocated to a different community ❑recipient was unable to fill vacant positions ❑other(Specify reason.): 37.To date,has the recipient fulfilled its repayment obligation? (Mark one.) ❑Yes ❑No,recipient has begun to repay the assistance. ❑No,recipient has not begun to repay the assistance. 38.Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) ❑Yes 0 N 39.Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Return your completed MBAF(s) by April 1,2013 EITHER • Mail To: Minnesota Business Assistance Report Minnesota Department of Employment and Economic Development—Analysis and Evaluation 1st National Bank Building 332 Minnesota Street, Suite E200 St.Paul,Minnesota 55101-1351 OR Fax To: (651)215-3841 Next year,please submit your information using our online form. • Minnesota Business Assistance Form(12/10/12) Page 5 of 5 Dept.of Employment and Economic Development PS! •�,$ y Department Employment �7 Y end Economic Development • nisata- 4-17-06 Please fill in date agreement signed(same as question 21) 2011 Minnesota Business Assistance Form for Non-JOBZ Projects ■ Use the Minnesota Business Assistance Form to report each business subsidy and financial assistance agreement signed from August 1, 1999 through December 31,2010 unless goals have been achieved and reported on a MBAF per Minn.Stat.§116J.993 to§116J.995. You may complete and submit this form online,instead of submitting a paper version. • The following government agencies must submit a MBAF: I)any local government/agency that signed a business subsidy agreement since January 1,2006,or represents a population of more than 2,500;2)all state government agencies authorized to provide business subsidies;3)business assistance that exceeds$150,000. • Executive Order 08-01 at h.ttp://www.governor.state.mn.us/priorities/eovernorsorders/executiveorders/PROD008598.html requires that recipients for all business subsidy agreements signed on or after January 29,2008,to comply with the Immigration Act of 1986,as amended. The recipient of business assistance must certify that it is currently participating in the E-Verify program located at httn://www.uscis.gov and that all newly hired employees hired on or after January 29,2008 are eligible for employment in the United States throughout the term of the business assistance. • DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance may not be awarded after June 1 of each year until a report has been submitted. • Questions? Call(651)259-7179. Information on where to mail or fax your completed MBAF(s)is on page 5. Section 1: (Grantor Information) 1.Name of grantor (funding entity): City of Elk River 2.Name of person completing this form: Catherine Mehelich • 3.Street address: 13065 Orono Parkway 4,City: Elk River 5.Zip Code: 55330 6.County: Sherburne 7.Phone number: 763-635-1041 8.Fax number: 763-635-1090 9.E-mail address: cehelich(a,ci.elk-river.mn.us 10.Please indicate who in your organization should receive the MBAF if different from the person in Question 2. 411 Name: Title: Street Address: City: Zip Code: Phone Number: Email Address: 11.Classification of grantor(Mark one.If grantor is entity created 12.Has your organization held a public hearing on and adopted by govt agency,please indicate affiliation. For example, a city criteria for awarding business subsidies in compliance with EDA would check "City government.) Mimi.Stat.§ 1167.994? (Mark one.) ®City government ❑ Yes,in 2011(attach criteria) ❑ Yes,in 2011 but have not yet adopted criteria ❑County government ® Yes,prior to 2011 ❑Regional government If Yes: Hearing Date: 5/15/06 Year Criteria Submitted: 2006 ❑State government ❑ No ❑Other(Please specify): ❑ Other(Please attach explanation.) 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31,2010 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.) ® Yes(Complete the remainder of the form unless goals have been achieved and ❑No(Stop here,go to section 5 on page 4.) reported in a previously filed MBAF per Minn.Stat.§116J.993 and§116J.994) Section 2: Recipient Information 14.Name of business or organization 15.Address where business subsidy or financial assistance receiving subsidy or financial assistance: The Bank of Elk River will be used Street address:630 Main Street City,State,Zip Code:Elk River.MN 55330 16.Does the recipient have a parent corporation? (Mark one.) • ❑Yes(Indicate name and address of parent corporation below. If more than one,indicate ultimate owner.) ®No Name of parent corporation: Street address: City,State,Zip Code: Minnesota Business Assistance Form(01/14/11) Page 1 of 5 Dept.of Employment and Economic Development 17.Industry of recipient's facility(Mark one.): 16 i ❑Manufacturing ❑Services ®Finance,Insurance,Real Estate ['Retail Trade ❑Wholesale Trade ❑Construction ❑Other(please specify): 18.Did the recipient relocate as a result of signing this agreement? (Mark one.) • ❑Yes(Indicate city and state of previous address and reason recipient did not complete this project at that address.) • City/State of previous address: • Reason project not completed at previous address: • Indicate total number of employees who ceased to be employed by recipient when the recipient relocated to become eligible for the business subsidy. # ®No(Go to Question 19.) 19,What would recipient have done without business subsidy or financial assistance? (Mark one): ❑Remain at previous location,but not expand ❑Remain at previous location but expand at the location ®Relocate to different Minnesota location ❑Relocated outside Minnesota ❑Other: 19A.Was the project a result of eminent domain? ❑Yes /:1 No Section 3: Agreement Information 20.Total dollar value of business subsidy or financial assistance 21.Date agreement signed(In addition to the agreement date, (Please separate value by type in Questions 24 and 25.): indicate any dates the agreement was amended.):April 17,2006 $300,000 22.Benefit date(Indicate the date the recipient receives the business subsidy. If the subsidy involves physical equipment,then the benefit date is the date the equipment is placed into service. If the business subsidy involves property improvements,the benefit date is when the improvements are finished or when the business occupies the property):September 13,2007 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question 25)required to be reported? (Mark one.) • El business subsidy ❑financial assistance 24.If the agreement provided a business subsidy,please indicate the 25.If the assistance was one of the four types of financial assistance, type(s)and total dollar value for each type. please indicate the type(s). j ❑not applicable,agreement provided financial assistance ®not applicable,agreement provided a business subsidy ❑loan(only principal) $ ❑assistance for property ❑grant(i.e.,forgivable loan) $ by contaminants $ ®tax abatement $300.000 ❑assistance for renovating building ❑TIF or other tax reduction or deferral* $ stock or bringing it up to code,and ❑guarantee or payment $ assistance provided for designated ❑contribution of property or infrastructure $ historic preservation districts,when ❑preferential use of governmental facilities $ 50 percent or less of total cost $ ❑land contribution $ ❑assistance for pollution control or ❑other(Specify subsidy type.): $ abatement $ ❑assistance for a TIF soils condition district $ 26.If the assistance included tax increment financing,please indicate 27.Are any other grantors providing a business subsidy or financial the type of TIF district. (Mark one.) assistance to the same project? (Mark one.) ®not applicable,assistance was not in the form of TIF ®Yes(Specify each grantor and the value of their assistance below; ❑redevelopment attach an additional sheet if necessary. ❑renewal and renovation ' ❑soils condition Grantor:Sherburne County Value($):300,000 , ❑economic development ❑mined underground space Grantor: Value($): ❑hazardous substance subdistrict 26 A.If assistance included JOBZ benefits,please indicate type of assistance. (Mark all that apply and please also submit the JOBZ ❑No • MBAF form.) ❑JOBZ ❑JOBZ AgZone ❑Biozone *For questions about TIF reporting requirements contact Arlin Waelti(651)296-7676 at the Minnesota Office of the State Auditor. Minnesota Business Assistance Form(01/14/11) Page 2 of 5 Dept.of Employment and Economic Development Ii Section 4: Goals and Public Purpose Identified in the Agreement 28.Minn.Stat.§116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all that apply.) • ❑Enhancing economic diversity ®Increasing tax base(cannot be only purpose) ❑Creating high-quality job growth ®Job retention ❑Other(please specify): ®Stabilizing the community 29.Indicate whether the agreement included the following types of goals,and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment date(s)for each goal.) Goals established? Target attainment dates All goals attained? (month&year) A)Specific wage and job goals to be attained within 2 years ®Yes ❑No September 2009 ❑Yes ®No B)Other job-creation and/or retention goals ❑Yes ❑No ❑Yes ❑No C)Other wage goals ❑Yes ❑No ❑Yes ❑No D)Goals other than wage and job goals ®Yes ❑No Complete building ®Yes ❑No (Please attach description of goals and progress toward attainment(if not documented in Questions 30 and 31.) 30. For each of the following wage categories,indicate the(new)job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance • Benefits No hourly wage- 63 63 $ $ level goal less than$7.00 $ $ $7.00 to$8.99 _ $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 $ $ $13.00 to$14.99 $ $ $15.00 to$16.99 20 20 $ $ $17.00 to$18.99 $ $19.00 to$20.99_ $ $ $21.00 to$22.99 $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 $ $ $29.00 to$30.99 $ $ $31.00 and $ $ higher Minnesota Business Assistance Form(01/14/11) Page 3 of 5 Dept.of Employment and Economic Development • 31. For each of the following wage categories,indicate the number of actual(new)jobs created and/or retained since the benefit date and the actual hourly value of any employer provided voluntary benefits for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week • within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits f less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 2 1 3 $ $ $11.00 to$12.99 1 2 3 $ $ $13.00 to$14.99 1 1 5 7 $ $ $15.00 to$16.99 3 6 9 $ $ $17.00 to$18.99 4 7 11 $ $ $19.00 to$20.99 2 1 3 $ $ $21.00 to$22.99 2 2 4 $ $ $23.00 to$24.99 1 1 $ $ $25.00 to$26.99 2 2 4 $ $ $27.00 to$28.99 1 1 $ $ $29.00 to$30.99 1 3 4 $ $ $31.00 and 12 2 11 25 $ $ higher 32. Has the recipient achieved all goals(see Question 29,30 and 31)and fulfilled all obligations stipulated in the agreement(Mark one.) ❑Yes 1:1 No 32 A. Did recipient certify that it is participating in the E-Verify program located at www.uscis.gov and that all new employees hired on or • after January 29,2008 are determined to be eligible for employment in the United States for all business subsidy agreements signed on or after January 29,2008. The recipient shall report to the City or government agency compliance throughout the term of the business subsidy(Mark one.) ❑Yes(certification has occurred) ❑No(certification has not occurred) Section 5: Recipients Failing to Fulfill Obligations (Do not complete this section(questions 33-39)ifyou completed it on another MBAF submitted to DEED. Please below note which MBAF includes the information.) 33.During the period January 1,2010 through December 31,2010,did your organization have any recipients who failed to report as required by Minn.Stat.§1161.993 and§116.1.994? (Mark one.) ❑Yes(Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages if necessary.) • Name of recipient: • Type of subsidy or assistance(See Questions 24&25.): • Value of subsidy or assistance: ❑No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on August I, 1999 through December 31,2010,that was required to be fulfilled by the time of this report? (Mark one.) ❑Yes(Complete the remainder of this section.) ❑No(Stop here and submit form to DEED.) Minnesota Business Assistance Form(01/14/11) Page 4 of 5 Dept.of Employment and Economic Development III I For questions 35-39: Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were 19 to be attained by the time of reporting. (Attach additional pages if necessary.) 35.Information on recipient and agreement: Name of recipient in default:The Bank of Elk River Type of subsidy or assistance:Tax Abatement • Street address of recipient:630 Main Street City/Zip code of recipient:Elk River 55330 Initial value of subsidy or assistance:$66,864.32 Outstanding Value of subsidy or assistance:$233,135.68 36.Reason(s)for default(Mark all that apply.): ❑recipient ceased operation ❑recipient relocated to a different community ❑recipient was unable to fill vacant positions ®other(Specify reason.): Economic conditions 37.To date,has the recipient fulfilled its repayment obligation? (Mark one.) ❑Yes ❑No,recipient has begun to repay the assistance. ®No,recipient has not begun to repay the assistance. 38.Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) ®Yes ❑No 39.Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Following a public hearing the City Council approved extension of the job/wage goals until September 13,2011. Return your completed MBAF(s) by April 1,2011 EITHER • Mail To: Minnesota Business Assistance Report Minnesota Department of Employment and Economic Development—Analysis and Evaluation 1 st National Bank Building 332 Minnesota Street, Suite E200 St.Paul,Minnesota 55101-1351 OR Fax To: (651)215-3841 Next year,please submit your information using our online form. Minnesota Business Assistance Form(01/14/11) Page 5 of 5 Dept.of Employment and Economic Development • • p s• �v t, Department et Employment f aadEconominDevalopmant F nI G oseta Please fill in date agreement signed(same as question 21) 2013 Minnesota Business Assistance Form for Non-JOBZ Projects • • Use the Minnesota Business Assistance Form to report each business subsidy and financial assistance agreement signed from August 1, 1999 through December 31,2012 unless goals have been achieved and reported on a MBAF per Minn.Stat.§116J.993 to§116J.995. You may complete and submit this form online,instead of submitting a paper version. ■ The following government agencies must submit a MBAF: 1)any local government/agency that signed a business subsidy agreement since January I,2008,or represents a population of more than 2,500;2)all state government agencies authorized to provide business subsidies;3)business assistance that exceeds$150,000. • DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance may not be awarded after June 1 of each year until a report has been submitted. • Questions? Call(651)259-7179. Information on where to mail or fax your completed MBAF(s)is on page 5. Section 1: (Grantor Information) 1.Name of grantor (funding entity): City of Elk River 2.Name of person completing this form: Clay Wilfahrt 3.Street address: 13065 Orono Parkway 4.City: Elk River 5.Zip Code: 55330 6.County: Sherburne 7.Phone number: 763.635.1000 8.Fax number: 763.635.1090 9.E-mail address: cwi ifahrt @elkri vetmn.gov 10.Please indicate who in your organization should receive the MBAF if different from the person in Question 2. Name: Title: Street Address: City: I Zip Code: Phone Number: Email Address: 11.Classification of grantor(Mark one.If grantor is entity created 12.Has your organization held a public hearing on and adopted S by gov't agency,please indicate affiliation. For example,a city EDA would check"City government.') criteria for awarding business subsidies in compliance with Minn.Stat.§ 116J.994? (Mark one.) City government ❑ Yes,in 2013(attach criteria) ❑ Yes,in 2013 but have not yet adopted criteria ❑County government ❑ Yes,prior to 2013 ❑Regional government If Yes: Hearing Date: Year Criteria Submitted: ❑State government ❑ No ❑Other(Please specify): ❑ Other(Please attach explanation.) 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31,2012 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.) ®Yes(Complete the remainder of the form unless goals have been achieved and ❑No(Stop here,go to section 5 on page 4.) reported in a previously filed MBAF per Minn.Stat.§116J.993 and§116J.994) Section 2: Recipient Information 14.Name of business or organization 15.Address where business subsidy or financial assistance receiving subsidy or financial assistance: Bank of Elk River will be used Street address:630 Main St NW City,State,Zip Code:Elk River,MN 55330 16.Does the recipient have a parent corporation? (Mark one.) ❑Yes(Indicate name and address of parent corporation below. If more than one,indicate ultimate owner.) ®No Name of parent corporation: Street address: City,State,Zip Code: • Minnesota Business Assistance Form(12/10/12) Page 1 of 5 Dept.of Employment and Economic Development 17.Industry of recipient's facility(Mark one.): a ❑Manufacturing ❑Services ®Finance,Insurance,Real Estate ❑Retail Trade ❑Wholesale Trade ❑Construction ❑Other(please specify): 18.Did the recipient relocate as a result of signing this agreement? (Mark one.) ❑Yes(Indicate city and state of previous address and reason recipient did not complete this project at that address.) • City/State of previous address: • Reason project not completed at previous address: • Indicate total number of employees who ceased to be employed by recipient when the recipient relocated to become eligible for the business subsidy. # ®No(Go to Question 19.) 19.What would recipient have done without business subsidy or financial assistance? (Mark one): ❑Remain at previous location,but not expand ❑Remain at previous location but expand at the location ®Relocate to different Minnesota location ❑Relocated outside Minnesota ❑Other: 19A.Was the project a result of eminent domain? ❑Yes ®No Section 3: Agreement Information 20.Total dollar value of business subsidy or financial assistance 21.Date agreement signed(In addition to the agreement date, (Please separate value by type in Questions 24 and 25.): indicate any dates the agreement was amended.):April 17,2006 300.000 22.Benefit date(Indicate the date the recipient receives the business subsidy. If the subsidy involves physical equipment,then the benefit date is the date the equipment is placed into service. If the business subsidy involves property improvements,the benefit date is when the improvements are finished or when the business occupies the property):September 13,2007 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question 25)required to be reported? (Mark one.) ®business subsidy ❑financial assistance 24.If the agreement provided a business subsidy,please indicate the 25.If the assistance was one of the four types of financial assistance, type(s)and total dollar value for each type. please indicate the type(s). ❑not applicable,agreement provided financial assistance ®not applicable,agreement provided a business subsidy ❑loan(only principal) $ ❑assistance for property ❑grant(i.e.,forgivable loan) $ by contaminants $ // tax abatement $300,000 ❑assistance for renovating building ❑TIF or other tax reduction or deferral* $ stock or bringing it up to code,and ❑guarantee or payment $ assistance provided for designated ❑contribution of property or infrastructure $ historic preservation districts,when ❑preferential use of governmental facilities $ 50 percent or less of total cost $ ❑land contribution $ ❑assistance for pollution control or ❑other(Specify subsidy type.): $ abatement $ ❑assistance for a TIF soils condition district $ 26.If the assistance included tax increment financing,please indicate 27.Are any other grantors providing a business subsidy or financial the type of TIF district. (Mark one.) assistance to the same project? (Mark one.) ®not applicable,assistance was not in the form of TIF ®Yes(Specify each grantor and the value of their assistance below; ❑redevelopment attach an additional sheet if necessary. ❑renewal and renovation ❑soils condition Grantor:Sherburne County Value($):300,000 ❑economic development ❑mined underground space Grantor: Value($): ❑hazardous substance subdistrict 26 A.If assistance included JOBZ benefits,please indicate type of assistance. (Mark all that apply and please also submit the JOBZ ❑No • MBAFform.) ❑JOBZ ❑JOBZ AgZone ❑Biozone *For questions about TIF reporting requirements contact Arlin Waelti(651)296-7676 at the Minnesota Office of the State Auditor. Minnesota Business Assistance Form(12/10/12) Page 2 of 5 Dept.of Employment and Economic Development as Section 4: Goals and Public Purpose Identified in the Agreement 28.Minn.Stat.§116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all that apply.) • ❑Enhancing economic diversity ►1 Increasing tax base(cannot be only purpose) ❑Creating high-quality job growth A/ Job retention ❑Other(please specify): ®Stabilizing the community 29.Indicate whether the agreement included the following types of goals,and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment date(s)for each goal.) Goals established? Target attainment dates All goals attained? (month&year) A)Specific wage and job goals to be attained within 2 years ®Yes ❑No ❑Yes ❑No B)Other job-creation and/or retention goals ❑Yes ❑No ❑Yes ❑No C)Other wage goals ❑Yes ❑No ❑Yes ❑No D)Goals other than wage and job goals ®Yes ❑No ❑Yes ❑No (Please attach description of goals and progress toward attainment(if not documented in Questions 30 and 31.) 30. For each of the following wage categories,indicate the(new)job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance • Benefits No hourly wage- 63 63 $ $ level goal less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 $ $ $13.00 to$14.99 $ $ $15.00 to$16.99 20 20 $ $ $17.00 to$18.99 $ $ $19.00 to$20.99 $ $ $21.00 to$22.99 $ $ $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 $ $ $29.00 to$30.99 $ $ $31.00 and $ $ higher • Minnesota Business Assistance Form(12/10/12) Page 3 of 5 Dept.of Employment and Economic Development rj�j 31. For each of the following wage categories,indicate the number of actual(new)jobs created and/or retained since the benefit date and " the actual hourly value of any employer provided voluntary benefits for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week 40 within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 $ $ $13.00 to$14.99 $ $ $15.00 to$16.99 $ $ $17.00 to$18.99 $ $ $19.00 to$20.99 $ $ $21.00 to$22.99 $ $ $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 $ $ $29.00 to$30.99 $ $ $31.00 and $ $ higher 32. Has the recipient achieved all goals(see Question 29,30 and 31)and fulfilled all obligations stipulated in the agreement(Mark one.) ❑Yes El No • Section 5: Recipients Failing to Fulfill Obligations (Do not complete this section(questions 33-39)if you completed it on another MBAF submitted to DEED. Please below note which MBAF includes the information.) 33.During the period January 1,2012 through December 31,2012,did your organization have any recipients who failed to report as required by Minn.Stat.*1161.993 and§1161.994? (Mark one.) ❑Yes(Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that recipient. Attach additional pages if necessary.) • Name of recipient: • Type of subsidy or assistance(See Questions 24&25.): • Value of subsidy or assistance: ®No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on August 1,1999 through December 31,2012,that was required to be fulfilled by the time of this report? (Mark one.) ❑Yes(Complete the remainder of this section.) ❑No(Stop here and submit form to DEED.) S Minnesota Business Assistance Form(12/10/12) Page 4 of 5 Dept.of Employment and Economic Development a4\ For questions 35-39: Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. (Attach additional pages if necessary.) 35.Information on recipient and agreement: Name of recipient in default: Type of subsidy or assistance: Street address of recipient: City/Zip code of recipient: Initial value of subsidy or assistance: Outstanding Value of subsidy or assistance: 36.Reason(s)for default(Mark all that apply.): ❑recipient ceased operation 0 recipient relocated to a different community ❑recipient was unable to fill vacant positions ❑other(Specify reason.): ti 37.To date,has the recipient fulfilled its repayment obligation? (Mark one.) ❑Yes ❑No,recipient has begun to repay the assistance. ❑No,recipient has not begun to repay the assistance, 38.Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) ❑Yes ❑No 39.Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Return your completed MBAF(s)by April 1,2010 EITHER • Mail To: Minnesota Business Assistance Report Minnesota Department of Employment and Economic Development—Analysis and Evaluation 1St National Bank Building 332 Minnesota Street,Suite E200 St.Paul,Minnesota 55101-1351 OR Fax To: (651)215-3841 Next year,please submit your information using our online form. Minnesota Business Assistance Form(02/10/10) Page 5 of 5 Dept.of Employment and Economic Development • • Page 25 State Deed Reports • Years reported: • 2008 • 2009 • 2010 • 2011 • 2013 Missing Years: • 2007 • 2012 Speaking with the state they stated that there is more than one way to read these following reports. It depends who is doing the reporting,do we include FT&PT,Just FT,or FTE?Also,what is the base for retention? It doesn't specify on the form.The State form is too broad and doesn't define these things,so different people will report in different ways.If there is a challenge,the State has to figure out the intent of the person doing the reporting.Retention is not defined on the State report. So does retention mean only FT at a certain wage level?Include both FT&PT?Does retention mean only that facility or all branches?Etc. The State has no way of knowing the intent for sure, even if they look at the Business Subsidy Agreement because the BSA is often times too vague and doesn't always address the Retention issue. • Bill LaVigne brought up the point that each year the reporting was completed,a different staff member did the reporting. • Minnesota Business Assistance Form-View Form Page 1 of 4 a2i • _ _ _ . _aidiwete,s-ok DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT Section 1 Grantor Information Date submitted:516/2008 12:42:00 PM Note:Modified by DEED on 6113!2008 10:43:01 AM 1.Name of grantor(funding entity):Elk River,City of 2.Name of person completing this form:Annie Deckert 3.Street Address:13065 Orono Parkway 4.City:Elk River 5.Zip code:55330 6.County:Sherburne 7.Phone number:7636351042 8.Fax number:7636351090 9.E-mail address:adeckert @ci.elk-river.mn.us 10.Is the person who should receive the MBAF different from the person in Question 2?No 410 11.Classification of grantor(if grantor is entity created by government agency,please indicate affiliation.For example,a city EDA would check"City Government."):City government 12.Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with Minn.Stat. 116J.994?:Yes,prior to 2004 Hearing Date:5/15/2006 Year Criteria Submitted:2006 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1,1888 through December 31,2006,unless goals have been achieved and reported in a previous filed MBAF that is required to be reported under Minn. Stat.1_1118J.993 and]116J.994?:Yes Section 2 Recipient information 14.Name of business or organization receiving subsidy or financial assistance:The Bank of Elk River 15.Address where business subsidy or financial assistance will be used. Street Address:630 Main Street City:Elk River State:MN Zip Code:55330 16.Does the recipient have a parent corporation?:No 17.Industry of recipient's facility:Finance,Insurance,Real Estate 18.Did the recipient relocate as a result of signing this agreement?No 19.What would the recipient have done without business subsidy or financial assistance?:Relocate to different Minnesota location 19k Was the project a result of eminent domain?No Section 3-Agreement Information 20.Total dollar value of business subsidy or financial assistance:$300000 • 21.Date agreement signed:4/17/2006 22.Benefit date(Indicate the date the recipient receives the business subsidy or improvements were finished,equipment was placed into https://apps.deed.state.mn.us/Annual MBAF Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 2 of 4 �1 service,or the recipient occupied the property,whichever is earlier.):9/13/2007 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question#25)required to be reported?:Business subsidy 24.If the agreement provided a business subsidy,please indicate the type(s)by entering a total dollar value for each type: Tax abatement vaiue:$300000 26.If the assistance included tax increment financing,please indicate the type of TIF district: 27.Are any other grantors providing a business subsidy or financial assistance to the same project?:Yes Grantor 1:Sherburne County Value of the agreement:$300000 Section 4-Goals and Public Purpose identified in the Agreement 28.Minn.Stat.1116J.994 requires that business subsidy and financial assistance agreements state a public purpose.Which of the following public purposes were stated in the agreement?(Check all that apply.): Creating high-quality job growth 29.The agreement must have included at least one of the following types of goats.Indicate the Target Attainment Date and whether ALL goals were attained for any goal included in your agreement.: Type of Goals Target Attainment ALL Goals Dates attained? Specific wage and job goals to be attained within 9/1/2009 No 2 years 30.For each of the following wage categories,indicate the job creation goals and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those jobs.(Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full-and part-time positions.) No hourly wage-level goal: 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention ,, • Hourly Wage less than$7.00(excluding benefits): r��Jr��,Y ) �U{l 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention -'O � l Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$15.00 to$16.99(excluding benefits): 20-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation . 0-Job Retention Hourly Wage of$21.00 to$22.99(excluding benefits): 0-Full time Job Creation https://apps.deed.state.mn.us/Annual MBAF Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 3 of 4 fl D-Part-time Job Creation • 0-Job Retention Hourly Wage of$23.00 to$24.99(excluding benefits): 0-Full time Job Creation D-Part-time Job Creation 0-Job Retention Hourly Wage of$25.00 to$26.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$27.00 to$26.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.98(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 31.For each of the following wage categories,indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided benefits for those jobs.(Only indicate Job Creation in full-time equivalents if you are unable to separate goals by full-and part-time positions.) Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation y 0-Job Retention Creation ' \-Qx- )100 - • • 0•Job Retention 1�( \ V Hourly Wage of$9.00 to$10.99(excluding benefits): 0 Full time Job Creation w i 0-Part-time Job Creation RAl� )4n1 I 0•Job Retention tttl Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$16.00 end$16.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): D-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$21.00 to$22.99(excluding benefits): 0-Full time Jolt Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$23.00 to$24.99(excluding benefits): • 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention https://apps.deed.state.mn.us/Annual MBAF Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 4 of 4 Hourly Wage of$25.00 to$26.99(excluding benefits): • 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$27.00 to$28.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 10-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 32.Has the recipient achieved all goals and fulfilled all obligations stipulated in the agreement?:No Section 6-Recipients Failing to Fulfill Obligations 33.During the period January 1,2003 through December 31,2006,did your organization have any recipients who failed to report as required by Minn.Stat.D116J,993 and 7116J.994?No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1,2006,that were required to be fulfilled by the time of this report?No Return to Minnesota Business Assistance Report Listing ®2013 Minnesota Department of Employment and Economic Development • • • S https://apps.deed.state.mn.us/Annual_MBAF Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 1 of 4 30 r_ _ - _ _ _ _ DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT Section 1 Grantor Information. Date submitted:51191200910:62:00 AM Note:Modified by DEED on 9111/2009 11:49:55 AM 1.Name of grantor(funding entity):Elk River,City of 2.Name of person completing this form:Catherine Mehelich 3.Street Address:13066 Orono Parkway 4.City:Elk River 5.Zip code:65330 6.County:Sherburne 7.Phone number:7636351041 8.Fax number:7636351090 9.E-mail address:cmehelich @ci.elk-river,mn.us 10.Is the person who should receive the MBAF different from the person in Question 2?No 11.Classification of grantor(If grantor is entity created by government agency,please Indicate affiliation.For example,a city EDA would check"City Government."):City government 12.Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with)Minn.Stat, :116J.994?:Yes,prior to 2004 Hearing Date:5115/2006 Year Criteria Submitted:2006 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1,1999 through December 31,2006,unless goals have been achieved and reported in a previous filed MBAF that Is required to be reported under Minn. Stat.0116J.993 and J116J.994?:Yes Section 2 Recipient Information 14.Name of business or organization receiving subsidy or financial assistance:The Bank of Elk River 15.Address where business subsidy or financial assistance will be used. Street Address:630 Main St City:Elk River State:MN Zip Code:55330 16.Does the recipient have a parent corporation?:No 17.Industry of recipients facility:Finance,Insurance,Real Estate 18.Did the recipient relocate as a result of signing this agreement?No 19.What would the recipient have done without business subsidy or financial assistance?:Relocate to different Minnesota location 19A.Was the project a result of eminent domain?No Section 3-Agreement Information 20.Total dollar value of business subsidy or financial assistance:$300000 21.Date agreement signed:4/17/2006 22.Benefit date(Indicate the date the recipient receives the business subsidy or improvements were finished,equipment was placed into https://apps.deed.state.mn.us/Annual_MBAF_Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form -View Form Page 2 of 4 31 service,or the recipient occupied the property,whichever is earlier.):9113/2007 4111 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question#25)required to be reported?:Business subsidy 24.If the agreement provided a business subsidy,please indicate the type(s)by entering a total dollar value for each type: Tax abatement value:$300000 26.If the assistance included tax increment financing,please indicate the type of TIF district: 27.Are any other grantors providing a business subsidy or financial assistance to the same project?:Yes Grantor 1:Sherburne County Value of the egreement$300000 Section 4-Goals and Public Purpose Identified in the Agreement 28.Minn.Stat. 116J.094 requires that business subsidy and financial assistance agreements state a public purpose.Which of the • following public purposes were stated in the agreement?(Check all that apply.): Creating high-quality Job growth Job retention Increasing tax base(cannot be only purpose) 29.The agreement must have included at least one of the following types of goals.Indicate the Target Attainment Date and whether ALL goats were attained for any goal included in your agreement. Type of Goals Target Attainment ALL Goals Dates attained? Specific wage and job goals to be attained within 9/1/2009 No 2 years Other goals other than wage and job goals 9/1/2007 Yes 30.For each of the following wage categories,indicate the job creation goals and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those jobs.(Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full-and part-time positions.) • No hourly wage-level goal: 0-Full time Job Creation 0-Part-time Job Creation 63-Job Retention Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation • 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of 015.00 to$10.90(excluding benefits): 20-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 1 Hourly Wage of$17.00 to$18.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation https://apps.deed.state.mn.us/Annual MBAF Reports/fetch_report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 3 of 4 32 0-Job Retention 411 Hourly Wage of$21.00 to$22.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$23.00 to$24.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$25.00 to$26.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$27.00 to$26.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 31.For each of the following wage categories,indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided benefits for those jobs.(Only indicate Job Creation in full-time equivalents if you are unable to separate goals by full-and part-time positions.) • Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention X11 +-'4 Q - Hourly Wage of$9:00 to$10.99(excluding benefits): 0-Full time Job Creation 1-Part-time Job Creation VVV U i\u'P fl\_ - 1 1.Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 1-Full time Job Creation 0-Part-time Job Creation 3-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 1"l� �( 11 58 1.Full time Job Creation 1-Part-time Job Creation 8-Job Retention • Hourly Wage of$15.00 and$16.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 7-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 1-Full time Job Creation 0-Part-time Job Creation 9-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 1-Full time Job Creation 0-Part-time Job Creation 5-Job Retention Hourly Wage of$21.00 to$22.99(excluding benefits): 2-Full time Job Creation 0-Part-time Job Creation • 4-Job Retention Hourly Wage of$23.00 to$24.99(excluding benefits): https://apps.deed.state.mn.us/Annual MBAF_Reports/fetch_report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 4 of 4 o-Full time Job Creation • 0•Part-time Job Creation 1-.lob Retention Hourly Wage of$25.00 to$26.89(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 2•Job Retention Hourly Wage of$27.00 to$28.99(excluding benefits): 1-Full time Job Creation 0-Part-time Job Creation 1-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 3-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 1-Full time Job Creation 0•Part-time Job Creation 14-Job Retention 32.Has the recipient achieved all goals and fulfilled all obligations stipulated in the agreement?:No Section 5-Recipients Failing to Fulfill Obligations 33.During the period January 1,2003 through December 31,2006.did your organization have any recipients who failed to report as required by Minn.Stat.0 116J.993 and El116J.994?No 34.Did your organization have any recipients who tailed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1,2006,that were required to be fulfilled by the time of this report?No Return to Minnesota Business Assistance Report Listing • ©2013 Minnesota Department of Employment and Economic Development • • https://apps.deed.state.mn.us/Annual M$AF Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 1 of 4 34 • ) i ok - - .711 _ _ _ _ DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVEOP ENI Section 1 Grantor Information Date submitted:4/15/2010 8:51:00 AM Note:Modified by DEED on 7/1512010 9:54:11 AM 1.Name of grantor(funding entity):Elk River City of 2.Name of person completing this form:Catherine Mehelich 3.Street Address:13065 Orono Parkway 4.City:Elk River 5.Zip code:55330 6.County:Sherburne 7.Phone number:7636351041 9.E-mail address:cmeheiich @cielk-river.mn.us 10.Is the person who should receive the MBAF different from the person in Question 2?No 11.Classification of grantor(If grantor is entity created by government agency,please indicate affiliation,For example,a city EDA would check"City Government"):City government 12.Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with Minn,Stat, 116J.994?:Yes,prior to 2004 Hearing Date:5/16/2006 Year Criteria Submitted:2006 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1,1999 through December 31,2006,unless goals have been achieved and reported in a previous filed MBAF that is required to be reported under Minn. Stat.0116J,993 and J116.1.994?:Yes Section 2 Recipient Information 14.Name of business or organization receiving subsidy or financial assistance:Bank of Elk River 15.Address where business subsidy or financial assistance will be used. Street Address:630 Main St City:Elk River State:MN Zip Code:55330 16.Does the recipient have a parent corporation?:No 17.Industry of recipient's facility:Finance,Insurance,Real Estate 18.Did the recipient relocate as a result of signing this agreement?No 19.What would the recipient have done without business subsidy or financial assistance?:Relocate to different Minnesota location 19A.Was the project a result of eminent domain?No Section 3-Agreement Information 20.Total dollar value of business subsidy or financial assistance:$300000 21.Date agreement signed:4/17/2006 • 22.Benefit date(Indicate the date the recipient receives the business subsidy or improvements were finished,equipment was placed into service,or the recipient occupied the property,whichever is earlier.):9/13/2007 https://apps,deed.state.nui.us/Annual_MBAF_Reports/fetch_report.asp 11/7/2013 Minnesota Business Assistance Form -View Form Page 2 of 4 '55 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question#25)required to be 4111 reported?:Business subsidy 24.If the agreement provided a business subsidy,please indicate the type(s)by entering a total dollar value for each type: Tax abatement value:$300000 26.If the assistance included tax increment financing,please indicate the type of TIF district: 27.Are any other grantors providing a business subsidy or financial assistance to the same project?:Yes Grantor 1:Sherburne County Value of the agreement:$300000 Section 4-Goals and Public Purpose Identified in the Agreement 28.Minn.Stat. 116J.994 requires that business subsidy and financial assistance agreements state a public purpose.Which of the following public purposes were stated in the agreement?(Check all that apply.): Job retention • Stabilizing the community Increasing tax base(cannot be only purpose) 29.The agreement must have included at least one of the following types of goals.Indicate the Target Attainment Date and whether ALL goals were attained for any goal included in your agreement: Type of Goals Target Attainment ALL Goals Dates attained? Specific wage and job goals to be attained within 9/1/2009 No 2 years Other goals other than wage and job goals 9/1/2007 Yes 30.For each of the following wage categories,indicate the job creation goals and/or retention goals stated In the agreement and the average hourly value of any employer-provided benefits goals for those jobs.(Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full-and part-time positions.) No hourly wage-level goal: 0-Full time Job Creation 0-Part-time Job Creation 03-Job Retention Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 4-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation • 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$15.00 to$16.99(excluding benefits): 20-Full time Job Creation 0-Part-time job Creation 0-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention https://apps.deed.state.mn.us/Annual MBAF Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 3 of 4 3v) Hourly Wage of$21.00 to$22.99(excluding benefits): 0.Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$23.00 to$24.98(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$25.00 to$26.98(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$27.00 10$28.99(excluding benefits): 0•Full time Job Creation 0•Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 31.For each of the following wage categories,indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided benefits for those jobs.(Only indicate Job Creation in full-time equivalents if you are unable to separate goals by full-and part-time positions.) Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): • 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): F \) I n __ e - JO 2-Full time Jab Graafian 1 ^'rl Y r) 0-Part-time Job Creation 1-Job Retention 1 �� F( -�a ve. e�u;1/Q Q � Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 3•Job Retention :Tab e VC1410( 5 LI Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 6-Job Retention Hourly Wage of$15.00 and$16.99(excluding benefits): 1-Full time Job Creation 0-Part-time Job Creation 8-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): • 4-Full time Job Creation 0-Part-time Job Creation 8-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 2-Full time Job Creation 0-Part-time Job Creation 2-Job Retention Hourly Wage of$21.00 to$22.98(excluding benefits): 3-Full time Job Creation 0-Part-time Job Creation 3-Job Retention • Hourly Wage of$23.00 to$24.98(excluding benefits): 0-Full time Job Creation • 0-Part-time Job Creation 2-Job Retention https://apps.deed.state.mn.us/Annual MBAF_Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 4 of 4 3 7 Hourly Wage of$25.00 to$26.99(excluding benefits): So-Full time Job Creation D-Part-time Job Creation 2-Job Retention Hourly Wage of 827 00 to$$28.99(excluding benefits): 1-Full time Job Creation D-Part-time Job Creation 2-Job Retention Hourly Wage of 829 00 to$30.99(excluding benefits): 1-Full time Job Creation 0-Part-time Job Creation 3-Job Retention Hourly Wage of sal OD and higher(excluding benefits): 8-Full time Job Creation 0-Part-time Job Creation 14-Job Retention 32.Has the recipient achieved all goals and fulfilled all obligations stipulated in the agreement?:No Section 6-Recipients Failing to Fulfill Obligations 33.During the period January 1,2003 through December 31,2006,did your organization have any recipients who failed to report as required by Minn.Stat.n116J.993 and 91163,994?No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1,2006,that were required to be fulfilled by the time of this report?Yes Section 6-Recipients Falling to Fulfill Obligations Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. 35.Information on recipient and agreement: Name of recipient in default:The Bank of Elk River Type of subsidy or assistance:Tax Abatement Initial value of subsidy or assistance:300000 Street Address:630 Main Street City:Elk River State:MN Zip Code:55330 Outstanding value of subsidy or assistance:267079 36.Has the recipient achieved all goals(see Questions 29,30,and 31)and fulfilled all obligations stipulated in the agreement?Other If other,please specify:Economic conditions 37.To date,has the recipient fulfilled its repayment obligation?No,recipient has not begun to repay the assistance 38.Has the agreement been amended to extend the recipients deadline for fulfilling its obligations?Yes 39.Describe the steps being taken to bring recipient into compliance or recoup the subsidy?:Following a public hearing,the City Council approved extension of lob wage goals until September 2011. Return to Minnesota Business Assistance Report Listing ©2013 Minnesota Department of Employment and Economic Development r https://apps.deed.state.mn.us/Annual_MBAF_Reports/fetch report.asp 11/7/2013 Minnesota Business Assistance Form-View Form Page 1 of 6 3( _X' Minnesota Department of Employment and Economic Development Section 1 Grantor Information Date submitted:4/6/2011 10:25:00 AM Note:Modified by DEED on 9/28/2011 11:30:00 AM 1. Name of grantor(funding entity):Elk River,City of 2.Name of person completing this form:Catherine Mehelich 3.Street Address:13065 Orono Parkway 4.City: Elk River 5.Zip code:55330 6.County:Sherburne • 7.Phone number:7636351041 9.E-mail address:cmehelich @ci.elk-river.mn.us 10. Is the person who should receive the MBAF different from the person in Question 2?No 11.Classification of grantor(If grantor is entity created by government agency,please indicate affiliation.For example,a city EDA would check"City Government."):City government 12.Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with Minn.Stat. ❑116J.994?:Yes,prior to 2004 Hearing Date:5/1512006 Year Criteria Submitted:2006 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31,2006, unless goals have been achieved and reported in a previous filed MBAF that is required to be reported under Minn.Stat. 0116J.993 and ❑116J.994?:Yes Section 2 Recipient Information 14.Name of business or organization receiving subsidy or financial assistance:The Bank of Elk River 15.Address where business subsidy or financial assistance will be used. Street Address:630 Main St • City:Elk River State:MN Zip Code:55330 file://C:\Documents and Settings\cknoof\Desktop\DEED09.28.2011.htm 12/2/2013 Minnesota Business Assistance Form-View Form Page 2 of 6 39 16.Does the recipient have a parent corporation?: No 17.►ndustry of recipient's facility: Finance,Insurance, Real Estate 18.Did the recipient relocate as a result of signing this agreement?No 19.What would the recipient have done without business subsidy or financial assistance?: Relocate to different Minnesota location 19A.Was the project a result of eminent domain?No Section 3-Agreement Information 20.Total dollar value of business subsidy or financial assistance:$300000 21. Date agreement signed:4/17/2006 22.Benefit date(Indicate the date the recipient receives the business subsidy or improvements were finished,equipment was placed into service,or the recipient occupied the property,whichever is earlier.):9/13/2007 23.Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question#25)required to be reported?:Business subsidy 24.If the agreement provided a business subsidy,please indicate the type(s)by entering a total dollar value for each type: Tax abatement value:$300000 26. If the assistance included tax increment financing,please indicate the type of TIF district: 27.Are any other grantors providing a business subsidy or financial assistance to the same project?:Yes Grantor 1:Sherburne County Value of the agreement:$300000 Section 4-Goals and Public Purpose Identified in the Agreement 28.Minn.Stat. :_116J.994 requires that business subsidy and financial assistance agreements state a public purpose.Which of the following public purposes were stated in the agreement?(Check all that apply.): r. Job retention Stabilizing the community Increasing tax base(cannot be only purpose) 29.The agreement must have included at least one of the following types of goals.Indicate the Target Attainment Date and whether ALL goals were attained for any goal included in your agreement.: Type of Goals Target ALL Goal Attainment Dates attained? Specific wage and job goals to 9/1/2011 No be attained within 2 years Other goals other than wage 9/1/2007 Yes and job goals • 3o.For each of the following wage categories,indicate the job creation goals and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for file://C:\Documents and Settings\cknoof\Desktop\DEED09.28.2011.htm 12/2/2013 Minnesota Business Assistance Form-View Form Page 3 of 6 0 those jobs.(Only indicate job creation goals in full-time equivalents if you are unable to separate • goals by full-and part-time positions.) No hourly wage-level goal: 0-Full time Job Creation 0-Part-time Job Creation 63-Job Retention Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation • 0-Job Retention Hourly Wage of$15.00 to$16.99(excluding benefits): 20-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$21.00 to$22.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wace of S23.00 to$24.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$25.00 to S26.99(excluding benefits): 0-Full time Job Creation • 0-Part-time Job Creation 0-Job Retention file://C:\Documents and Settings\cknoof Desktop\DEED09.28.2011.htm 12/2/2013 Minnesota Business Assistance Form-View Form Page 4 of 6 9) Hourly Wage of$27.00 to$28.99(excluding benefits): 0-Full time Job Creation Q-Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 31.For each of the following wage categories,indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided benefits for . those jobs.(Only indicate Job Creation in full-time equivalents if you are unable to separate goals by full-and part-time positions.) Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation C-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$9.00 to$10.99(excluding benefits): 2-Full time Job Creation 1 -Part-time Job Creation 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 1 -Full time Job Creation 0-Part-time Job Creation 2-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 1-Full time Job Creation 1 -Part-time Job Creation 5-Job Retention Hourly Wage of$15.00 and$16.99(excluding benefits): 3-Full time Job Creation C-Part-time Job Creation 6-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 4-Full time Job Creation C-Part-time Job Creation 7-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 2-Full time Job Creation 0-Part-time Job Creation 1-Job Retention • Hourly Wage of$21.00 to$22.99(excluding benefits): 2-Full time Job Creation ©-Part-time Job Creation file://C:\Documents and Settings\cknoof\Desktop\DEED09.28.2011.htm 12/2/2013 Minnesota Business Assistance Form-View Form Page 5 of 6 142. } 2-Job Retention Hourly Wage of$23.00 to$24.99(excluding benefits): 1 -Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$25.00 to$26.99(excluding benefits): 2-Full time Job Creation 0-Part-time Job Creation 2-Job Retention Hourly Wage of$27.00 to$28.99(excluding benefits): 1 -Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 1 -Full time Job Creation 0-Part-time Job Creation 3-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 12-Full time Job Creation 2-Part-time Job Creation 11 -Job Retention 32. Has the recipient achieved all goals and fulfilled all obligations stipulated in the agreement?: No Section 5-Recipients Failing to Fulfill Obligations • 33.During the period January 1,2003 through December 31,2006,did your organization have any recipients who failed to report as required by Minn.Stat. 0116J.993 and 01161994?No 34. Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1,2006,that were required to be fulfilled by the time of this report?Yes Section 5-Recipients Failing to Fulfill Obligations Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. 35.Information on recipient and agreement: Name of recipient in default:The Bank of Elk River Type of subsidy or assistance:Tax Abatement Initial value of subsidy or assistance:66864 Street Address:630 Main St City:Elk River State:MN Zip Code:55330 Outstanding value of subsidy or assistance:23.3136 • 36.Has the recipient achieved all Goals(see Questions 29,30,and 31)and fufiiled all obligations file://C:\Documents and Settings\cknooflDesktop\DEED09.28.2011.htm 12/2/2013 Minnesota Business Assistance Form-View Form Page 6 of 6 113 stipulated in the agreement?Other If other,please specify:economic conditions 37.To date, has the recipient fulfilled its repayment obligation?No,recipient has not begun to repay the assistance 38. Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? Yes 39. Describe the steps being taken to bring recipient into compliance or recoup the subsidy?: following a public hearing the city council approved extension of the job wage goals until Sept 13,2011 Return to Minnesota Business Assistance Report Listing ©2013 Minnesota Department of Employment and Economic Development 410 • file://C:\Documents and Settings\cknoof\Desktop\DEED09.28.2011.htm 12/2/2013 Minnesota Business Assistance Fonn-View Form Page 1 of 4H • • OW C DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT -, ' �m.rf ,b s'- t:sE-s3-:`..5�;.,. -- 4.r..:,_ 5" ;:-,, a : `- .- Section 1 Grantor Information Date submitted:5/22/2013 10:44:00 AM Note:Modified by DEED on 5128/2013 3:34:41 PM 1.Name of grantor(funding entity):Elk River,City of 2.Name of person completing this form:Clay Wilfahrt 3.Street Address:13065 Orono Parkway 4.City:Elk River 5.Zip code:55330 6.County:Sherburne 7.Phone number:7636351041 10.Is the person who should receive the MBAF different from the person in Question 2?No 11.Classification of grantor(if grantor is entity created by government agency,please indicate affiliation.For example,a city EDA would check"City Government."):City government 12.Has your organization held a public hearing on and adopted criteria for awarding business subsidies in compliance with Minn.Stat, • 0116J.894?:Yes,prior to 2004 Hearing Date:5/15/2006 Year Criteria Submitted:2006 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1,1999 through December 31,2006,unless goals have been achieved and reported in a previous filed MBAF that is required to be reported under Minn, Stat.n116J,993 and 0116J.994?:Yes Section 2 Recipient Information 14.Name of business or organization receiving subsidy or financial assistance:Bank of Elk River 15.Address where business subsidy or financial assistance will be used. Street Address:630 Main Street NW City:Elk River State:MN . Zip Code:55330 16.Does the recipient have a parent corporation?:No 17.Industry of recipient's facility:Finance,Insurance,Real Estate 18.Did the recipient relocate as a result of signing this agreement?No 19.What would the recipient have done without business subsidy or financial assistance?:Relocate to different Minnesota location 19A.Was the project a result of eminent domain?No Section 3-Agreement Information 20.Total dollar value of business subsidy or financial assistance:$300000 21.Date agreement signed:4/17/2006 22.Benefit date(Indicate the date the recipient receives the business subsidy or improvements were finished,equipment was placed Into service,or the recipient occupied the property,whichever is earlier.):9/13/2007 • 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question#25)required to be reported?:Business subsidy https://apps.deed.state.mn.us/Annual MBAF_Reports/fetch report.asp 12/2/2013 Minnesota Business Assistance Form-View Form Page 2 of 4 '45 • 24.If the agreement provided a business subsidy,please indicate the type(s)by entering a total dollar value for each type: • Tax abatement value:$300000 26.If the assistance included tax increment financing,please indicate the type of TIF district: 27.Are any other grantors providing a business subsidy or financial assistance to the same project?:Yes Grantor 1:Sherburne County Value of the agreement:$300000 Section 4-Goals and Public Purpose Identified in the Agreement 2B.Minn.Stat.n116J.994 requires that business subsidy and financial assistance agreements state a public purpose.Which of the following public purposes were stated In the agreement?(Check all that apply.): Job retention Stabilizing the community Increasing tax base(cannot be only purpose) 29.The agreement must have Included at least one of the following types of goals.Indicate the Target Attainment Date and whether ALL goals were attained for any goal Included in your agreement.: Type of Goals Target Attainment ALL Goals Dates attained? Specific wage and job goals to be attained within 9/1/2009 No 2 years Other goals other than wage and job goals 9/1/2009 Yes 30.For each of the following wage categories,Indicate the job creation goals and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those Jobs.(Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full-and part-time positions.) No hourly wage-level goal: 0-Full time Job Creation 0-Part-time Job Creation 63-Job Retention Hourly Wage less than$7.00(excluding benefits): • 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): ' 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$15.00 to$16.99(excluding benefits): 20-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$21.00 to$22.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention https://apps.deed.state.mn.us/Annual MBAF Reports/fetch report.asp 12/2/2013 • • Minnesota Business Assistance Form-View Form Page 3 of 4 thp Hourly Wage of$23.00 to$24.99(excluding benefits): • 0-Full time Job Creation 0•Part-time Job Creation 0•Job Retention Hourly Wage of$25.00 to$26.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0•Job Retention Hourly Wage of$27.00 to$28.99(excluding benefits): 0-Full time Job Creation 0•Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 31.For each of the following wage categories,Indicate the number of actual jobs created and/or retained since the benefit date and the actual hourly value of any employer-provided benefits for those jobs.(Only indicate Job Creation in full-time equivalents if you are unable to separate goals by full-and part-time positions.) Hourly Wage less than$7.00(excluding benefits): 0-Full time Job Creation 0-Part•time Job Creation 63-Job Retention Hourly Wage of$7.00 to$8.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$9.00 to$10.99(excluding benefits): • 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$11.00 to$12.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$13.00 to$14.99(excluding benefits): 0•Full time Job Creation 0-Part•time Job Creation 0-Job Retention Hourly Wage of$15.00 and$16.99(excluding benefits): 4-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$17.00 to$18.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$19.00 to$20.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$21.00 to$22.99(excluding benefits): 0•Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$23.00 to$24.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention • Hourly Wage of$25.00 to$26.99(excluding benefits): 0•Full time Job Creation D-Part-time Job Creation 0-Job Retention https://apps.deed.state.inn.us/Annual MBAF_Reports/fetch report.asp 12/2/2013 Minnesota Business Assistance Form-View Form Page 4 of 4 47 Hourly Wage of$27.00 to$28.99(excluding benefits): 0-Full time Job Creation So-Part-time Job Creation 0-Job Retention Hourly Wage of$29.00 to$30.99(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention Hourly Wage of$31.00 and higher(excluding benefits): 0-Full time Job Creation 0-Part-time Job Creation 0-Job Retention 32.Has the recipient achieved all goals and fulfilled all obligations stipulated in the agreement?:No Section 5-Recipients Failing to Fulfill Obligations 33.During the period January 1,2003 through December 31,2006,did your organization have any recipients who failed to report as required by Minn.Stat.D116J,993 and 0116J.994?No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1,2006,that were required to be fulfilled by the time of this report?Yes Section 5-Recipients Failing to Fulfill Obligations Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. • 35.Information on recipient and agreement Name of recipient In default:Bank of Elk River Type of subsidy or assistance:Tax Abatement Initial value of subsidy or assistance:300000 • Street Address:630 Main St City:Elk River State:MN Zip Code:55330 Outstanding value of subsidy or assistance:185537 36.Has the recipient achieved all goals(see Questions 29,30,and 31)and fulfilled all obligations stipulated in the agreement?Other If other,please specify:Restructured business and failed to create new employees 37.To date,has the recipient fulfilled Its repayment obligation?Yes 38.Has the agreement been amended to extend the recipient's deadline for fulfilling Its obligations?Yes 39.Describe the steps being taken to bring recipient into compliance or recoup the subsidy?:The Bank was hit hard by the housing crisis.They are working to hire new employees and to come into compliance in 2013.The EDA granted them an extension until September of 2013. Return to Minnesota Business Assistance Report Listino ©2013 Minnesota Department of Employment and Economic Development • https://apps.deed.state.mn.us/Ammal_MBAF_Reports/fetch report.asp 12/2/2013 • caYof Re uest for Action El q River To Item Number EDA Finance Committee 2.2 Agenda Section Meeting Date Prepared by General Business November 5,2013 Brian Beeman,Director of Economic Development Item Description Reviewed by Bank of Elk River Business Subsidy Agreement Tax Jeremy Barnhart,Deputy Director,CODD Abatement Default Reviewed by Action Requested 1) Recommend that the EDA amend the Business Subsidy Agreement. 2) Consider terms for Bank of Elk River's repayment of Tax Abatement to the city for the portion of unmet wage and job goals as per the Business Subsidy Agreement and make recommendation to the EDA. Background/Discussion In 2006 The Bank of Elk River was provided a tax abatement for renovation of its existing facility and the construction of an approximately 20,000 square foot expansion.As part of the tax abatement and • Business Subsidy Agreement between the City and The Bank of Elk River,certain job goals were outlined which, falls under the Business Subsidy Law,Minnesota Statutes,Section 116J.993 through 1161995. In cooperation from the State DEED office,EDD staff,and their attorney,it has been determined that The Bank of Elk River has not met its wage and job goals as specified in the Business Subsidy agreement since it was signed April 17,2006.The EDA allowed two extensions due to extenuating circumstances caused by a weak economy and reorganization.The last extension expired September 2013. However,since the City Council passed the second extension in November 2011 instead of in September,the State allowed the City to use November 2013 as the deadline for the second extension.The bank provided their most current wage,job,and job retention goals on November 1,2013. . At the time the agreement was signed,the bank had 63 employees and the wage and job goals required that the bank create 20 additional full time employees at$15.00 per hour within two years of the signing of the agreement as per the State DEED's comments and as specified in the Business Subsidy Agreement.This means that a total of 83 jobs must be retained.Currently,the bank has created 14 of the 20 jobs which are tied to the Tax Abatement project,for a total of 61 jobs retained since 2006. EDA staff has contacted the State to determine the next course of action.The State is of the understanding that no further extensions are allowed,and it is questionable whether the Tax Abatement and Business Subsidy Agreement can be amended. The EDA attorney has determined that there are only two options: III r . s ( REs i INARJRE • • II • III 1)The EDA consider amending the Business Subsidy Agreement.The EDA attorney researched the possibility and determined that amending the agreement to revise the wage and job goals is not specifically authorized under the statute. Further,the statute prohibiting amendment of the wage and job goals can specifically be interpreted to apply only to the JOBZ programs. Suggesting that it may not be required for other types of development districts/subsidy situations.To reduce liability for the EDA,any amendment that reduces the jobs/wage requirement could include a provision that the EDA would not make any representations that such reduction is in compliance with the business subsidy act and would provide for indemnification of the EDA by the Bank in connection with the amendment to the job/wage goals. In order to provide a"quid pro quo"basis for the reduction,it would be appropriate to reduce the benefit(Tax Abatement)by a determined dollar amount per job goals not met. Should the Finance Committee decide to recommend to the EDA this alternative,the EDA attorney will draft the appropriate language to amend the agreement. 2) Enforcement. Since the bank does not meet its goals,the bank will need to pay back the portion of the unmet goals going back to 2006 and the Business Subsidy Agreement will be void,meaning that the bank will no longer receive Tax Abatement going forward. If the committee chooses this option,EDA staff will need to work with the State who calculates the payback to determine the amount owed. Staff is asking that the Finance Committee make a recommendation to the EDA for their November 18, 2013 meeting. Financial Impact N/A Attachments • Elk River Business Subsidy Policy • Bank of Elk River Business Subsidy Agreement • 2011 Council BOE Extension Request • Notice of Public Hearing for extension • 2009 Extension Letter • 2011 Extension Letter • 2011 Extension Memo • 2009 Extension Memo • Letter from BOE • 2011 Notice of Public Hearing • N:\Departments\Community Development\Economic Development\EDA\Adminstrative\Agenda\Finance Committee Agenda\finance Committee\2013\11-5-2013\2.2 sr Bank of Elk River.docx • City of Elk River • Business Subsidy Policy Amended: May 2006 EDA Adopted: May 8,2006 City Council Adopted: May 15,2006 Original Adopted: Housing&Redevelopment Authority November 25,2002 City Council November 25,2002 Economic Development Authority December 9,2002 City of Elk River Economic Development Division 13065 Orono Parkway Elk River,MN 55330 763.635.1040 • _ Page 1of6 rill /NATIVE' CITY OF ELK RIVER POLICY AND PROCEDURES RELATING TO. THE USE OF BUSINESS SUBSIDIES I. PURPOSE For the purposes of this document,the term "City"shall include the Elk River City Council,Economic Development Authority,and Housing and Redevelopment Authority. The purpose of this policy is to establish guidelines and criteria regarding the use of business subsidies,such as tax increment financing(TIF),tax abatement,and other business subsidies for private development projects within the City of Elk River. This policy shall be used as criteria for providing subsidies,in addition to the requirements and limitations set forth by provisions of Minnesota State Statute 116J.993 (MN Business Subsidy Law),and the City's policy and guidelines of the particular form of subsidy. These guidelines shall be used in processing and reviewing applications requesting business subsidy assistance. The fundamental purpose of business subsidies in the City is to encourage desirable development or redevelopment that would not otherwise occur"but for" the assistance provided through business subsidies. It is the intent of the City to provide business subsidies,as well as other incentives that the City may deem appropriate,at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case-by-case basis,taking into • account established policies, specific project criteria,and demand on city services in relation to the potential benefits to be received from a proposed project. Meeting policy guidelines or other criteria does not guarantee the award of a business subsidy. Furthermore,the approval or denial of one project is not intended to set precedent for approval or denial of another project. Whenever possible it is the City's intent to coordinate the use of business subsidies with other applicable taxing jurisdictions. II. DEFINITION OF "BUSINESS SUBSIDY" The following types of assistance having a value in excess of$25,000 are defined as a "business subsidy"within the MN Business Subsidy Law: • State and local government agency grants; • Contributions of personal property,real property,or infrastructure; • The principal amount of a loan that exceeds $75,000 at rates below those commercially available; • Reductions or deferrals of taxes or fees; • Guarantees of any payment under any loan,lease,or other obligation;and, • Preferential use of government facilities. • City of Elk River Business Subsidy Policy 2 Amended May 2006 • III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES In accordance with the MN Business Subsidy Law,the City will consider using business subsidies to assist private development projects to achieve one or more of the following public purpose objectives: • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. • To enhance and diversify the City of Elk River's tax base. • To encourage additional unsubsidized private development in the area,either directly or indirectly through"spin off" development. • To achieve development on sites which would not be developed without business subsidies assistance. • To remove blight and/or encourage development of commercial and industrial areas in the city that result in higher quality development or redevelopment and private investment. • To offset increased costs of development of specific properties when the unique physical characteristics of the site may otherwise preclude private investment. • To create opportunities for the construction,operation and maintenance of affordable housing. IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES A. Business subsidy assistance will be provided from the City,on a"pay-as-you-go" note method,to the developer if the business subsidy is tax increment financing or tax abatement. Requests for up front financing will be considered on a case-by-case basis. B. A developer requesting business subsidy assistance must demonstrate,to the satisfaction of the City,sufficient cash equity investment in the project as required within the City's policy for the particular form of subsidy. C. Business subsidy assistance will not be provided in circumstances where land and/or property price is demonstrated by the County Assessor to be in excess of fair market value. This would normally be where the acquisition price is more than 10%in excess of market value. D. A developer must be able to demonstrate to the City,or,if applicable,to the underwriting authority,a market-demand for a proposed project. E. Business subsidy assistance will not be used in cases where the subsidy would create an unfair and significant competitive financial advantage over other similar projects in the area. F. Business subsidy assistance will not be used for projects that would place extraordinary demands on city infrastructure and services. • City of Elk River Business Subsidy Policy 3 Amended May 2006 G. If requested by the City the developer shall provide adequate financial guarantees to ensure completion of the project,including,but not limited to: minimum assessment agreements,letters of credit,cash escrows,and personal guaranties. H. Each developer must be able to demonstrate to the City's satisfaction,an ability to construct,operate,and maintain the proposed project based on past experience, general reputation,and credit history. I. If requested by the City,or its consultants,the developer shall provide sufficient market,financial,environmental,or other data relative to the successful operation of the project. I. Projects receiving business subsidy approval from other affected taxing jurisdictions will be more favorably received by the City. V. GUIDELINES FOR COMMERCIAL/INDUSTRIAL BUSINESS SUBSIDIES A. Business subsidies will not be used for retail or service businesses unless it is a redevelopment project that demonstrates that it will result in a substantial increase in tax base and a significant improvement in quality employment. B. The project must be consistent with the City's Comprehensive Plan,Land Use Plan, • and Zoning.Ordinances. C. The project must result in the retention of existing jobs that would be lost"but for" the proposed development or result an increase and diversification in local jobs. Business retention jobs will be considered on a one-for-one match to job creation only in cases where job loss is specific and demonstrable in accordance with the MN Business Subsidy Law. D. Specific wage and job goals will be determined by the City giving consideration to the particular form of the subsidy,nature of the development,the purpose of the subsidy,local economic conditions and similar factors. The recipient will have up to two years from the benefit date,which is the date that the recipient receives the subsidy,to meet the job and wage goals established by the City. E. The minimum wage for a job to be considered a new or retained job shall be$15.00 per hour,exclusive of benefits requited by law. Deviations from the job and wage goal may be considered for projects that will result in a significant increase in tax base. Deviations less than the wage floor will be considered on a case-by-case basis and in accordance with the requirements of the MN Business Subsidy Law. F. Business subsidies will not be used for commercial/industrial projects that have a history of inconsistent compliance with applicable environmental rules and regulations. • City of Elk River Business Subsidy Policy 4 Amended May 2006 • VI. GUIDELINES FOR REDEVELOPMENT AND RENOVATION BUSINESS SUBSIDIES In accordance with the MN Business Subsidy Law,the following forms of financial assistance related to redevelopment and renovation are not a"business subsidy": A. Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code,provided that the assistance is equal to or less than 50 percent of the total cost; B. Assistance for pollution control or abatement; C. Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value. VII. SUBSIDY APPLICATION PROCESS AND PROCEDURE A. Application for business subsidies shall be made on the City's forms for the particular type of assistance.The application for business subsidies shall request information required within the City's policies on the particular form of subsidy including but not limited to;a detailed description of the project;a preliminary site plan;the amount of business subsidy requested;the public purpose of the project; • the number and types of jobs to be created;the wages and benefits to be paid new employees;and verifiable funding sources and uses. B. Following a review by appropriate City Staff the application shall be referred to the either the Economic Development Authority,or Housing and Redevelopment Authority, for recommendation to the City Council for denial or approval. C. Before granting a business subsidy that exceeds$100,000,the City shall provide public notice and hold a hearing on the subsidy unless a hearing and notice on the subsidy is otherwise required by law. VIII. SUBSIDY AGREEMENT AND REPORTING REQUIREMENTS Each company receiving a business subsidy shall be subject to the subsidy agreement and reporting provisions and requirements set forth by the MN Business Subsidy Law and summarized below: A. Progress Reports The recipient shall file a report annually for two years after the receiving the subsidy or until all goals set forth in the subsidy agreement have been met,which ever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City's Economic Development Division no later than March 1 of each year for the progress made the previous year. • City of Elk River Business Subsidy Policy 5 Amended May 2006 • B. Maintain Facility The recipient agrees to maintain and operate its facility at the site where the subsidy is used for a period of five years after the date the subsidy is provided. C. Failure to Comply Businesses failing to comply with the subsidy agreement will be subject to fines, repayment requirements at the rate established within the MN Business Subsidy Law,and be deemed ineligible by the State to receive any loans or grants from public entities for a period of five years. 411 • City of Elk River Business Subsidy Policy 6 Amended May 2006 • � I TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT BY AND BETWEEN CITY OF ELK RIVER,MINNESOTA AND THE BANK OF ELK RIVER • • 1865057v5 III TABLE OF CONTENTS Page ARTICLE I DEFINITIONS 1 Section 1.1 Definitions 1 ARTICLE II REPRESENTATIONS AND WARRANTIES 3 Section 2.1 Representations and Warranties of the City 3 Section 2.2 Representations and Warranties of the Developer 3 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY 5 Section 3.1 Construction of Project and Reimbursement of Tax Abatement Property Cost 5 Section 3.2 Limitations on Undertaking of the City 5 Section 3.3 Commencement and Completion of Construction 5 Section 3.4 Damage and Destruction 5 Section 3.5 Change in Use of Project 5 Section 3.6 Prohibition Against Transfer of Project and Assignment of Agreement 5 Section 3.7 Real Property Taxes 6 Section 3.8 Business Subsidies Act 6 Section 3.9 Duration of Abatement Program 7 ARTICLE IV EVENTS OF DEFAULT 8 • Section 4.1 Events of Default Defined 8 Section 4.2 Remedies on Default 8 Section 4.3 No Remedy Exclusive 8 Section 4.4 No Implied Waiver 8 Section 4.5 Agreement to Pay Attorney's Fees and Expenses 9 Section 4.6 Release and Indemnification Covenants 9 ARTICLE V ADDITIONAL PROVISIONS 10 Section 5.1 Conflicts of Interest 10 1 Section 5.2 .Titles of Articles and Sections 10 Section 5.3 Notices and Demands 10 Section 5.4 Counterparts 10 • Section 5.5 Law Governing 10 Section 5.6 Duration 11 Section 5.7 Provisions Surviving Rescission or Expiration 11 . • 1865057v5 _- • TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made as of the / day of 2006,by and among the City of Elk River,Minnesota(the "City"), a municipal c rporation and political subdivision of the State of Minnesota, and The Bank of Elk River, a Minnesota corporation (the "Developer"). W1TNESSETH: WHEREAS, pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, the City has established a Tax Abatement Program; and WHEREAS, the City believes that the development and construction of a certain Project (as defined herein), and fulfillment of this Agreement are vital and are in the best interests of the City, will result in preservation and enhancement of the tax base, provide employment opportunities and are in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the requirements of the Business Subsidy Law,Minnesota Statutes, Section 116J.993 through 116J.995, apply to this Agreement; and • WHEREAS, the City has adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, after public hearings for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Agreement, as the same may be from time to time modified, amended or supplemented; Benefit Date means the date on which a Certificate of Occupancy for the Project is issued by the City; Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close; • 1865057v5 • f City means the City of Elk River,Minnesota; County means Sherburne County,Minnesota; Developer means The Bank of Elk River, a Minnesota corporation, its successors and assigns; Event of Default means any of the events described in Section 4.1; Project means the renovation by the Developer its existing facility located on the Tax Abatement Property in the City and construction an approximately 20,000 square foot expansion thereto; State means the State of Minnesota; Tax Abatement Act means Minnesota Statutes, Sections 469.1812 through 469.1815; Tax Abatement Program means the actions by the City pursuant to Minnesota Statutes, Section 469.1812 through 469.1815,as amended, and undertaken in support of the Project; Tax Abatement Property means all and any portion of the real property identified as Parcel Identification Numbers 75-405-0340 and 75-405-0320,located in the City; • Tax Abatements means 100% of the City's share of the property taxes based on the combined market value of the Tax Abatement Property in excess of$1,697,100 which is the current market value of Tax Abatement Property as improved by the Developer's existing facility prior to expansion and renovation determined by the Sherburne County assessor in 2006 for taxes payable in 2007, as determined on an annual basis by the City's Director of Economic Development and abated in accordance with the Tax Abatement Program. • 1865057v5 2 • ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the City. The City makes the following representations and warranties: (1) The City is a municipal corporation and a political subdivision of the State and has the power to enter into this Agreement and carry out its obligations hereunder. (2) The Tax Abatement Program was created, adopted and approved in accordance with the terms of the Tax Abatement Act. (3) To finance the costs of the Project to be undertaken by the Developer, the City proposes, subject to the further provisions of this Agreement, to apply the Tax Abatements to reimburse the Developer for a portion of the costs of the Tax Abatement Property as further provided in this Agreement. (4) The City has made the findings required by the Tax Abatement Act for the Tax Abatement Program. • Section 2.2 Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (1) The Developer has the power to enter into this Agreement and to perform its obligations hereunder and is not in violation of its articles or bylaws or any local, state or federal laws. (2) The Developer is a corporation validly existing under the laws of this State and has full power to enter into this Agreement and carry out the covenants contained herein. (3) The Developer will cause the Project to be constructed in accordance with the terms of this Agreement and all local, state and federal laws and regulations (including, but not limited to,environmental, zoning, energy conservation,building code and public health laws and regulations). (4) The Developer will obtain or cause to be obtained, in a timely mariner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be lawfully constructed (5) The construction of the Project would not be undertaken by the Developer, and in the opinion of the Developer would not be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. • { 1865057v5 3 (6) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound,or constitutes a default under any of the foregoing. (7) The Developer will cooperate fully with the City with respect to any litigation commenced with respect to the Project but only to the extent that the City and the Developer are not adverse parties to the litigation. (8) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. • O • 1865057v5 4 • ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Construction of Project and Reimbursement of Tax Abatement Property Cost. (1) The costs of the construction of the Project shall be paid by the Developer. The Developer will construct the Project in accordance with the approved construction plans and at all times prior to the termination of this Agreement will operate and maintain,preserve and keep the Project or cause the Project to be maintained, preserved and kept with the appurtenances and every part and parcel thereof,in good repair and condition. (2) Upon submission to the City of invoices relating to the costs of construction of the Project which exceed the costs of constructing a comparable new building as a result of the shape,size and downtown location of the Tax Abatement Property in an amount not less than the Reimbursement Amount, the City shall reimburse the Developer for such costs of the Project actually incurred in an amount not to exceed$300,000 (the"Reimbursement Amount")pursuant to the Abatement Program as provided in Section 3.9. Section 3.2 Limitations on Undertaking of the City, Notwithstanding the provisions of • Section 3.1, the City shall have no obligation to reimburse the Developer for the costs of the Project,if the City,at the time or times such payment is to be made,is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured. Section 3.3 Commencement and Completion of Construction. The Developer shall complete the Project by March 31, 2007. All work with respect to the Project to be constructed or provided by the Developer shall be in conformity with the construction plans as submitted by the Developer and approved by the City. Nothing in this Agreement shall be deemed to impair or limit any of the City's rights or responsibilities under its zoning laws or construction permit processes. Section 3.4 Damage and Destruction. In the event of damage or destruction of the Project the Developer shall repair or rebuild the Project. Section 3.5 Change in Use of Project. The City's obligations pursuant to this Agreement shall be subject to the continued operation of the Project by the Developer. Section 3.6 Prohibition Against Transfer of Project and Assignment of Agreement. The Developer represents and agrees that prior to the termination date of this Agreement the Developer shall not transfer the Project or any part thereof or any interest therein, without the prior written approval of the City. The City shall be entitled to require as conditions to any such approval that: • 1865057v5 5 ii • (1) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer. (2) Any proposed transferee, by instrument in writing satisfactory to the City shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to all the conditions and restrictions to which the Developer is subject. (3) There shall be submitted to the City for review and prior written approval all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Project. Section 3.7 Real Property Taxes. The Developer shall, so long as this Agreement remains in effect, pay all real property taxes with respect to all parts of the Tax Abatement Property owned by it which are payable pursuant to any statutory or contractual duty that shall accrue until title to the property is vested in another person. The Developer agrees that for tax assessments so long as this Agreement remains in effect: (a) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the ad valorem property taxation of real property contained on the Tax Abatement Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Tax Abatement Property, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (b) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Tax Abatement Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings,including delinquent tax proceedings with respect to the Tax Abatement Property; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (c) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.181,or any other State or federal law, of the ad valorem property taxation of the Tax Abatement Property so long as this Agreement remains in effect. Section 3.8 Business Subsidies Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 1161.993 to 1161.995 (the "Business Subsidies Act"), the Developer acknowledges and agrees that the amount of the"Business Subsidy"granted to the Developer under this Agreement is the value of a portion of the Tax Abatement Property, which is approximately $300,000, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to s65o57v5 6 • undertake without the Business Subsidy. The public purpose of the Business Subsidy is to increase the tax base in the City. The Developer agrees that they will meet the following goals (the "Goals"): it will create at least twenty (20) full time jobs in connection with the development of the Development Project at a wage of at least $15.00 per hour, which includes benefits not required by law,within two years from the Benefit Date. (2) If none of the Goals are met, the Developer agrees to repay all of the Business Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction,the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is twenty(20) (i.e. number of jobs set forth in the Goals). (3) The Developer agrees to (i)report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2007, and within 30 days after the deadline for • meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of$100 for each subsequent day until the report is filed up to a maximum of$1,000. (4) The Developer agrees to continue operations of the Project for at least five (5) years after the Benefit Date. (5) Other than the Tax Abatements provided by the City and comparable tax abatements from the County, there are no state or local government agencies providing financial assistance for the Project. (6) There is no parent corporation of the Developer. Section 3.9 Duration of Abatement Program. The Tax Abatement Program shall exist for a period of up to twelve years beginning with real estate taxes payable in 2008 through 2019. On or before February 1 and August 1 of each year commencing August 1, 2008 until the earlier of the date that the Developer shall have received the Reimbursement Amount or February 1, 2020 the City shall pay the Developer the amount of the Tax Abatements received by the City in the previous six month period. The City may terminate the Tax Abatement Program and this Agreement at an earlier date if an Event of Default occurs and the City rescinds or cancels this Agreement. • 1865057v5 7 yyF • ARTICLE IV EVENTS OF DEFAULT Section 4.1 Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (1) Failure by the Developer to timely pay any ad valorem real property taxes, special assessments,utility charges or other governmental impositions with respect to the Project. (2) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms,conditions and limitations of this Agreement. (3) Failure by the Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. Section 4.2 Remedies on Default. Whenever any Event of Default referred to in Section 4.1 occurs and is continuing, the City, as specified below, may take any one or more of the following actions after the giving of thirty(30) days' written notice to the Developer citing with specificity the item or items of default and notifying the Developer that it has thirty (30) days within which to cure said Event of Default. If the Event of Default has not been cured within said thirty(30)days: (a) The City may suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the City,that the Developer will cure its default and continue its performance under this Agreement. (b) The City may cancel and rescind this Agreement. (c) The City may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 4.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by the other party, such waiver shall be • 1865057v5 8 limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that they shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. Section 4.6 Release and Indemnification Covenants. (1) The Developer releases from and covenants and agrees that the City and its governing body members, officers, agents, servants and employees shall not be liable for and agrees to indemnify and hold harmless the City and its governing body members, officers, agents, servants, and employees against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Project. (2) Except for any willful misrepresentation or any willful or wanton misconduct of the following named parties, the Developer agrees to protect and defend the City and its governing body members, officers, agents, servants and employees, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, action or other proceeding • whatsoever by any person or entity whatsoever arising or purportedly arising from a breach of the obligations of the Developer under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, maintenance and operation of the Project. (3) The City and its governing body members, officers, agents, servants and employees shall not be liable for any damages or injury to the persons or property of the Developer or its officers, agents, servants or employees or any other person who may be about the Project due to any act of negligence of any person. • (4) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. • 1865057v5 9 • ARTICLE V ADDITIONAL PROVISIONS Section 5.1 Conflicts of Interest. No member of the governing body or other official of the City shall participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the City shall be personally liable to the City in the event of any default or breach by the Developer or successor or on any obligations under the terms of this Agreement. Section 5.2 Titles of Articles and Sections. Any titles of the several parts, articles and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 5.3 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,return receipt requested,or delivered personally, and (1) in the case of the Developer is addressed to or delivered personally to: • The Bank of Elk River 630 Main St. Elk River,MN 55330 Attention:President (2) in the case of the City is addressed to or delivered personally to the City at: City of Elk River Elk River City Hall 13065 Orono Parkway Elk River,MN 55330-5600 Attention:Director of Economic Development or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 5.4 Counterparts. This Agreement may be executed in any number of counterparts,each of which shall constitute one and the same instrument. Section 5.5 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State of Minnesota. • • 1865057v5 10 • Section 5.6 Duration. This Agreement shall remain in effect through the earlier of the date the Developer receives the Reimbursement Amount or February 1, 2020, unless earlier terminated or rescinded in accordance with its terms. Section 5.7 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall survive any rescission,termination or expiration of this Agreement with respect to or arising out of any event,occurrence or circumstance existing prior to the date thereof. • • } • 1865057v5 11 • IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf, and the Developer has caused this Agreement to be duly executed in its name and on its behalf,on or as of the date first above written. THE BANK OF ELK RIVER By Its Sr. v.P -F C-EO • This is a signature page to the Tax Abatement and Business Subsidy Agreement by and between the City of Elk River,Minnesota and The Bank of Elk River. • 1865057v5 S-1 • • CITY OF ELK RIVER,MINNESOTA B ) �1' � f y Its Mayff By 0%1 Its Administrator • • This is a signature page to the Tax Abatement and Business Subsidy Agreement by and between the City of Elk River,Minnesota and The Bank of Elk River. • 1865057v5 S-2 ckyof El REQUEST FOR ACTION River- To ITEM NUMBER Mayor and City Council AGENDA SECTION MEETING DATE PREPARED BY November 21,2011 Annie Deckert,Director of Economic Development ITEM DESCRIPTION REVIEWED By Consider extension for meeting job and wage goals under the Cal Portner,City Administrator Tax Abatement and Business Subsidy Agreement for The Bank REVIEWED BY of Elk River—Public Hearing ACTION REQUESTED Following the public hearing,the Council is asked to authorize a second extension up to two years to The Bank of Elk River for meeting the wage and job goals outlined in the Tax Abatement&Business Subsidy Agreement BACKGROUND/DISCUSSION In April 2006,The Bank of Elk River entered into a Tax Abatement&Business Subsidy Agreement with the city for the renovation and construction of a 20,000 sq. ft. expansion of its downtown facility,and • committed to retaining 63 employees and creating 20 full-time jobs at a wage of$15/hour by September of 2009. Under the agreement,the developer is eligible to receive tax abatement for a portion of eligible renovation costs up to$300,000 provided on a pay-as-you-go basis. Under the MN Business Subsidy Law,public agencies are required to report annually on the progress toward job and wage goals for two years,or until the goals are met,whichever is later. As of the end of September 2009,the developer created 10 full-time jobs to date. At that time,the developer requested a two-year extension to achieve their job and wage goals which the City Council approved on December 21,2009,extending their job creation deadline to September of 2011. The attached letter from The Bank of Elk River indicates the developer's response in their attempt to achieve the wage and job goals. In 2011,the bank experienced a re-organization/downsizing of the company and eliminated 10 positions at the Main Street Office. As of September 30,2011,The bank employs 59 full-time and eight part-time employees. Due to economic conditions,the developer is requesting the city's consideration of up to a two-year extension to achieve these goals,allowing time for economic_conditions to improve and increase the demand for job growth. The request would extend the job creation deadline to September 2013. The developer has been invited to the council meeting to answer any questions. FINANCIAL IMPACT The agreement allows that if goals are met in part,the city has the option to reduce the subsidy on a prorated basis to the jobs created, or consider an extension of the term to meet the goals. To date,the developer has received total tax abatement in the amount of$78,572.61. The term of the tax abatement � 1 ■ ErEl 1r NAME is up to 12-years or until the reimbursement amount is reached. If the developer does not meet the goals by the end of the extension term,the city retains the option to reduce the subsidy. ATTACHMENTS • Correspondence from The Bank of Elk River dated October 11,2011 • Correspondence from The Bank of Elk River dated November 16,2011 Action Motion by Second by Vote Follow Up • • • • • CITY OF ELK RIVER NOTICE OF PUBLIC HEARING REGARDING EXTENDING TIME FOR MEETING WAGE AND JOB GOALS UNDER THE TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT FOR THE BANK OF ELK RIVER EXPANSION PROJECT NOTICE IS HEREBY GIVEN that the City Council of the City of Elk River, Minnesota (the "City"), will hold a public hearing at a meeting of the City Council beginning at 6:30 p.m., on Monday, December 21, 2009, to be held at City Hall, Elk River, Minnesota, on the request of The Bank of Elk River (the "Company") that the City grant a two-year extension of time to the Company, pursuant to Minnesota Statutes, Section 116J.994, Subdivision 6, in order for them to meet the wage and job goals set forth in that certain Tax Abatement and Business Subsidy Agreement (the "Agreement") entered into between the City and the Developer on April 17, 2006. The City Council will consider granting an extension of time to the Company so it can meet its goals. The Agreement is on file and of record at the office of the Director of the Economic Development Authority at the City Hall during regular business hours. • All interested persons may appear at the December 21st public hearing and present their views orally or in writing. Anyone needing reasonable accommodations or an interpreter should contact the City Clerk's office at the City Hall,telephone(763)635-1000. [Publish on December 12,2009] • 2337153v1 • December 31,2009 LeRoy Lindenfelser The Bank of Elk River 630 Main Street Elk River,MN 55330 In February 2006,the City of Elk River approved$300,000 of Tax Abatement assistance to The Bank of Elk River. As a requirement of receiving such assistance the company is required to establish the job and wage goals—create 20 full-time jobs at a wage of$15/hour,in addition to the job retention of 63 FIE positions (Elk River location as of April 2006)within 2-years of the Certificate of Occupancy issued September 13,2007. • Your request for a 2-year extension was recently approved by the City Council on December 21, 2009 (meeting minutes enclosed). The approval extends the deadline to meet job creation goals as specified in the original agreement by September 13,2011. You will still be required to continue to report progress on job and wage goals annually as requested by the City until the goals are met. Please contact me with any questions at 763.635.1041. Best wishes for a brighter New Year! Sincerely, Catherine Mehelich Director of Economic Development Enclosure: 12.21.09 City Council Meeting Minutes CC: Pat Dwyer,President of The Bank of Elk River 1110 • September 7, 2011 LeRoy Lindenfelser The Bank of Elk River 630 Main Street Elk River, MN 55330 In February 2006,the City of Elk River approved $300,000 of Tax Abatement assistance to The Bank of Elk River. As a requirement of receiving such assistance the company is required to establish the job and wage goals—create 20 full-time jobs at a wage of$15/hour, in addition to the job retention of 63 FTE positions (Elk River location as of April 2006)within 2-years of the 1111 Certificate of Occupancy issued September 13, 2007. Your request for a 2-year extension was approved by the City Council on December 21, 2009. The approval extends the deadline to meet job creation goals as specified in the original agreement by September 13, 2011. You will still be required to continue to report progress on iob and wage goals annually as requested by the City until the goals are met. Please contact me with any questions at 763.635.1041. Sincerely, Annie Deckert Director of Economic Development Enclosure:Job creation form • CC: Pat Dwyer, President of The Bank of Elk River • • 1 REQUEST FOR ACTION........._ River To Item Number Mayor&City Council 6.3. Agenda Section Meeting Date Prepared by Community Development December 21,2009 Annie Deckert,Director of Economic Development Item Description Reviewed by Consider Extending Time for Meeting Wage&Job Goals _Cal Portner,City Administrator Under the Tax Abatement and Business Subsidy Agreement for Reviewed by The Bank of Elk River Project—Public Hearing Action Requested Following the public hearing,the Council is asked to authorize an extension up to two years to The Bank of Elk River for meeting the wage and job goals outlined in the Tax Abatement&Business Subsidy Agreement. Background/Discussion In April 2006,The Bank of Elk River entered into a Tax Abatement&Business Subsidy Agreement with the City for the renovation and construction of a 20,000sf expansion to its downtown facility,and • committing to create 20 full time jobs at a wage of$15/hour by September 2009.Under the agreement the developer is eligible to receive tax abatement for a portion of eligible renovation costs up to$300,000 provided on a pay-as-you-go basis (commencing 2008). Under the MN Business Subsidy Law,public agencies are required to report annually on the progress toward job and wage goals for two years,or until the goals are met,whichever is later. As of the end of September 2009 (two-years),the developer created 10 full time jobs to date. At that time,the developer requested a two year extension to achieve their job and wage goals which the City Council approved on December 21,2009,extending their job creation deadline to September of 2011. The attached letter from The Bank of Elk River indicates the developer's response in their attempt to achieve the wage and job goals. Due to economic conditions, the developer is requesting the City's consideration of up to a two year extension to achieve these goals.The request would extend the deadline to September 2013. The developer has been invited to the Council meeting to answer any questions. Staff recommends that the City Council authorize a two year extension for meeting the job and wage goals established in the agreement due to economic conditions. Financial Impact The agreement allows that if goals are met in part,the City has the option to reduce the subsidy on a prorated basis to the jobs created,or consider an extension of the term to meet the goals. To date the developer has received total tax abatement in the amount of$29,166. The term of the tax abatement is up to 12-years or until the reimbursement amount is reached. If the developer does not meet the goals by the end of the extension term,the City retains the option to reduce the subsidy. • N:\Departments\Community Development\Economic Development\EDA\Adminstrative\Agenda\Finance Committee Agenda\Finance Committee\2013\11-5-2013\2.2 at 7 BankofElkRiver xtension Action Requested 11.14.11doc Attachments • Correspondence from The Bank of Elk River dated November 5,2009. Action Motion by Second by Vote Follow Up 41111 . • N:\Departments\Community Development\Economic Development\EDA\Adminstrative\Agenda\Finance Committee Agenda\Finance Committee\2013\11-5-2013\2.2 at 7 BankOfElkRiver.Extension Action Requested 11.14.11.doc '''"% The Bank November 16,2011 City of Elk River Attn:Annie B Deckert 13065 Orono Parkway Elk River,MN 55330 Re: Tax Abatement assistance Dear Annie As a follow up to our recent conversation,I wanted to provide you some more details regarding the • bank and our outlook for the next two years,in the event that someone from the Bank cannot attend the meeting on Monday. As we discussed,job creation in the next two years for our business is largely dependent on the rate of recovery the Elk River community realizes. We've recently restructured our business to better position for future profitability. With this came reductions to staff and a focus on efficiency. We are now staffed at a low point,so opportunities for growth and increased business will present the potential for new job creation at the Bank. As a community Bank,our successes and struggles mirror those of the businesses and communities we directly serve. We are hopeful that the years to come will be prosperous not only for the Bank, but for the entire Elk River community. Job creation will be a part of that prosperity. Sin rely, fr at 616 Bill.LaVigne Chief Operating Officer o 630 Main Street, Elk River, MN 55330 p)763-441-1000 t)763-441-0847 www.thebankofeikriver.com+ menteyrac CITY OF ELK RIVER NOTICE OF PUBLIC HEARING REGARDING EXTENDING TIME FOR MEETING WAGE AND JOB GOALS UNDER THE TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT FOR THE BANK OF ELK RIVER EXPANSION PROJECT NOTICE IS HEREBY GIVEN that the City Council of the City of Elk River, Minnesota (the "City"), will hold a public hearing at a meeting of the City Council beginning at 6:30 p.m., on Monday,November 21, 2011,to be held at City Hall, Elk River,Minnesota, on the request of The Bank of Elk River (the "Company") that the City grant a two-year extension of time to the Company, pursuant to Minnesota Statutes, Section 116J.994, Subdivision 6, in order for them to meet the wage and job goals set forth in that certain Tax Abatement and Business Subsidy Agreement (the "Agreement") entered into between the City and the Developer on April 17, 2006. The City Council will consider granting an extension of time to the Company so it can meet its goals. The Agreement is on file and of record at the office of the Director of the Economic Development Authority at the City Hall during regular business hours. All interested persons may appear at the November 21, 2011 public hearing and present their views orally or in writing. Anyone needing reasonable accommodations or an interpreter should contact the City Clerk's office at the City Hall,telephone(763)635-1000. [Publish on November 5,2011] • JI° Elk, River 13065 Orono Parkway Elk River,MN 55330 11/1/2013 Dear Bill LaVigne, I am writing to inform you that,as I had requested previously and as required under your contract with the EDA,the City will need documentation of the original number of jobs existing with the Bank on the subsidy benefit date and will need the attached 2013 Minnesota Business Assistance Form for Non-JOBZ Projects prepared by close of business today.If the EDA does not receive the documents requested,this matter will be presented to the EDA Finance Committee for a determination of whether the Bank is in default on its Tax Abatement Agreement with the EDA.The City has provided The Bank of Elk River two extensions and also set November 1,2013 as the final deadline to meet the requirements of the Business Subsidy Agreement We intend to present this matter to the EDA Finance Committee November 5,2013 and possibly November 12,2013.From there,it will go to the EDA and City Council. Sincerely, / /,G Brian B M.P.A. Director of Economic Development 1 Attach: State Form • • Phone:763.635.1000 ! 1 / E R E O ® i Fax:763.635.1090 'NAME' p_asitively = tnnes(tc( Please fill in date agreement signed(same as question 21) 2013 Minnesota Business Assistance Form for Non-JOBZ Projects • Use the Minnesota Business Assistance Form to report each business subsidy and financial assistance agreement signed fromAuaust 1� 1999 through December 31,2012 unless goals have been achieved and reported on a MBAF per Minn.Stat.§1161993 to§1167.995. You may complete and submit this form online,instead of submitting a paper version. • The following government agencies must submit a MBAF: 1)any local government/agency that signed a business subsidy agreement since January 1,2008,or represents a population of more than 2,500;2)all state government agencies authorized to provide business subsidies;3)business assistance that exceeds$150,000. • DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance maynot be awarded after June 1 of each year until a report has been submitted. • Questions? Call(651)259-7179. Information on where to mail or fax your completed MBAF(s)is on page 5. Section 1: (Grantor Information) 1.Name of grantor (funding entity): 2.Name of person completing this form: 3.Street address: 4.City: 5.Zip Code: 6.County: 7.Phone number: 8.Fax number: 9.E-mail address: 10.Please indicate who in your organization should receive the MBAF if different from the person in Question 2. – Name: — Title: Street Address: City: I Zip Code: Phone Number. Email Address: 11.Classification of grantor(Mark one.If grantor is entity created 12.Has your organization held a public hearing on and adopted • by gov't agency,please indicate affiliation. For example,a city government) criteria for awarding business subsidies in compliance with ..DA would cheek°City Minn.Stat.§1161994? (Mark one.) ❑City government ❑ .Yes,in 2013(attach criteria) f0 Yes,in 2013 but have not yet adopted criteria ❑County government ❑ Yes,prior to 2013 ❑Regional government If Yes: Hearing Date: Year Criteria Submitted: ❑State government ❑ ::o ❑Other(Please specify): I 0 Other(Please attach explanation.) 13.Has your organization signed any agreements to award a business subsidy or financial assistance from August 1,1999 through December 31,2012 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.) ❑ Yes(Complete the remainder of the form unless goals have been achieved and ❑No(Stop here,go to section.5 on page 4.) reported in a previously filed MBAF per Minn.Stat.01167.993 and§116..994.) • Section 2: Recipient Information _ 14.Name of business or organization I5.Address where business subsidy or financial assistance receiving subsidy or financial assistance: will be used Street address. City,State,Zip Code: 16.Does the recipient have a parent corporation? (Mark one) ❑Yes(Indicate name and address ofparent corporation below. If more than one,indicate ultimate owner.) 0 No Name of parent corporation: Street address: City,State,Zip Code: Minnesota Business Assistance Form(12/10/12) Page 1 of 5 Dept.of Employment and Economic Development JP 17.Industry of recipient's facility(Mark one.): ❑Manufacturing ❑Services 00 an Insurance,Real Estate ORetail Trade ❑Wholesale Trade CoFinnstructioce, n ❑Other(please specs&): 18.Did the recipient relocate as a result of signing this agreement? (Mark one.) 1 ❑Yes(Indicate city and state ofprevious address and reason recipient did not complete this project at that address.) • City/State of previous address: • Reason project not completed at previous address: • Indicate total number of employees who ceased to be employed by recipient when the recipient relocated to become eligible for the business subsidy. # ❑No(Go to Question 19.) 19.What would recipient have done without business subsidy or financial assistance? (Mark one): . ❑Remain at previous location,but not expand ❑Remain at previous location but expand at the location ❑Relocate to different Minnesota location ❑Relocated outside Minnesota ❑Other. . 19A.Was the project a result of eminent domain? El Yes 0 No Section 3: Agreement Information 20.Total dollar value of business subsidy or financial assistance 21.Date agreement signed(In addition to the agreement date, (Please separate value by type in Questions 24 and 25.): indicate any dates the agreement was amended): 22.Benefit date(Indicate the date the recipient receives the business subsidy. lithe subsidy involves physical equipment,then the benefit date is the date the equipment is placed into service. If the business subsidy involves property improvements,the benefit date is when the improvements are finished or when the business occupies the property): 23.Does the agreement provide a business subsidy or one of the four types of financial assistance(see Question 25)required to be reported? (Mark one.) . ❑business subsidy El financial assistance • 24.If the agreement provided a business subsidy,please indicate the 25.If the assistance was one of the four types of financial assistance, type(s)and total dollar value for each type. please indicate the type(s). ❑not applicable,agreement provided financial assistance ❑not applicable,agreement provided a business subsidy ❑loan(only principal) $ ❑assistance for property ❑grant(i.e.,forgivable loan) $ by contaminants $ ❑tax abatement $ ❑assistance for renovating building ❑TIF or other tax reduction or deferral* $ stock or bringing it up to code,and ❑guarantee or payment $ assistance provided for designated ❑contribution of property or infrastructure $ historic preservation districts,when ❑preferential use of governmental facilities $ 50 percent or less of total cost $ ❑land contribution $ ❑assistance for pollution control or ❑other(Specify subsidy type.): $ abatement $ ❑assistance for a TIF soils condition district $ 26.If the assistance included tax increment financing,please indicate 27.Are any other grantors providing a business subsidy or financial the type of TIF district (Mark one.) assistance to the same project? (Mark one.) ❑not applicable,assistance was not in the form of TIF 0 Yes(Specify each grantor and the value of their assistance below; ❑redevelopment attach an additional sheet if necessary. ❑renewal and renovation El soils condition Grantor. Value($): ❑economic development ❑mined underground space Grantor Value($): ❑hazardous substance subdistrict 26 A.If assistance included JOBZ benefits,please indicate type of assistance. (Mark all that apply and please also submit the JOBZ ❑No MBAF form.) ❑JOBZ ❑JOBZ AgZone ❑Biozone *For questions about TIF reporting requirements contact Arlin Waelti(651)296-7676 at the Minnesota Office of the State Auditor. Section 4: Goals and Public Purpose Identified in the Agreement 28.Minn.Stat.§1167.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following • public purposes were stated in the agreement? (Mark all that apply.) ❑Enhancing economic diversity [Increasing tax base(cannot be only purpose) ❑Creating high-quality job growth ❑Job retention ❑Other(please spedfl')= ❑Stabilizing the community 29.Indicate whether the agreement included the following types of goals,and whether the recipient had attained those goals at the time of this report (Fill in the boxes and attainment date(s)for each goal.) Goals established? Target attainment dates All goals attained? (month&year) A)Specific wage and job goals to be attained within 2 years Yes No 0 Yes No B)Other job-creation and/or retention goals Yes No Yes El No . C)Other wage goals Yes . No ❑Yes ❑No D)Goals other than wage and job goals Yes No ❑Yes 0 No (Please attach description of goals and progress toward attainment(if not documented in Questions 30 and 31.) 30. For each of the following wage categories,indicate the(new)job creation and/or retention goals stated in the agreement and the average hourly value of any employer-provided benefits goals for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value 7 (excluding time Job time Job Retention _ (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits No hourly wage- $ $ level goal less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 $ $ $13.00 to$14.99 $ $ $15.00 to$16.99 AO $ $ $17.00 to$18.99 $ $ $19.00 to$20.99 • $ $ $21.00 to$22.99 $ $ $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 $ • $ $29.00 to$30.99 $ $ $31.00 and $ $ -NIA O3 Pre •q = T61e1'(.-0, 0 4 1 Minnow- s '� Ass' ce Fo /I2) Pale 3 of 5 Dept of Employment and Economic Development 31. For each of the following wage categories,indicate the number of actual(new)jobs created and/or retained since the benefit date and the actual hourly value of any employer provided voluntary benefits for those jobs. (Full-time jobs are defined as new,permanent,non seasonal positions created subsequent to the business subsidy agreement in which employees are scheduled to work on average at least a • 40 hour work week. Part-time is defined as a new job in which an employee works for the recipient at a rate less than 40 hours per week within a recipient location). Job retention is defined as jobs at a specific wage level that exist prior to the signing of the business subsidy agreement. There must be evidence that the retained jobs will be lost without business assistance or where job loss is specific and demonstrable. Hourly Wage A.(New)Full- B.(New)Part- C.Job Total Jobs Hourly Value Hourly Value (excluding time Job ; time Job Retention (A+B+C) of Health of Non-Health Benefits) Creation Creation Insurance Insurance Benefits less than$7.00 $ $ $7.00 to$8.99 $ $ $9.00 to$10.99 $ $ $11.00 to$12.99 $ ' $ $13.00 to$14.99 $ $ $15.00 to$16.99 $ $ $17.00 to$18.99 $ $ $19.00 to$20.99 $ $ $21.00 to$22.99 $ $ $23.00 to$24.99 $ $ $25.00 to$26.99 $ $ $27.00 to$28.99 -I-. $ $ $29.00 to$30.99 $ $ $31.00 and q $ $ higher Takr,l 1'A `1`OA2( ('11.6- = (0 j 32. Has the recipient achieved all goals(see Question 29,30 and 31)and fulfilled all obligations stipulated in the agreement(Mark one.) ❑Yes ❑No • Section 5: Recipients Failing to Fulfill Obligations -. (Do not complete this section(questions 33-39)if you completed it on another MBAF submitted to DEED. Please below note which MBAF includes the information) 33.During the period January 1,2012 through December 31,2012,did your organization have any recipients who failed to report as required by Minn.Stat.§116J.993 and§1161.994? (Mark one.) ❑Yes(Indicate the name of each recipient failing to report and the value of subsidy or financial assistance awarded to that recipient Attach additional pages tf necessary.) • Name of recipient • Type of subsidy or assistance(See Questions 24&25.): • Value of subsidy or assistance: ❑No 34.Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on August 1,1999 through December 31,2012,that was required to be fulfilled by the time of this report? (Mark one.) ❑Yes(Complete the remainder of this section) ❑No(Stop here and submit form to DEED.) . III id 0..00 111 1 11-3 Minnesota Business Assistance Form(12/10/12) Page 4 of 5 Dept of Employment and Economic Development < " t/� i\-- •Ai Hourly Value of Hourly Hourly Rate with 111,Date of Currently Hourly Non-Health Value of Additional Hire Employed Rate Ins.Benefits Health Ins. Benefit 12/2011 Yes $11.50 $1.15 $2.35 $15.00 4/2012 Yes $11.50 $1.15 $2.35 $15.00 . 6/2009 Yes $13.32 $1.33 $2.35 $17.00 8/2011 Yes $16.00 $1.60 $2.61 $20.21 12/2009 Yes $23.22 $2.32 $2.35 $27.89 6/2009 Yes $23.46 $2.35 $2.35 $28.15 2/2009 Yes $27.06 $2.71 $2.35 $32.11 3/2010 Yes $34.35 $3.43 $2.35 $40.13 4/2010 Yes $37.81 $4.51 $2.35 $44.67 10/2011 Yes $38.72 $4.62 $2.35 $45.68 6/2010 Yes $40.14 $4.79 $2.35 $47.28 4/2007 Yes $49.52 $6.86 $2.35 $58.72 6/2013 Yes $59.13 $8.19 $2.35 $69.67 6/2008 Yes $60.00 $9.46 $2.35 $71.81 • 0 dA541Q_____ C- 0 - 0 i 1 1 6 For questions 35-39: Provide the following information for each recipient failing to fulfill goals or any other terms of an agreement that were to be attained by the time of reporting. (Attach additional pages if necessary.) 35.Information on recipient and agreement Name of recipient in default: Type of subsidy or assistance: Street address of recipient City/Zip code of recipient Initial value of subsidy or assistance: Outstanding Value of subsidy or assistance: 36.Reason(s)for default(Mark all that apply.): ❑recipient ceased operation ❑recipient relocated to a different community ❑recipient was unable to fill vacant positions ❑other(Speck reason.): 37.To date,has the recipient fulfilled its repayment obligation? (Mark one.) ❑Yes ❑No,recipient has begun to repay the assistance. ❑No,recipient has not begun to repay the assistance. 38.Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) ❑Yes ❑No 39.Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Return your completed MBAF(s)by Amin,2013 EITHER Mail To: Minnesota Business Assistance Report Minnesota Department of Employment and Economic Development—Analysis and Evaluation Ise National Bank Building 332 Minnesota Street,Suite E200 St.Paul,Minnesota 55101-1351 OR Fax To: (651)215-3841 Next year,please submit your information using our online form. • Minnesota Business Assistance Form(12/10/12) Page 5 of 5 Dept.of Employment and Economic Development • MEMORANDUM TO: Brian Beeman FROM: Andrea McDowell Poehler DATE: November 4,2013 RE: Bank of Elk River/Tax Abatement Agreement Per your request,you have asked for a chronology of events associated with the approvals for the Tax Abatement Agreement between the EDA and the Bank of Elk River and a summary of what action would need to be taken if the goals identified in the Agreement have not been met. Chronology Event 4/17/06: Effective Date of Tax Abatement Agreement Tax abatement amount of$300,000(over 12 years from 2008—2019) Requirements=Creation of 20 full-time jobs at a wage of at least$15/hour,including benefits not required by law,within 2 years of Benefit Date • Bank employed 63 FT employees 9/13/07: Benefit Date 9/13/09 Default 12/21/09: Extension of Job Creation Goals for 2 years Staff Memo indicates that only 10 jobs were created Tax abatements received=$29,166 Statute provides authority for only one extension for one year. 9/13/11: Default 11/21/11: Extension of Job Creation Goals for 2 years Staff Memo indicates that the 10 jobs created were lost and the Bank currently employed 59 FT employees Tax Abatement received= $78,572.61 9/13/13: Default(State and City agreed to an extension to 11/1/13, since the last extension was approved in November,to provide the full 2 years) S 1111 11/1/13: Bank has created 0 FT jobs and employs a total of 61 FT employees. Tax Abatement received=$126,898.00 Options There is no statutory authority to allow for additional extensions of the Agreement to allow the Bank to meet the job creation goals and the State has indicated that it would not support additional extensions. In a very few cases, cities have amended business subsidies to reduce the goals with a corresponding reduction in benefit. However, since no jobs have been created,there is very little room for negotiating a reduction. The remaining option is to declare the default,discontinue any future tax abatement amounts and require repayment of tax abatements paid to date with interest at the statutorily required rate. If any jobs have been created towards the goal,the repayment would be based on a pro-rata percentage based on the 20 jobs that were required to be created. DEED has indicated that the implicit price deflator for the project signed in 2006 that has defaulted in 2013 is as follows: 107.676(2013 2nd Quarter Implicit Price Deflator)/90.677 (2006 Implicit Price Deflator)= 1.1875 The Bank asserts that at some point since 2007,it has created 14 new jobs. If that is the • case,the Bank would be required to repay the following portion of the abatement received for the goals that were not met: 6/20 full-time employees not created=30%goal not met($126,898 tax abatement amount paid to date x.30=$38,069.40) $38,069.40 x 1.1875 =$45,207.41 If the City/EDA determine that no jobs were created because the current number of jobs is less than the number of jobs that existed on the Benefit Date,then the entire abatement received would need to be repaid as follows: $126,898 x 1.1875 =$150,691.38