04-014 RES RESOLUTION NO. 04-14
RESOLUTION APPROVING PROPERTY TAX ABATEMENTS
BE IT RESOLVED by the City Council (the "Council") of the City of Elk River,
Minnesota (the "City"), as follows:
1. Recitals.
(a) Orluck, LLC (the "Developer") proposes to construct an approximately
20,000 square foot light manufacturing facility in the City (the "Project"). The Developer
has requested that the City provide financial assistance to the Developer for the Projecto
The City proposes to use the abatement for the purposes provided for in the Abatement
Law (as hereinafter defined), including the Project. The proposed term of the abatement
will be for up to twelve years in an amount not to exceed $100,760. The abatement will
apply to 100% of the City's share of the property taxes (the "Abatement") derived from
the property described as Lot 1, Block 2, Country Crossing Business Center (the
"Property").
(b) On the date hereof, the Council held a public hearing on the question of
the Abatement, and said hearing was preceded by at least 10 days but not more than 30
days prior published notice thereof.
(c) The Abatement is authorized under Minnesota Statutes, Sections 469.1812
through 469.1815 (the "Abatement Law").
Findings for the Abatement. The City Council hereby makes the following
findings:
(a) The Council expects the benefits to the City of the Abatement to at least
equal or exceed the costs to the City thereofo
(b) Granting the Abatement is in the public interest because it will increase or
preserve the tax base of the City, provide employment opportunities in the City and help
redevelop an area previously blighted by poor soil conditions.
(c) The Property is not located in a tax increment financing districL
(d) In any year, the total amount of property taxes abated by the City by this
and other resolutions, if any, does not exceed the greater of ten percent (10%) of the
current levy or $200,000.
(e) At least 50 percent of the payroll of the operations of the Developer will
be for employees engaged in the material staging and production of tangible personal
property by procedures commonly regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new shapes, new qualities, or new
combinations and consequently the Developer is a "Qualified Business" pursuant to
Section 46901813 Subd~ 6b of the Abatement Law~
1623868v2 04-14
Terms of Abatement. The Abatement is hereby approved; provided, however, the
this approval is contingent upon the approval by Sherburne County of an
abatement program for the Project upon the same terms as set fbrth below for the
County's share of property tax amount which the County receives from the
Property. The terms of the Abatement are as follows:
(a) The Abatement shall be for up to twelve (12) years and shall apply to the
taxes payable in the years 2006 through 2017, inclusive.
(b) The City will abate 100% of the City's share of property tax amount which
the City receives from the Property, not to exceed $100,760.
(lc) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
(d) The Abatement may not be modified or changed during its term.
The motion for the adoption of the foregoing resolution was made by member
Motin and duly seconded by member Tveite and, upon a vote being
taken thereon after full discussion thereof, the following voted in favor thereof: Dietz, Kuester,
Tveite, Motin ~and Klinzin~.
and thet'olldw~ng voted against the sam~ None.
Whereupon said resolution was declared duly passed and adopted this 8th day of March, 2004.
-'Steph~Inie A. Klinzing, May°r~' --
ATTEST:
1623868v2 2 04-14
STATE OF MINNESOTA )
) SS
COUNTY OF SHERBURNE)
I, the undersigned, being the duly qualified and acting City Clerk of the City of Elk
River, Minnesota (the "City"), by reason of my office as City Clerk, DO HEREBY CERTIFY
that I have compared the attached and foregoing extract of minutes with the original thereof on
file in my office, and that the same is a full, true and complete transcript of the minutes of a
meeting of the City Council of the City, duly called and held on the date therein indicated,
insofar as such minutes relate to property tax abatements for the Orluck Industries, Inc. Project.
WITNESS my hand this 9th day of March, 2004.
Joal~:'S .chmidt, City Clerk
t623868v2 04-14