4.7. SR 08-17-2015
Request for Action
To Item Number
Mayor and City Council 4.7
Agenda Section Meeting Date Prepared by
ConsentAugust 17, 2015Amanda Othoudt, EDD
Item Description Reviewed by
GATR Assignment and Assumption of Tax Cal Portner, City Administrator
Abatement and Business Subsidy Agreement for
Reviewed by
GATR of Elk River.
Action Requested
Approve, by motion, the Assignment and Assumption of Tax Abatement and Business Subsidy
Agreement for GATR of Elk River.
Background/Discussion
The attached agreement assigns the rights to GATR of Elk River from GATR of Sauk Rapids for
organizational purposes. GATR of Sauk Rapids is a single-member entity also solely owned by Bob
Neitzke.
The assignment contains consent for the City of Elk River to agree to the organizational changes for
business subsidy and tax abatement purposes
Financial Impact
None
Attachments
GATR Assignment and Assumption of Tax Abatement and Business Subsidy Agreement for
GATR of Elk River
ASSIGNMENT AND ASSUMPTION OF
TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION OF TAX ABATEMENT AND
BUSINESS SUBSIDY AGREEMENT
(the “Assignment”)is entered into and made effective
GATR of Sauk Rapids, Inc.,
______________, 2015(the “Effective Date”), by and between a
GATR of Elk River, Inc.
Minnesota corporation(“Assignor”) and , a Minnesotacorporation
(“Assignee”).
RECITALS
A.
Assignor entered into a Tax Abatement and Business Subsidy Agreement with the
City of Elk River,Minnesota (“City”) dated _____________,2015, a copy of which is attached
Exhibit A
hereto as (the “Agreement”).
B.
Assignor desires to transfer and assign all of its right, title and interest in and to
the Agreement to Assignee, and Assignee desires to assume such interest along with all
obligations under the Agreement.
AGREEMENT
In consideration of mutual covenants and promises, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, Assignor transfers and
assigns to Assignee, all of Assignor's right, title and interest in the Agreement.
Assignee agrees to assume all obligations of Assignor and Assignee agrees to be subject
to all the conditions and restrictions to which the Assignor is subject to under the Agreement,
from and after the Effective Date of this Assignment.
Assignee covenants and agrees to indemnify, save and hold harmless Assignor from and
against any and all liability, claims or causes ofaction existing in favor of or asserted by any
party to the Agreement, any and all liability, claims or causes of action by any third party, arising
out of or relating to Assignee's failure to perform any of its obligations under the Agreement, and
any and all liability, claims or causes of action existing or asserted by any party relating to the
Tax Abatement Property, as defined in the Agreement.
All of the covenants, terms and conditions herein, shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns.
ASSIGNEE: ASSIGNOR:
GATR OF ELK RIVER, INC.GATR OF SAUK RAPIDS, INC.
By: ______________________________By: _________________________________
Robert Neitzke, President/CEORobert Neitzke, President/CEO
\[25874-0001/2057229/1\]
EXHIBIT A
Tax Abatement and Business Subsidy Agreement
\[25874-0001/2057229/1\]
CONSENT TO ASSIGNMENT OF AGREEMENT
The City of Elk River, Minnesota consents to the attached Assignment of the Agreement.
Dated: ________________, 2015
CITY OF ELK RIVER, MINNESOTA
By____________________________
Its Mayor
By_____________________________
Its City Clerk
\[25874-0001/2057229/1\]