3.5. SR 07-10-2000~ity of
iver o:
FROM:
SUBJECT:
City Council
Marc Nevinski, Assistant Director of
Economic Development
July 10, 2000
Tax Rebate Financing Resolution
Issue
In a motion on May 22, 2000, the City Council approved the use of Tax
Rebate Financing by R&W Associates for the construction of leasible space in
the McChesney Industrial Park. Unfortunately, as an oversight on my part,
the TRF request should have been approved by a resolution and not simply
by a motion.
Action Requested
To correct this error and comply with state statutes, I am requesting that the
city council adopt the attached resolution approving the use of TRF by R&W
Enterprises.
Attachments
· City Council Minutes from May 22, 2000
· Resolution Approving the use of Tax Rebate Financing by R&W
Enterprises
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
City Council Minutes
May 22, 2000
3.7.
3.8,
3.10.
3.11.
Page 2
PAY ESTIMATES:
a. #2 - EAST ELK RIVER STREET & STORM SEWER IMPROVEMENTS TO
LATOUR CONSTRUCTION IN THE AMOUNT OF $338,546.11 -
APPROVED
b. #12 - EAST ELK RIVER WATER & SEWER IMPROVEMENTS - TO S.R.
WEIDEMA IN THE AMOUNT OF $173,484.94 - APPROVED
APPOINTMENT OF AUSTIN WHITFORD AS LEAD OPERATOR FOR WWTS
EFFECTIVE MAY 6, 2000 AT PAY GRADE 10, STEP E -- APPROVED
RENEWAL OF CITY'S INSURANCE WITH THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST FOR THE COVERAGE PERIOD OF APRIL 1,2000 TO APRIL 1,
2001 FOR PROPERTY, LIABILITY, OPEN MEETING LAW, PETRO FUND, BOND,
AND MISCELLANEOUS OTHER INSURANCE COVERAGE - APPROVED
REQUEST TO HIRE FINANCE DEPARTMENT INTERN WITH FUNDS TO COME
FROM COUNCIL CONTINGENCY - APPROVED
REQUESTS BY CITY ADMINISTRATOR AND FINANCE DIRECTOR TO ATTEND
NATIONAL CONFERENCES - APPROVED
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 3-0.
4.1a. Consider Hosting an AII-NJ.clht Dance at the Elk River Ice Arena
Larry Farber arrived at 6:15 p.m.
Rich Czech stated that a promoter would like to host an all-night dance at the Elk
River Ice Arena. Rich commented that the Ice Arena would need to monitor the
noise levels to make sure the residents in the area would not be affected. Rich
noted that no drugs or alcohol would be allowed at the event and he would
have security on hand.
COUNClLMEMBER THOMPSON MOVED TO ALLOW THE ICE ARENA TO HOST ALL-
NIGHT EVENTS. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
4.1b.
Consider Proclamation Dedicating June 2, 2000, as Elk River Police Reserve Unit
Day
George Zabee, Captain Advisor for the Elk River Police Reserves gave a brief
history of the Elk River Police Reserve Unit. George discussed how the reserve unit
supports the Elk River Police Department and thanked the Council for their
support to the Reserves.
Tom Zerwas appointed four new reserves and distributed their badges.
COUNCILMEMBER THOMPSON MOVED TO PROCLAIM JUNE 2, 2000 AS ELK RIVER
POLICE RESERVE UNIT DAY. COUNClLMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
Public Hearing: Consider Proposal for Use of Tax Rebate Financinq (Tax
Abatement) in the Construction of an Industrial Building on Lot 3, Block 1,
McChesney Industrial Park
Acting Director of Economic Development Marc Nevinski stated that the EDA
recommended R&W Enterprises receive Tax Rebate Financing for the
construction of a multi-tenant industrial building in the McChesney Industrial Park.
City Council Minutes Page 3
May 22, 2000
Vice Mayer Motin opened the public hearing. There being no one for or against
the matter, Vice Mayor Motin closed the public hearing.
Councilmember Dietz questioned whether abating taxes in the amount of $6,159
per year is that significant to keep R&W Enterprises from building this project.
Councilmember Die~ stated that he was concerned that the county may not go
atong with abating their portion of the taxes and the city shouldn't abate the
taxes unless the county does dso.
Councilmember Thompson stated that he supports the project because it is a
challenging site to develop and there is a lack of this type of facility in the city.
COUNCILMEMBER THOMPSON MOVED TO APPROVE TAX REBATE FINANCING FOR
R&W ENTERPRISES. COUNClLMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 3-1. Councilmember Diet-z opposed.
4,3,
Liquor Compliance Hearin.q:
Tom Zerwas, Elk River Police Chief informed the Council that on April 19, 2000, the
Elk River Police Department conducted liquor compliance checks at all of the
liquor establishments in Elk River. Tom noted that Pi77a Hut, Applebees, and Ron's
Foods failed the compliance check.
Pizza Hut
Cecelia Robbins, manager of Pizza Hut apologized to the Council for the actions
of the Pizza Hut employee. Cecelia informed the Council that the employee has
since been terminated.
COUNCILMEMBER DIETZ MOVED TO IMPOSE A $500 CIVIL PENALTY FOR THE FIRST
VIOLATION BY PIZZA HUT IN A 24 MONTH PERIOD. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Appiebees
Bruce Hanson, a lawyer representing Applebees was apologetic to the Council
and stated that Applebees has a zero-tolerance policy towards serving minors.
Bruce stated that the employee has since been terminated and Applebees cards
everyone who looks under 40, uses training videos, and holds store-wide
meetings. Bruce noted that Applebees is looking at a machine that would swipe
driver's licenses.
COUNCILMEMBER FARBER MOVED TO IMPOSE A $500 CIVIL PENALTY FOR THE FIRST
VIOLATION BY PIZZA HUT IN A 24 MONTH PERIOD. COUNCILMEMBER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Ron's Foods
Tom Zerwas, Elk River Police Chief commented that Ron Dargis of Ron's Foods,
would like to have his ticensed revoked in lieu of paying the $500 penalty.
Ron Dargis stated that he has removed all beer from his store shelf and he would
like his license revoked.
VICE MAYOR MOTIN MOVED TO ACCEPT RON'S FOODS LIQUOR LICENSE IN LIEU OF
PAYING THE $500 CIVIL PENALTY AND THAT RON'S FOODS BE PROHIBITED FROM
RESOLUTION 00-
CITY OF ELK RIVER
A RESOLUTION APPROVING THE USE OF TAX REBATE
FINANCING BY R&W ENTERPRISES
Whereas, R&W Enterprises, LLC has filed an application for Tax Rebate
Financing pursuant to Minnesota Statute 469.1812 to 469.1815 (Tax
Abatement) for the construction of an 18,000 square foot multi-tenant
industrial building on Lot 3, Block 1 of the McChesney Industrial Park, Elk
River, MN;
Whereas, R&W Enterprises, LLC has submitted a Tax Rebate Financing
application that satisfies the requirements of the City of Elk River's Tax
Rebate Financing policy;
Whereas, R&W Enterprises is requesting Tax Rebate Financing in the
amount of $24,638 (estimated) over a period of four years on a pay-as-you-go
basis;
Whereas, R&W Enterprises, as a development corporation, cannot be
directly responsible for the number of jobs created by the project or the wages
paid, agrees, as its goal under the business subsidy law, to construct within
one year of the benefit date, an 18,000 sf multi-tenant building.
Whereas, the project will satisfy the following public purposes: 1)
enhancement and diversification of the city's economic industrial base, and 2)
contributes to the fulfillment of the Strategic Plan for Economic
Development;
Now Therefore Be It Resolved, the Elk River City Council approves the
use of Tax Rebate Financing for the purposes of industrial economic
development as described above.
Where Upon the resolution is adopted and passed this 10th day of July
2OO0.
ATTEST:
Stephanie Klinzing, Mayor
Sandra A. Peine, City Clerk
s: \eda\taxabate\trf#1kresolut.doc