RES 05-090
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RESOLUTION 05-~
EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: August 15, 2005
Pursuant to due call and notice thereof, a meeting of the City Council of the City of Elk
River, Sherburne County, Minnesota, was duly called and held at the City Hall in said City on
Monday, the 15th day of August, 2005, at 6:30 o'clock p.m.
The following members were present:
Mayor Klinzing, Councilmembers Motin, Dietz, Farber,
and Gump,hrey
and the following were absenf:
None
Member Farber
adoption:
introduced the following resolution and moved its
RESOLUTION AUTHORIZING EXECUTION OF
A TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT
BE IT RESOLVED by the City Council (the "Council") of the City of Elk River,
Minnesota (the "City"), as follows:
1. Recitals.
(a) Medical Extrusion Technologies, Inc., or a related entity (the "Developer")
proposes to construct an approximately 20,000 square foot light industrial facility in the
City (the "Project"). The Developer has requested that the City provide financial
assistance to the Developer for the Project. 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 fifteen years in an amount
not to exceed $127,716. The abatement will apply to 100% of the City's share of the
property taxes (the "Abatement") derived from the property described as Lot 2, Block 2,
Northstar Business Park (the "Property").
(b) The Developer and the City have determined to enter into a Tax
Abatement and Business Subsidy Agreement providing for the City's tax abatement
assistance for the Project (the "Agreement").
(c) On the date hereof, the Council held a public hearing on the question of
the Abatement and business subsidy, and said hearing was preceded by at least 10 days
but not more than 30 days prior published notice thereof.
(d) The Abatement is authorized under Minnesota Statutes, Sections 469.1812
through 469.1815 (the "Abatement Law").
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2.
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 thereof.
(b) Granting the Abatement is in the public interest because it will increase or
preserve the tax base ofthe City and provide employment opportunities in the City.
(c) The Property is not located in a tax increment financing district.
(d) In any year, the total amount of property taxes abated by the City by this
and other resolutions does not exceed the greater often percent (10%) of the current levy
or $200,000.
3. Terms of Abatement. The Abatement is hereby approved; provided, however,
this approval is contingent upon the approval by Sherburne County of an
abatement program for the Project upon the same terms as set forth 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 fifteen (15) years and shall apply to the
taxes payable in the years 2008 through 2022, inclusive.
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(b) The City will abate 100% of the City's share of the property tax amount
which the City receives from the Property, not to exceed $127,716; provided that the
Developer will be paid 90% of the City's share of the annual property tax amount which
the City receives from the Property not to exceed $114,998.
(c) 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.
4. Approval of Tax Abatement and Business Subsidy Agreement.
(a) The City Council hereby approves a Tax Abatement and Business Subsidy
Agreement with the Developer providing for payment of the Abatement and the City's
assistance for the Project in substantially the form submitted, and the Mayor and
Administrator are hereby authorized and directed to execute the Tax Abatement and
Business Subsidy Agreement on behalf of the City.
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(b) The approval hereby given to the Tax Abatement and Business Subsidy
Agreement includes approval of such additional details therein as may be necessary and
appropriate and such modifications thereof, deletions therefrom and additions thereto as
may be necessary and appropriate and approved by the City officials authorized by this
resolution to execute the Agreement. The execution of the Agreement by the appropriate
officer or officers of the City shall be conclusive evidence of the approval of the
Agreement in accordance with the terms hereof.
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The motion for the adoption of the foregoing resolution was made by member Farber and
duly seconded by member Gum:phrey and, upon a vote being taken thereon after
full discussion thereof, the following voted in favor thereof:
Mayor Klinzing, Councilmembers Motin, Dietz, Farber,
and Gumphrey
and the following voted against the same:
None
Whereupon said resolution was declared duly passed and adopted.
ATTEST:
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STATE OF MINNESOTA )
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COUNTY OF SHERBURNE)
I, the undersigned, being the duly qualified and acting Clerk of the City of Elk River,
Minnesota (the "City"), by reason of my office as 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 and business subsidy for the Medical Extrusion
Technologies, Inc. Project.
WITNESS my hand thislklLday of August, 2005.
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