RES 05-091
.
.
.
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 GumRhrey
and the following were absent:
None
Member Motin
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) RST Cayo, LLC (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 ten years in an amount not to exceed $75,000. The abatement will apply to
100% of the City's share of the property taxes (the "Abatement") derived from the
property described as Lot 5, Block 1, Elk River Business Park (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").
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.
oS- C1 }
.
(b) Granting the Abatement is in the public interest because it will increase or
preserve the tax base of the 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, if any, does not exceed the greater of ten percent (10%) of the
current levy or $200,000.
3. 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 forth below for the
County's share of property tax amount which the County receives from the
Property. The terms ofthe Abatement are as follows:
(a) The Abatement shall be for up to ten (10) years and shall apply to the
taxes payable in the years 2008 through 2017, inclusive.
(b) The City will abate and pay to the Developer 100% of the City's share of
property tax amount which the City receives from the Property, not to exceed $75,000.
(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.
(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.
.
2
.
.
.
The motion for the adoption of the foregoing resolution was made by member Motin and
duly seconded by member Farber 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:
MJ~~
Jo
idt, City Clerk
3
.
.
.
STATE OF MINNESOTA )
) SS
COUNTY OF SHERBURNE)
I, the undersigned, being the dilly 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 for the RST Cayo, LLC. Project.
WITNESS my hand this /~day of August, 2005.
~~h// ~
ci1~rk