RES 24-41CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION NO.41
RESOLUTION APPROVING A SECOND AMENDMENT TO TAX
INCREMENT DEVELOPMENT AGREEMENT WITH MOYER
PROPERTIES, LLC AND AN AMENDED TIF NOTE THEREIN
WHEREAS, on October 5, 2020, the City Council (the "Council") of the City of Elk
River, Minnesota (the "City"), entered into a Tax Increment Development Agreement, (the
"Original Agreement") with Moyer Properties, LLC, a Minnesota limited liability company (the
"Developer"), pursuant to which the City provided a taxable tax increment revenue note (the
"Note") to the Developer in the amount of $190,000, to finance a portion of the land acquisition
and site improvement costs related to the development of a 20,000 square foot warehouse facility
in the City (the "Minimum Improvements") to be owned by the Developer and leased to Shoot
Steel, Inc., a Minnesota corporation (the "Tenant"); and
WHEREAS, the Original Agreement included a business subsidy agreement under
Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act"),
which required the Tenant relocate 7 full-time and 1 part-time existing jobs to the Minimum
Improvements and create at least 6 full-time equivalent jobs at an average salary of at least
$18/hour excluding benefits (the "Goals"), as stipulated in a certain lease between the Developer
and the Tenant, prior to the compliance date as set forth in the Original Agreement (the
"Compliance Date"); and
WHEREAS, following a public hearing held on May 5, 2023, in compliance with the
Business Subsidy Act, the City extended the Compliance Date by one year to May 3, 2024 (the
"Amended Compliance Date") by executing a First Amendment to Tax Increment Development
Agreement, between the Developer and the City (the "First Amendment" and, together with the
Original Agreement, the "Agreement");
WHEREAS, the Developer has informed the City that the Tenant will not be able to meet
the Goals by the Amended Compliance Date;
WHEREAS, due to the Tenant's • failure to meet the Goals, the City and the Developer
desire to amend the Agreement (the "Amendment") to reduce the tax increment assistance
provided to the Developer pursuant to Section 116J.994, subd. 6 of the Business Subsidy Act; the
tax increment assistance shall be prorated to reflect the partial fulfillment of the Goals and
previously made payments to the Developer by the City under the Note, and the Amended and
Restated Tax Increment Revenue Note (the "Amended Note") shall be issued in the amount of
$53,989.93;
WHEREAS, the City believes that approval of the Amendment and the Amended Note
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therein is in the best interest of the City and its residents.
Now, therefore, be it resolved by the City Council (the "Council") of the City of Elk River,
Minnesota as follows:
1. The Council hereby approves the Amendment in substantially the form presented
to the Council, together with the Amended Note and any related documents necessary in
connection therewith (collectively, the "Amendment Documents"), and hereby authorizes the
Mayor and City Clerk to execute any such Amendment Documents to which the City is a parry,
on behalf of the City, and to carry out, on behalf of the City, the obligations of the City
thereunder when all conditions precedent thereto have been satisfied.
2. The approval hereby given to the Amendment Documents 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 legal counsel to the City and by the officers authorized herein or by the City to
execute said documents prior to their execution; and said officers are hereby authorized to
approve said changes on behalf of the City. The execution of any instrument by the appropriate
officers of the City shall be conclusive evidence of the approval of such document in accordance
with the terms hereof. In the event of absence or disability of the officers, any of the documents
authorized to be executed by this resolution may be executed without further act or authorization
of the Council by any duly designated acting official, or by such other officer or officers of the
Council as, in the opinion of the City Attorney, may act in their behalf.
3. Prior to delivery of the Amended Note, the City shall require the Developer return
the Note and execute the Acknowledgement Regarding TIF Note attached to the Amended Note.
4. Upon execution and delivery of the Amendment Documents, the officers and
employees of the City are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the City to implement the Amendment Documents,
when all conditions precedent thereto have been satisfied.
Approved by the City Council of the City of Elk River, Minnesota this 15th day of July,
2024.
ATTEST:
City Clerk
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