RES 06-014
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EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: February 6, 2006
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 6th day of February, 2006, at 6:30 o'clock p.m.
The following members were present:
Mayor Klinzing, Councilrnembers Dietz, Farber, Gumphrey, and Motin
and the following were absent:
None
Member Farber
adoption:
introduced the following resolution and moved its
RESOLUTION 06-14
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) The Bank of Elk River (the "Developer") proposes to renovate its existing
facility in the City and construct an approximately 20,000 square foot expansion thereto (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 twelve (12) years in an amount not to
exceed $300,000. The abatement will apply to 100% of the City's share of the property taxes
based on the market value of the property described as Parcel Identification Numbers 75-
405-0340 and 75-405-0320 (the "Property") in excess of the market value of Property as
improved by the Developer's existing facility prior to expansion and renovation determined
by the Sherburne County assessor in 2006 for taxes payable in 2007 (the "Abatement").
(b) On the date hereof, the Council held a public hearing on the question of the
Abatement and the business subsidy, 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:
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(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 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, that
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 twelve (12) years and shall apply to the
taxes payable in the years 2008 through 2019, inclusive.
(b) The City will abate and pay to the Developer 100% of the City's share of the
property taxes based on the market value of the Property in excess of the market value of
Property as improved by the Developer's existing facility prior to expansion and renovation
determined by the Sherburne County assessor in 2006 for taxes payable in 2007, not to
exceed $300,000.
(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 City Council hereby approves a Tax Abatement and Business Subsidy
Agreement as a subsidy agreement pursuant to the requirements of the Business Subsidy
Law, Minnesota Statutes, Section 116].993 through 116].995.
(c) 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 GUlTlphrpy and, upon a vote being taken thereon after
full discussion thereof, the following voted in favor thereof:
Mayor Klinzing,Councilmembers Dietz, Farber, Gumphrey, and Motin
and the following voted against the same:
None
Passed and adopted by the City Council of the City of Elk River on this 6th day of February, 2006.
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Stephanie Klinzing, Mayor
ATTEST:
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J o(nihmidt, City Clerk
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