Economic Development Authority Packet - August 17, 2026 with Presentations
Economic Development Authority
Regular Meeting
Agenda
Monday, August 17, 2026
5:30 PM
Elk River City Hall
▪ Regular meeting in Council Chambers
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. CONSIDER AGENDA
4. CONSENT AGENDA
Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of
these items unless there is a request to remove the item from the consent agenda to the regular agenda.
4.1 DRAFT Minutes - June 15, 2026
4.2 DRAFT Minutes - July 20, 2026
4.3 Check Register
4.4 Balance Sheet
4.5 Revenue/Expenditure Reports
5. OPEN FORUM
An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum
will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a
future meeting.
6. PUBLIC HEARINGS
An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments
become part of the official public record. For this reason, all comments must be made at the podium so they can be heard
and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to
questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding
additional testimony.
7. GENERAL BUSINESS
Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business
items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion,
solicit public feedback.
7.1 Presentation - Garden Gem Awards
7.2 Resolution 26-07 Approving Revised Purchase Agreement with O'Brien Holdings - 17610 Tyler St.
NW
7.3 Resolution 26-08 Adopting 2027 Budget
7.4 Resolution 26-09: Adopting the 2027 levy for repayment of 2013 Refunding Bonds (YMCA)
7.5 Agreement for a Mutual Driveway Easement at 17610 Tyler Street NW
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
7.6 Resolution 26-10 Accepting a Deed from the City of Elk River - 17610 Tyler St. NW
7.7 Terminating a Mutual Access Easement Agreement at 17610 Tyler Street NW
7.8 Granting a Drainage and Utility Easement
8. OPEN DISCUSSION
This section is reserved for the board and staff to discuss relevant topics, updates, and other non-action items of the board.
9. MOTION TO ADJOURN
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Meeting of the Economic Development
Authority
Held at the Elk River City Hall
Monday, June 15, 2026
Members Present: President Matt Westgaard, Commissioners Cory Grupa, J. Brian Calva, Jeff
Hartwig, Mike Beyer, Jennifer Wagner, and Charlie Blesener
Members Absent: None.
Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist
Joshua Mollan, and Recording Secretary Justin Dunford
1. CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 5:30 p.m.
2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
3. CONSIDER AGENDA
Moved by Commissioner Wagner and seconded by Commissioner Beyer to approve the
agenda. Motion carried 7-0.
4. CONSENT AGENDA
Moved by Commissioner Calva and seconded by Commissioner Grupa to approve the
following consent items as outlined in their respective staff reports. Motion carried 7-0.
4.1 DRAFT Minutes - May 18, 2026
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Reports
5. OPEN FORUM
President Westgaard opened the public hearing. There being no one to speak to this matter, President
Westgaard closed the public hearing.
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Economic Development Authority Minutes
June 15, 2026
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6. PUBLIC HEARINGS
There were no public hearings.
7. GENERAL BUSINESS
7.1 Resolution 26-06: Downtown Loan - Elk Dental Center
Moved by Commissioner Wagner and seconded by Commissioner Beyer to approve, by
motion, Resolution 26-06 authorizing a loan to Karma Real Estate, LLC. Motion carried 7-
0.
Director O'Neil presented the staff report and provided a rendering to the members of proposed
exterior changes to the Elk River Dental Center location. The location will receive a major remodel
and significant investment. The Economic Development Authority would provide a loan with standard
terms. Payments would be amortized over a 20-year schedule, likely with a ballot payment after the
60th month. Estimates show a monthly payment of $415.19 for the loan.
President Westgaard asked Mr. O'Neil what the interest rate of the loan would be, as there was
previous discussion regarding making adjustments to the interest rates based on the market. Mr. O'Neil
indicated that no such adjustment had been made, but that conversation could continue on that.
Commissioners Wagner and Beyer commented about how it was good to see the program taken
advantage of and for improvements to be made to a prime property that is forward-facing to the
highway.
7.2 Committee Member Appointment
Moved by Commissioner Calva and seconded by Commissioner Hartwig to approve, by
motion, the appointment of Connie Beckers to serve on the Beautification and Public Art
Committee. Motion carried 7-0.
Economic Development Specialist Joshua Mollan provided a brief update on the Beautification
Committee. The Committee has discussed the idea of a Utility Box Art Program/Project, and is working
with the Minnesota Art Board on ideas. The request for action was to appoint Connie Beckers to fill a
vacancy on the Beautification Commission.
The Economic Development Authority was thankful for community members and residents stepping up
and joining commissions.
8. OPEN DISCUSSION
Director O'Neil gave an update to the EDA members:
• The Tipsy on Main property is for sale. Currently, it looks like the intention is to sell the
property only.
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June 15, 2026
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• An update on the first building to the west of Granite Shores. An entity bought the property
roughly a year ago and is seeking to make adjustments. Plans are to bring in a Thai restaurant in
that area.
• CDI - involved parties are exploring permissions for gas easements. It is currently a lengthy
process and frustrating both CDI and staff. Luckily, a breakthrough was found last week and it
appears a path is opening up.
• Stoneworks, located on County Road 1 — they consolidated operations with their Plymouth
location. There may be opportunity in Elk River, but it is unfortunate that the Elk River part of
their business is shutting down in Elk River.
• Budget workshop for the upcoming Summer - Quick temperature check on timing for a July 20
meeting. There has been work by the marketing committee for ad hoc needs. Mr. O'Neil
thanked members Blesener, Wagner, and Calva for assisting with marketing needs.
• Director O'Neil asked members to begin thinking of ideas, goals, and insights to develop
internally and then present at a workshop. For example, consider program changes and
expansions, the Downtown Project next summer, and future growth of economic development
in Elk River. The goal is to strategically plan and make resources available.
9. MOTION TO ADJOURN REGULAR MEETING
Moved by Commissioner Beyer and seconded by Commissioner Grupa to adjourn the
meeting. Motion carried 7-0.
The regular meeting adjourned at 5:46 p.m. President Westgaard called the work session to order at
5:48 p.m.
10. WORK SESSION
10.1 Eden Endeavors - Hotel Developer
Director O'Neil provided an update on the project. The project has decided not to move forward.
There is still active interest in the development of a hotel in Elk River. Staff will continue to explore
opportunities and work with development partners moving forward.
11. MOTION TO ADJOURN
Moved by Commissioner Blesener and seconded by Commissioner Grupa to adjourn the
work session. Motion carried 7-0.
The work session adjourned at 5:54 p.m.
12. CLOSED MEETING - PID 75-00960-0010
President Westgaard closed the public meeting at 5:54 p.m. pursuant to M.S. 13D.05, Subdivision
3(c)(1).
Economic Development Authority Members Present: President Matt Westgaard,
Commissioner Mike Beyer, Commissioner Cory Grupa, Commissioner Jennifer Wagner,
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Economic Development Authority Minutes
June 15, 2026
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Commissioner Jeff Hartwig, Commissioner J. Brian Calva, Commissioner Charlie
Blesener
Staff Present: Economic Development Director Brent O'Neil, Economic Development
Specialist Joshua Mollan, and City Clerk Justin Dunford
President Westgaard read the following statement:
12.1 Statement to be read by the Chair:
"The Economic Development Authority will be closing the meeting pursuant to MN Statute
Section 13D.05, Subdivision 3(c)(1) to consider offers or counteroffers relating to the sale of PID
75-00960-0010."
12.2 Motion Calling Closed Meeting
Moved by Commissioner Wagner and seconded by Commissioner Beyer to open the
closed meeting. Motion carried 7-0.
12.3 Hold Closed Meeting
12.4 Motion to Adjourn Closed Meeting
Moved by Commissioner Beyer and seconded by Commissioner Wagner to adjourn the
closed meeting. Motion carried 7-0.
The meeting adjourned at 6:05 p.m.
Minutes prepared by Justin Dunford.
__________________________
Matt Westgaard, EDA President
________________________
Justin Dunford, City Clerk
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Meeting of the Economic Development
Authority
Held at the Elk River City Hall
Monday, July 20, 2026
Members Present: President Matt Westgaard, Commissioners Cory Grupa, J. Brian Calva, Jeff
Hartwig, Mike Beyer, Jennifer Wagner, and Charlie Blesener
Members Absent: None
Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist
Joshua Mollan, and Recording Secretary Dawn Robertson
1. CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 05:30 p.m.
2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
3. CONSIDER AGENDA
Moved by Councilmember Wagner and seconded by Councilmember Grupa to approve
the agenda. Motion carried 7-0.
4. CONSENT AGENDA
Moved by Councilmember Calva and seconded by Commissioner Hartwig to approve the
following consent items as outlined in their respective staff reports. Motion carried 7-0.
4.1 Check Register
4.2 Balance Sheet
4.3 Revenue/Expenditure Reports
4.4 DRAFT Together Elk River Minutes - March 16, 2026
5. OPEN FORUM
No one appeared for open forum.
6. PUBLIC HEARINGS
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July 20, 2026
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There were no public hearings on the agenda.
7. GENERAL BUSINESS
7.1 CDI Project Update
Mr. O'Neil shared that the projected closing date for the property will be the middle of August. He will
have action items on the August 17, 2026, meeting agenda for the Board and Council's approval. CDI
would like to break ground in August and wants to be operating in the new space in the spring. Staff
shared a map of the property to show where CDI had requested access off of Twin Lakes. Staff and
CDI have considered putting access on the property line. Mr. O’Neil noted the shared costs that would
be involved and is working on the 1st draft, including cost share including the EDA property. There
were several comments and considerations from the board about the shared easement and entrance,
such as: any future buildings on the adjacent property would share the driveway with CDI, current
traffic levels on Twin Lakes Road and sight lines for turning vehicles. Mr. O'Neil expressed that where
the proposed entrance will be located has a ridge that helps with views of oncoming traffic.
The Board directed staff to continue working on egress plans for future consideration.
8. OPEN DISCUSSION
Mr. Mollan shared that 16 gardens participated in the Garden Gem program and have been reviewed.
Next month the winners for the six categories will be awarded. Mr. Mollan mentioned that EDA
continues to create Open for Business Reels and Development Minute videos for Social Media Sites.
9. MOTION TO ADJOURN REGULAR MEETING
Moved by Commissioner Jennifer Wagner and seconded by Commissioner J. Brian Calva
to adjourn the meeting. Motion carried 7-0.
10. WORK SESSION
The regular meeting adjourned at 5:45 p.m. President Westgaard called the work session to order at
5:47 p.m.
10.1 2027 Budget Workshop
Mr. O'Neil shared budget updates. The Board and Staff discussed future land purchases and what
amount of money to keep in the operating reserve. Staff would like to hire a consultant to help make
future land purchase recommendations. He mentioned the city should be acquiring 15–20 acre lots, but
an outside expert may determine whether it should be more than that. The board wants to continue
marketing and advertising and will consider an entry level tier of marketing. Mr. O’Neil wants the board
to recognize the impact the 2027 downtown project is having on local businesses and consider ways to
help.
The Board directed staff to continue exploring possible land purchase options.
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July 20, 2026
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11. MOTION TO ADJOURN
Moved by Commissioner J. Brian Calva and seconded by Commissioner Cory Grupa to
adjourn the meeting. Motion Carried 7-0.
The meeting adjourned at 06:05 PM
Minutes prepared by Dawn Robertson.
___________________
Matt Westgaard, EDA President
___________________
Justin Dunford, City Clerk
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CITY OF ELK RIVER
Balance Sheet
July 31, 2026
Fund 920 - EDA
Assets
920-1010 Cash - EDA 2,734,387.39
Total Assets 2,734,387.39
Fund Equity
920-2400 Fund Balance 2,641,795.06
Revenues over Expenditures - YTD 92,592.33
Total Fund Equity 2,734,387.39
Total Liabilities & Equity 2,734,387.39
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CITY OF ELK RIVER
Revenues with Comparison to Budget
For the Months Ending July 31, 2026
Fund 920 - EDA
Period Actual YTD Actual Budget Unexpended PCNT
920-3-0000-3111 Property Taxes 220,518.19 220,518.19 429,850.00 209,331.81 51%
920-3-0000-3621 Interest Income 6,302.91 42,463.50 75,000.00 32,536.50 57%
920-3-0000-3629 Miscellaneous Revenue - 63.78 - (63.78) 0%
920-3-0000-3949 Transfer-HRA - - 4,500.00 4,500.00 0%
Total Fund Revenue 226,821.10 263,045.47 509,350.00 246,304.53 52%
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CITY OF ELK RIVER
Expenditures with Comparison to Budget
For the Months Ending July 31, 2026
Fund 920 - EDA
Period Actual YTD Actual Budget Unexpended PCNT
920-4-6210-4101 Regular Pay 10,405.62 61,393.16 138,000.00 76,606.84 44%
920-4-6210-4103 Part-time Pay 1,050.00 6,300.00 12,600.00 6,300.00 50%
920-4-6210-4104 PERA 795.42 4,705.60 10,550.00 5,844.40 45%
920-4-6210-4105 FICA 646.26 3,876.82 9,250.00 5,373.18 42%
920-4-6210-4107 Medicare 156.57 939.52 2,200.00 1,260.48 43%
920-4-6210-4108 Insurance 1,512.00 9,072.00 31,100.00 22,028.00 29%
920-4-6210-4109 Workers Comp 142.00 426.00 650.00 224.00 66%
920-4-6210-4112 PFML 48.85 291.30 800.00 508.70 36%
920-4-6210-4201 Office Supplies 2.31 266.43 2,000.00 1,733.57 13%
920-4-6210-4212 Fuels & Lubes - - 50.00 50.00 0%
920-4-6210-4304 Legal Fees - - 10,000.00 10,000.00 0%
920-4-6210-4319 Professional Services - - 25,000.00 25,000.00 0%
920-4-6210-4321 Telephone - - 700.00 700.00 0%
920-4-6210-4322 Postage - 12.72 100.00 87.28 13%
920-4-6210-4331 Travel, Conferences & Schools - 739.75 12,500.00 11,760.25 6%
920-4-6210-4349 Advertising/Marketing 2,502.80 12,742.52 115,500.00 102,757.48 11%
920-4-6210-4359 Publishing - 269.00 1,000.00 731.00 27%
920-4-6210-4361 Insurance 27.00 81.00 300.00 219.00 27%
920-4-6210-4404 Software Services - 11,052.32 17,500.00 6,447.68 63%
920-4-6210-4433 Dues & Subscriptions 275.00 5,365.00 6,200.00 835.00 87%
920-4-6210-4440 Miscellaneous 20.00 3,020.00 18,500.00 15,480.00 16%
920-4-62104510 Land - - 50,000.00 50,000.00 0%
920-4-6210-4721 Transfer-General Fund 49,900.00 49,900.00 49,900.00 - 100%
Total Fund Expenditures 67,483.83 170,453.14 514,400.00 343,946.86 33%
Net Revenue Over Expenditures 159,337.27 92,592.33 (5,050.00) (97,642.33) 1934%
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.1
Meeting Date
August 17, 2026
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Presentation - Garden Gem Awards
Reviewed by
Brent O'Neil
Cal Portner
Action Requested
Recognize the 2026 Garden Gem Award winners with a photo and presentation of the award by President
Westgaard.
Background/Discussion
During the second annual Garden Gem Awards, the Beautification and Public Art Committee received 22
nominations for 16 properties wishing to participate.
In July, the volunteer judging panel visited and scored participating properties and recommended the following
highest scorers to win their respective categories: Freeport Business Center (neighborhood) and Cretex
Companies (commercial). The winners of the residential categories were recognized at the HRA meeting
earlier this month.
All winners will receive a personalized garden stone and a winners' sign to be temporarily displayed at the
property. The engraved stones have been donated by Plaisted Companies.
Financial Impact
Program expenses are under $500.
Mission/Policy/Goal
The Garden Gem Awards aim to recognize exceptional gardens and landscaping in Elk River, thereby
supporting the beauty of the neighborhood and the community as a whole.
Attachments
1. Garden Gem Award Winners EDA Presentation
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Start the Garden Tour
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.2
Meeting Date
August 17, 2026
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Resolution 26-07 Approving Revised Purchase
Agreement with O'Brien Holdings - 17610 Tyler St.
NW
Reviewed by
Cal Portner
Action Requested
Approve, by motion, Resolution 26-07 approving a revised purchase agreement with O'Brien Holdings.
Background/Discussion
In May 2026, the EDA authorized a purchase agreement to sell the property at 17610 Tyler St. NW to
O'Brien Holdings to facilitate the expansion of the affiliated company Crystal Distribution, Inc. Timelines and
benchmarks set in the agreement are no longer accurate due to delays in the project over the summer. This
revised agreement updates key dates and addresses minor revisions necessitated by the project scope's
evolution. Notably, this agreement extends closing to September 30, 2026, and construction performance
milestones from December 1, 2026, to March 31, 2027.
Due to advance work on this project and agreement in the preceding weeks, we expect to turn the property
over to the company in a short timeframe, likely before August 31. This would allow the company to
commence work immediately and meet key timelines needed ahead of winter weather.
Financial Impact
The EDA will receive $518,000 less associated transaction costs at closing. Commissions and other costs are
estimated at $35,000.
Mission/Policy/Goal
Support industrial development.
Attachments
1. RES 26-07: CDI TIF Purchase Agreement
2. CDI Purchase Agreement
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City of Elk River
Economic Development Authority
Resolution 26-__
A Resolution approving a purchase agreement and TIF assistance agreement with O’Brien
Holdings, LLC including the conveyance of land therein
BE IT RESOLVED BY the Board of Commissioners (the “Board”) of The Economic Development Authority for
the City of Elk River, Minnesota (the “Authority”) as follows:
Section 1. Recitals.
1.01. The City of Elk River, Minnesota (the “City”) has approved the establishment of its Tax
Increment Financing District No. 30 (an economic development district) (the “TIF District”), within the
Municipal Development District No. 1 (the “Development Project”) and has adopted a tax increment
financing plan therefor for the purpose of financing certain public improvements within the Development
Project.
1.02. To facilitate development of certain property in the TIF District, the Authority proposes to enter
into a Purchase Agreement (the “Purchase Agreement”) with O’Brien Holdings, LLC, a Minnesota limited
liability company, or an affiliate thereof or entity related thereto (the “Developer”), under which the Authority
will convey to the Developer certain property described in Exhibit A attached hereto (the “Development
Property”) in order for the Developer to construct an approximately 40,000 square foot expansion of the
Developer’s manufacturing facility to be owned by Developer and operated by Crystal Distribution, Inc. (the
“Development”). In addition, the Developer, the Authority and the City will enter into a TIF Assistance
Agreement (the “TIF Assistance Agreement”) providing certain tax increment financing assistance to the
Development.
1.03. The Authority proposes to sell the Development Property to the Developer at the price of
$609,000. The purchase price for the Development Property will be paid from cash in the amount of $518,000,
and a Purchase Price Note (the “Purchase Price Note”) from the Developer in the amount of $91,000 which will
be repaid on a subordinate basis from available tax increment generated by property within the TIF District in
accordance with the TIF Assistance Agreement. In addition, the City proposes to reimburse the Developer for
certain public development costs in the amount not to exceed $673,000 through the issuance of a pay as you
go tax increment financing note (the “TIF Note”), subject to the terms and conditions set forth in the TIF
Assistance Agreement.
1.04. The Authority hereby finds that the execution of the Purchase Agreement and TIF Assistance
Agreement and performance of the Authority’s obligations thereunder, including the conveyance of the
Development Property to the Developer, are in the best interest of the City and its residents.
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1.05. The Board previously approved a form of the TIF Assistance Agreement and Purchase
Agreement after a duly noticed public hearing on May 4, 2026; provided, however, that the parties have
since renegotiated certain terms of the TIF Assistance Agreement and Purchase Agreement, and
accordingly, the TIF Assistance Agreement and Purchase Agreement have been re-submitted to the Board
for its approval.
Section 2. Agreements Approved.
2.01. The Board approves the Purchase Agreement and TIF Assistance Agreement in substantially
the form presented to the Board, together with any related documents necessary in connection therewith,
including without limitation, all documents, exhibits, certifications, or consents referenced in or attached
to the Purchase Agreement and TIF Assistance Agreement including the assessment agreement, any
documents required by the title company relating to the conveyance of property, and the deed conveying
the Development Property (the “Development Documents”). The Board hereby approves the conveyance
of the Development Property to the Developer in accordance with the terms of the Purchase Agreement.
2.02. The Board hereby authorizes the President and Executive Director, in their discretion and at
such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the
Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all
conditions precedent thereto have been satisfied, provided that the closing statement and other
documents required by the title company may be executed by the Executive Director. The Development
Documents shall be in substantially the form on file with the Authority and the approval hereby given to
the Development 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 Authority and by the officers authorized
herein to execute said documents prior to their execution; and said officers are hereby authorized to
approve said changes on behalf of the Authority. The execution of any instrument by the appropriate
officers of the Authority herein authorized shall be conclusive evidence of the approval of such document
in accordance with the terms hereof. This resolution shall not constitute an offer and the Development
Documents shall not be effective until the date of execution thereof as provided herein.
2.03. In the event of absence or disability of the officers, any of the documents authorized by this
resolution to be executed may be executed without further act or authorization of the Board by any duly
designated acting official, or by such other officer or officers of the Board as, in the opinion of the City
Attorney, may act on their behalf. Upon execution and delivery of the Development Documents, the
officers and employees of the Board are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the Board to implement the Development Documents, including
without limitation the issuance of tax increment revenue obligations thereunder when all conditions
precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax
increment accounts and the crediting of tax increments to the payment of the Purchase Price Note when
all conditions precedent thereto have been satisfied.
Section 3. Effective Date. This resolution shall be effective upon approval.
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Approved by the Board of Commissioners of the Economic Development Authority of the City of Elk
River this 17 day of August, 2026.
Matt Westgaard, President
ATTEST:
Brent O’Neil, Executive Director
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4921-5671-9001.7 1
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (the “Agreement”) is made and entered into this ________ day
of ________, 2026 (the “Effective Date”) by and between THE ECONOMIC DEVELOPMENT
AUTHORITY FOR THE CITY OF ELK RIVER, a public body corporate and politic and political
subdivision organized and existing under the laws of the State of Minnesota (the “Seller” or the
“Authority”), and O’BRIEN HOLDINGS, LLC, a Minnesota limited liability company (“Buyer” and,
together with Seller, the “Parties” or individually each a “Party”).
Recitals
WHEREAS, the Authority is the fee title owner of that certain real property legally described in
Exhibit A attached hereto (the “Property”) located in the City of Elk River, Minnesota (the “City’);
WHEREAS, the Buyer wishes to purchase the Property from the Seller subject to the terms and
conditions of this Agreement to construct on the Property, and the adjacent real property now owned by the
Buyer (the “Buyer’s Existing Property”), an approximately 40,000 square foot expansion to the
manufacturing business currently operated by Crystal Distribution Inc. (“Tenant”) on the Buyer’s Existing
Property in the City (the “Development”);
WHEREAS, the Seller believes that the development of the Property is vital and that it is in the
best interests of the Seller, and is in accordance with the public purpose and provisions of the applicable
state and local laws and requirements under which the Development will be undertaken. Further, the Seller
believes the Development will result in the enhancement of the City’s tax base, create jobs in the City and
the State of Minnesota (the “State”), help an existing business remain in the City and the State, and help
develop manufacturing facilities in the City’s industrial park; and
WHEREAS, the Seller is willing to sell the Property to the Buyer under the terms and conditions
provided herein.
Terms of the Agreement
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the Parties
agree as follows:
1. Recitals. The recitals as set forth above are hereby incorporated into this Agreement.
Capitalized terms used in this Agreement but not defined in this Agreement shall have the meanings given
such terms in the TIF Assistance Agreement (as hereinafter defined) unless the context requires otherwise.
2. Purchase Price. The sum of $20,000.00 in earnest money (the “Earnest Money”) shall be
paid by the Buyer to the Seller upon execution of this Agreement. The total purchase price for the Property
shall be $609,000 (the “Purchase Price”). At Closing (as defined below) the Buyer shall pay the Purchase
Price to the Seller in cash in the amount of $518,000 less the Earnest Money and with a purchase price note
in the amount of $91,000 (the “Purchase Price Note”) in substantially the form attached as Exhibit B to the
TIF Assistance Agreement.
3. Closing. Subject to the terms of this Agreement, the closing of the purchase and sale of
the Property contemplated by this Agreement (the “Closing”) shall occur at the office of Guaranty
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4921-5671-9001.7 2
Commercial Title, Inc. (the “Title Company”), on September 30, 2026, or sooner as determined by the
Parties (the “Closing Date”).
4. Due Diligence Investigation. The Buyer shall have a due diligence period commencing on
the Effective Date and ending 30 days thereafter (“Due Diligence Period”) to make all such investigations
as the Buyer, in its sole and absolute discretion, deems reasonable and necessary in determining the
suitability of the Property for the Buyer’s needs including:
a. To examine and inspect the Property, to review the Due Diligence Documents (as
hereinafter defined), to conduct feasibility studies with regard to the ownership and
operation of the Property, including, but not limited to, environmental reviews, soil
condition testing, surveying, engineering studies, appraisals and any other physical
inspections of the Property as determined by the Buyer and at Buyer’s expense (except
for the Due Diligence Documents as hereinafter defined), and to investigate all
physical aspects of the Property, and to review all other due diligence matters related
to the Property. Buyer may enter upon the Property to inspect the same, and may
conduct tests and examinations with regard thereto, provided that Buyer’s activities do
not unreasonably interfere with the ongoing operation of the Property. Buyer shall
promptly restore the Property to substantially the same condition in which it existed
immediately prior to any physical tests conducted by or on behalf of Buyer. Seller
shall cooperate with Buyer in obtaining reliance letters related to any existing
environmental conditions affecting the Property. Buyer agrees to indemnify and
defend Seller against any liens, claims, losses, or damage directly attributable to the
Buyer’s exercise of its right to enter and inspect the Property. Upon request by Seller,
Buyer agrees to provide Seller with a copy of any report prepared as a result of such
inspection, examination, or testing.
b. To investigate all zoning, code and governmental regulations or requirements in place
at the Property, and to obtain all land use and rezoning approvals and permits
determined necessary by the Buyer for Buyer’s intended Development and use of the
Property.
c. To secure funding for the purchase and development of the Property on terms
acceptable to Buyer, in Buyer’s sole discretion.
d. In addition to the contingencies in Section 8(a) below, Buyer shall have until the last
day of the Due Diligence Period to provide written notice to Seller of Buyer’s intention
to terminate this Purchase Agreement for any reason. If Buyer terminates this
Agreement within the Due Diligence Period, the transactions contemplated herein shall
be considered terminated and the Earnest Money, or a portion thereof, shall be
refunded to Buyer pursuant to Section 5 below.
5. Earnest Money. If this Agreement is terminated or expires, the Earnest Money shall be
used: (a) first, to reimburse and pay any and all TIF costs incurred by the City in connection with the TIF
Assistance Agreement or the transaction contemplated herein not otherwise covered by the deposit paid by
the Buyer with its TIF application and such portion of the Earnest Money shall be nonrefundable to Buyer,
and (b) second, any remaining balance of the Earnest Money shall be returned to the Buyer.
6. Title Review and Objections. Buyer has obtained from the Title Company and provided
to Seller, a copy of a commitment for an ALTA owner’s title insurance policy, which shall be periodically
updated in accordance with the Development Documents (as defined herein), and any survey desired by
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4921-5671-9001.7 3
Buyer (the “Survey”). Within ten (10) days after the later of (i) Effective Date or (ii) Buyer’s receipt of the
Survey, Buyer shall notify Seller in writing of any objections to the condition of title to the Property,
including those appearing in the Survey or a preliminary plat of the Property, or the objections shall be
deemed waived. If any objections are so made, the Seller shall be allowed until the Closing Date to cure
such objections and make the title to the Property good and marketable of record in Seller. Notwithstanding
the foregoing, Seller shall have no obligation to cure any title objections. If a timely objection has been
made by Buyer pursuant to this Section and such objection remains uncured by the Seller on the Closing
Date, Buyer, as its sole and exclusive remedy, may either: (A) terminate this Agreement by giving written
notice to the Seller, and having the Earnest Money, or a portion thereof, refunded to Buyer pursuant to
Section 5 above; or (B) elect to accept the title to the Property in its unmarketable condition and without
reduction of the Purchase Price by giving written notice to the Seller.
7. Conveyance Subject to Right of Re-entry. The Seller’s conveyance of the Property to the
Buyer pursuant to this Agreement shall be made in the form of a quit claim deed (the “Deed”), in
substantially the form set forth in Exhibit B attached hereto. The Deed shall include a right of re-entry for
breach of a condition subsequent in favor of the Seller (the “Right of Re-entry”) as attached to the Deed as
Exhibit B. The condition subsequent is that subject to “Unavoidable Delays” (as defined in the TIF
Assistance Agreement), the Buyer shall have commenced, or caused to have commenced, construction of
the foundation of the Minimum Improvements to be located on the Property by March 31, 2027 provided
that in accordance with Minnesota Statutes, Section 469.105, even in the event of Unavoidable Delays,
commencement of the construction of the foundation shall occur within 1 year from the Closing Date. If
Buyer breaches such condition subsequent, the Buyer shall re-convey the Property back to the Seller,
subject to matters then of record. If the Buyer fails to re-convey the Property to the Seller, the Seller may
elect to exercise its right of re-entry by commencing an action in Sherburne County District Court to
establish the breach of the condition subsequent. If the Seller establishes a breach of the condition
subsequent, title to and the right to possession of the Property and title to all improvements located thereon
shall revert to the Seller, and the Buyer is not entitled to any compensation from the Seller for the Property
or the value of any improvements the Buyer has made to the Property. If Buyer complies with the condition
subsequent in the Deed, Seller shall execute and deliver to Buyer the Certificate of Release attached to the
Deed as Exhibit C. Upon receipt of a certificate of release from the Seller in connection with the condition
subsequent, the Buyer shall record the certificate of release of the Right of Re-entry in the proper County
land records at its expense.
8. Contingencies.
a. Buyer’s Contingencies. The Buyer’s obligation to purchase the Property shall be
contingent on the following:
i. By the end of the Due Diligence Period, the Buyer shall have determined, in
its sole and absolute discretion, that it is satisfied with the results and matters
disclosed by the Buyer’s investigation of the Property pursuant to Section 4 of
this Agreement.
ii. By the Closing Date, the Buyer shall have determined, in its sole discretion,
that it will be able to obtain, or caused to be obtained, in a timely manner, all
required permits, licenses and approvals which must be obtained for the
Development, including without limitation, the “Lot Adjustment” (defined in
Section 8a.ix. below), and all other zoning and land use approvals, which must
be obtained for the Development.
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4921-5671-9001.7 4
iii. By the Closing Date, the Buyer shall have obtained approval from the City and
the Seller, following a duly noticed public hearing and the satisfaction of all
other conditions required by Minnesota law, of the Financial Assistance (as
hereinafter defined).
iv. By the Closing Date, Buyer, Seller, and the City shall have executed, effective
not later than the Closing Date, the TIF Assistance Agreement.
v. By the Closing Date, the Buyer shall have obtained all necessary financing for
the Development.
vi. By the Closing Date, the condition of title to the Property shall be satisfactory
to the Buyer following the Buyer’s examination of title as provided herein.
vii. By the Closing Date, Seller and the Buyer shall have negotiated and executed
an access agreement (the “Access Agreement”) for the Property and the
adjacent land owned by the Seller.
viii. By the Closing Date, (1) plans for the relocation of the stormwater utilities on
the Buyer’s Existing Property and the Property shall have been mutually
approved by Buyer, Seller, the City and Northern Natural Gas Company
(“Northern”), the holder of the rights to a gas line easement on and under the
Buyer’s Existing Property and the Property, and (2) Buyer, Seller, Northern
and the City (if required) shall have negotiated and executed any required
mutually agreeable encroachment agreement (the “Encroachment
Agreement”) allowing for the relocated stormwater utilities to encroach on the
area of the gas line easement in favor of Northern located on the Buyer’s
Existing Property and the Property.
ix. By the Closing Date, an administrative lot line adjustment shall have been
approved by Seller, Buyer and the City to split the Property from Seller’s
parcel described as Lot 1, Block 1, NORTHSTAR BUSINESS PARK for the
purpose of conveying the Property to Buyer and combining the Property with
Buyer’s Existing Property as one tax parcel for real estate tax purposes (the
“Lot Adjustment”).
x. Buyer and Seller shall have terminated that certain Mutual Driveway Easement
Agreement between Buyer and Seller dated November 21, 2005, and recorded
in the office of the Sherburne County Recorder as Document No. 609811 (the
“Driveway Termination”).
xi. Buyer shall have reviewed and approved a resolution by the City (1) to vacate
the drainage and utility easement along the common boundary line between
Buyer’s Existing Property and the Property as shown on the plat of
NORTHSTAR BUSINESS PARK, to be effective and recorded upon the
completion of construction, installation and the City’s acceptance of the new
stormwater utilities on the Property and connection to portions of the existing
stormwater facilities on the Buyer’s Existing Property and the Property and (2)
create a new drainage and utility easement for the new stormwater utilities that
will be constructed on the Buyer’s Existing Property and the Property and
which will connect with portions of the stormwater facilities that are located
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4921-5671-9001.7 5
in the drainage and utility easement that will be vacated in clause (1) above
(the “DU Vacation”).
The contingencies set forth above are for the benefit of the Buyer and may be waived by
the Buyer in the Buyer’s sole discretion. Notwithstanding any other provision in this
Agreement, a waiver of a contingency must be in writing to be effective. If any of the
above contingencies is not satisfied or waived by Buyer by the applicable date (i.e. end of
Due Diligence Period or the Closing Date), Buyer, as its sole and exclusive remedy, may
either: (A) terminate this Agreement by giving written notice to the Seller and having the
Earnest Money, or a portion thereof, refunded to Buyer pursuant to Section 5 above; or (B)
elect to waive such contingency(ies) and close on the purchase of the Property without
reduction of the Purchase Price.
b. Seller’s Contingencies. The Seller’s obligation to convey the Property shall be
contingent on the following being satisfied by the Closing Date:
i. Seller shall have determined, in Seller’s reasonable discretion, that Buyer will
be able to obtain, or caused to be obtained, in a timely manner, all required
permits, licenses and approvals for the Development, and will be able to meet,
in a timely manner, all requirements of all applicable local, state, and federal
laws and regulations which must be obtained or met for the Development
including without limitation a building permit, any needed variances, the Lot
Adjustment, and zoning and land use approvals;
ii. The Buyer shall have obtained approval from the City and the Seller of the sale
of the Property pursuant to this Agreement following a duly noticed public
hearing, and in accordance with and following the satisfaction of all conditions
required by Minnesota law, including Minnesota Statutes, Section 469.105;
iii. Following all requirements of Minnesota law, the Buyer, the Seller, and the
City shall have executed, effective not later than the Closing Date, a TIF
Assistance Agreement (the “TIF Assistance Agreement”), providing for,
among other things, the (a) construction of the Development by the Buyer in
accordance with plans, specifications and a timeline approved by the Seller;
(b) the Purchase Price Note in accordance with applicable law and the terms
of any tax increment financing assistance to be provided for the Development
(the “Financial Assistance”) in accordance with applicable law; (c) a minimum
assessment agreement for the Property and Buyer’s Existing Property as
shown on the Lot Adjustment; (d) any applicable legal or policy requirements
of the Seller related to the Development or the Purchase Price Note; and (e)
any documents ancillary thereto (collectively, the “Development
Documents”);
iv. Buyer shall have performed all of the obligations required to be performed by
the Buyer under this Agreement or the Development Documents as of the
Closing Date and any further contingencies to Closing set forth in such
Development Documents shall have been satisfied as provided therein,
including without limitation execution and delivery of all Development
Documents that are required to be executed or delivered on the Closing Date;
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4921-5671-9001.7 6
v. Buyer shall have delivered to the Seller all of the Buyer’s Documents
described in Section 14 below;
vi. The Buyer shall have submitted the construction plans for the Development to
the Seller and the City, and the Seller and the City shall have approved the
construction plans pursuant to the Development Documents;
vii. Seller shall have determined, in its reasonable discretion, that Buyer will be
able to receive a building permit for the Development and the Buyer has
submitted all information required for the City to review the application for
the building permit;
viii. The Seller shall have obtained approval of the Lot Adjustment required for the
conveyance of the Property and construction of the Development;
ix. By the Closing Date, the Buyer shall have obtained and provided to the Seller
evidence of all necessary financing for the Development in a form satisfactory
to the Seller in its reasonable discretion;
x. The Seller and the Buyer shall have negotiated and executed the Access
Agreement, and the City shall have adopted the resolution approving the DU
Vacation described above; and
xi. The Seller shall have determined that the Development to be undertaken by
the Buyer on the Property is in conformance with this Agreement and the
development objectives set forth in resolutions of the Seller authorizing the
Development Documents.
xii. Plans for the relocation of the stormwater utilities on the Buyer’s Existing
Property and the Property shall have been mutually approved by Buyer, Seller,
the City and Northern Natural Gas Company (“Northern”), the holder of the
rights to a gas line easement on and under the Buyer’s Existing Property and
the Property, and (2) Buyer, Seller, Northern and the City (if required) shall
have negotiated and executed any required mutually agreeable encroachment
agreement (the “Encroachment Agreement”) allowing for the relocated
stormwater utilities to encroach on the area of the gas line easement in favor
of Northern located on the Buyer’s Existing Property and the Property.
The contingencies set forth in this Section 8(b) are for the benefit of the Seller and may
be waived only by the Seller in its sole and absolute discretion. Notwithstanding any
other provision in this Agreement, a waiver of a contingency must be in writing to be
effective. Prior to the Closing Date, the Seller will give written notice to the Buyer of
the contingencies that have been waived, satisfied, or neither waived nor satisfied.
c. Seller’s and Buyer’s Options. In the event that any of the foregoing contingencies fail
to be satisfied by the Closing Date or the end of the Due Diligence Period, as
applicable:
i. The applicable party benefitting from the contingency(ies) may terminate this
Agreement, and Buyer and Seller shall execute and deliver to each other
documentation effecting the termination of this Agreement; or
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4921-5671-9001.7 7
ii. The applicable party benefitting from the contingency(ies) may waive such
failure and proceed to Closing; provided that the contingencies in Section 8(a)
are solely for the benefit of the Buyer and may be waived only by the Buyer
as provided in therein) and the contingencies in Section 8(b) are solely for the
benefit of the Seller and may be waived only by the Seller as provided therein;
or
iii. Buyer and the Seller may mutually agree to extend the Closing Date.
9. Real Estate Taxes and Special Assessments. Any general real estate taxes payable in the
year in which Closing occurs shall be prorated between the Buyer and the Seller as of the Closing Date.
The Buyer will pay all outstanding special assessments with respect to the Property as of the Effective Date.
10. Representations and Warranties of Seller. As a condition for the Buyer’s receipt of the
Financial Assistance, the Property shall be sold AS-IS. Buyer acknowledges that it has inspected or will
have had the opportunity to inspect the Property and agrees to accept the Property “AS IS” with no right
of set off or reduction in the Purchase Price. Such sale shall be without representation or warranties,
express or implied, either oral or written, made by Seller or any official, employee or agent of Seller with
respect to the physical condition of the Property, including but not limited to, the existence or absence of
petroleum, hazardous substances, pollutants or contaminants in, on, or under, or affecting the Property or
with respect to the compliance of the Property or its operation with any laws, ordinances, or regulations
of any government or other body, except as stated below. Buyer acknowledges and agrees that Seller has
not made and does not make any representations, warranties, or covenants of any kind or character
whatsoever, whether expressed or implied, with respect to income potential, operating expenses, uses,
habitability, tenant ability, or suitability for any purpose, merchantability, or fitness of the Property for a
particular purpose, all of which warranties Seller hereby expressly disclaims, except as stated below. Buyer
is relying entirely upon information and knowledge obtained from the Due Diligence Documents and
Buyer’s own investigation, experience and knowledge obtained from Buyer’s own investigation,
experience, or personal inspection of the Property. Buyer expressly assumes, at closing, all environmental
and other liabilities with respect to the Property and releases and indemnifies Seller from same, whether
such liability is imposed by statute or derived from common law including, but not limited to, liabilities
arising under the Comprehensive Environmental Response, Compensation and Liability Act
(“CERCLA”), the Hazardous and Solid Waste Amendments Act, the Resource Conservation and Recovery
Act (“RCRA”), the federal Water Pollution Control Act, the Safe Drinking Water Act, the Toxic
Substances Act, the Superfund Amendments and Reauthorization Act, the Toxic Substances Control Act,
and the Hazardous Materials Transportation Act, all as amended, and all other comparable federal, state
or local environmental conservation or protection laws, rules or regulations. The foregoing assumption
and release shall survive Closing. All statements of fact or disclosures, if any, made in this Agreement or
in connection with this Agreement, do not constitute warranties or representations of any nature. The
foregoing provision shall survive Closing and shall not be deemed merged into any instrument of
conveyance delivered at Closing.
Notwithstanding the foregoing, Seller represents to Buyer as follows:
a. Unrecorded Agreements. To Seller’s actual knowledge, there are no unrecorded
agreements, undertakings or restrictions which affect the Property.
b. Leases. To the Seller’s actual knowledge, there are no leases or possessory rights of
others regarding the Property.
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4921-5671-9001.7 8
c. Due Diligence Documents. To Seller’s actual knowledge, the Due Diligence
Documents delivered or to be delivered to Buyer hereunder are correct and complete
and do not contain any false information.
d. FIRPTA. Seller is not a “foreign person,” “foreign partnership,” “foreign trust,” or
“foreign estate,” as those terms are defined in Internal Revenue Code Section 1445 and
the regulations promulgated thereunder.
e. No Proceedings. To the Seller’s actual knowledge, there are no legal or administrative
proceedings pending or threatened (i) which would adversely affect Seller’s right to
convey the Property to Buyer as contemplated in this Agreement, or (ii) affecting the
Property. There are no condemnation or eminent domain proceedings pending or, to
Seller’s knowledge, threatened with respect to the Property.
f. Private Sewage Systems; Wells. To the Seller’s knowledge, there are no wells or
private sewage systems located on the Property.
g. Use of Property. To Seller’s knowledge, no methamphetamine production has occurred
on the Property.
h. Current Conditions. Seller shall maintain the Property in its present condition, ordinary
wear and tear excepted.
i. Authority. Seller has full power and authority to enter into this Agreement and to
perform all of its obligations hereunder, and has taken all action required by law, its
governing instruments, or otherwise to authorize the execution, delivery, and
performance of this Agreement and all the deeds, agreements, certificates, and other
documents contemplated herein. This Agreement has been duly executed by and is a
valid and binding agreement of Seller, enforceable in accordance with its terms, except
as enforceability may be limited by equitable principles or by the laws of bankruptcy,
insolvency, or other laws affecting creditors’ rights generally.
j. Entity. Seller is a public body corporate and politic and political subdivision of the
State of Minnesota.
k. The obligations of Buyer under this Agreement are contingent upon the representations
and warranties of Seller contained in this Agreement being true as of the Effective Date
and on the Closing Date as if made on the Closing Date. Each of the foregoing
representations and warranties shall be deemed remade as of the Closing Date and, as
so remade, shall survive the Closing.
11. Due Diligence Documents. Within ten (10) days after the Effective Date, Seller shall
deliver to Buyer copies of the documents set forth on Exhibit C attached hereto and incorporated herein
that are in Seller’s possession or reasonable control (the “Due Diligence Documents”).
12. Closing Costs.
a. The Buyer shall pay all costs of the preparation of a title commitment, including the
search and examination fees and any abstracting fees, if required by the Title Company.
The Buyer shall also pay the fees for standard searches with respect to the Seller and
the Property, all premiums required for issuance of a title insurance policy and any
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4921-5671-9001.7 9
endorsements, all of the costs for the Survey, and one-half (1/2) of all Closing fees or
escrow fees charged by the Title Company. The Seller shall pay all recording fees and
charges related to the filing of any instrument required to make title marketable
including the Deed, any state deed tax, and one-half (1/2) of all Closing fees or escrow
fees charged by the Title Company.
b. Buyer shall also pay the following costs: (1) all costs for obtaining government
approvals that may be required in order to close on the Property or as required for the
Buyer’s intended use of the Property; (2) all fees of the cost of preparation of any
necessary documents for the Lot Adjustment or other subdivision documents; (3)
Buyer’s attorney’s fees; (4) the Seller’s reasonable legal, accounting fees and other out
of pocket costs incurred in connection with this Agreement and the Development
Documents and all tax increment financing approvals as further provided in the
Development Documents as required by the City’s Tax Increment Financing Policy,
provided that the Seller shall pay its own fees and costs in connection with the real
estate closing following execution of this Agreement; and (5) all other costs to be paid
by Buyer as outlined in the Development Documents entered into between the Parties.
13. Seller’s Closing Documents. At Closing, Seller shall execute and/or deliver to Buyer the
following documents (collectively, the “Seller’s Closing Documents”):
a. The Deed conveying the Property to Buyer.
b. A closing/settlement statement prepared by the Title Company to be executed by
Seller, Buyer, and the Title Company at the Closing that accurately describes the
economic terms of the transaction described in this Agreement.
c. A non-foreign affidavit, properly executed, containing such information as is required
by IRC Section 1445(b)(2) and the regulations promulgated thereunder.
d. The TIF Assistance Agreement and the Assessment Agreement (all as defined in the
TIF Assistance Agreement) and any other documents required pursuant to the terms of
the Development Documents.
e. Any executed documents that may be required in the State of Minnesota in order for
the Deed to be recorded on the Closing Date.
f. An affidavit of title with respect to the Property in a form satisfactory to the Title
Company so as to enable the Title Company to remove standard title insurance
exceptions that can be removed with such affidavit.
g. A Well Disclosure Certificate or a statement that the Seller does not know of any wells
on the Property.
h. The Access Agreement.
i. The Encroachment Agreement (if required).
j. The document(s) approving the Lot Adjustment.
k. The Driveway Termination.
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4921-5671-9001.7 10
l. The DU Vacation.
m. Such other documents as may be reasonably required to complete the transaction as set
forth in this Agreement, including affidavits of the Seller and Certificates of Value.
14. Documents to be Delivered by the Buyer. The Buyer agrees to deliver to the Seller the
following documents (the “Buyer’s Documents”), duly executed as appropriate, at Closing:
a. Such affidavits of Buyer, Certificates of Value or other documents as may be
reasonably required in order to complete the transaction contemplated by this
Agreement, including the closing/settlement statement described in Section 13.b.
above.
b. Any documentary evidence required to satisfy the contingencies set forth herein.
c. The TIF Assistance Agreement, the Purchase Price Note, and the Assessment
Agreement (all as defined in the TIF Assistance Agreement) and any other documents
required pursuant to the terms of the Development Documents.
d. The Access Agreement.
e. The Encroachment Agreement (if required).
f. The document(s) approving the Lot Adjustment.
g. The Driveway Termination.
h. The DU Vacation.
i. Such other documents as shall be required to carry out the intent of this Agreement.
15. Casualty or Condemnation. If before the Closing Date any of the improvements on the
Property are destroyed or substantially damaged by fire or any other casualty or any substantial part of the
Property shall be taken by condemnation (including a deed given in lieu thereof), Buyer shall have the
option of (i) enforcing this Agreement (and in such event the insurance proceeds or condemnation award
shall belong to Buyer) or (ii) canceling this Agreement by written notice given within 30 days after Buyer
receives notice of such casualty or condemnation from Seller. If this Agreement is canceled under this
Section, the Earnest Money, or a portion thereof, shall be refunded to Buyer pursuant to Section 5 above,
and the Parties’ obligations hereunder shall be of no further force and effect.
16. Remedies. If either Party defaults under this Agreement, the non-defaulting party shall
have the right to terminate this Agreement by giving written notice to the defaulting party. If the defaulting
party is Seller, and Seller fails to cure such default within 14 days of the date of receipt of such written
notice, this Agreement will terminate unless such default is waived by Buyer. If the defaulting party is
Buyer, Seller may terminate this Agreement only by complying with Minn. Stat. Section 559.21. The
termination of this Agreement shall be the sole and absolute remedy available to the non-defaulting Party
for such default.
17. Commissions. Seller shall be responsible for and shall pay all brokerage commissions due
in connection with this transaction. Specifically, Seller agrees to pay (i) a listing commission of $15,540 to
its broker (Hardin Companies), and (ii) a buyer’s representation fee of $5,000 to the Buyer’s broker
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4921-5671-9001.7 11
(CBRE). These commissions shall be due and payable only upon the successful closing and will be paid on
the Closing Date. Except for the brokers’ fees set forth in the previous sentence, each party agrees that no
other real estate brokers were retained and agrees to indemnify and hold the other party harmless from
anyone else claiming a commission/fee through the indemnifying party.
18. Notices. Any notices required herein shall be deemed given when sent in the U.S. Mail,
either registered or certified, return receipt requested, or by Federal Express or other overnight delivery
service requiring a signature upon receipt, to the parties at the following addresses:
SELLER: The Economic Development Authority
for the City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Attention: Executive Director
BUYER: O’Brien Holdings, LLC
3005 Ranchview Ln N
Plymouth, MN 55447
Attention: Brad Martin
19. Survival. All representations, warranties, indemnities and agreements set forth herein shall
survive the Closing, except as otherwise provided herein.
20. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Minnesota.
21. Assignment. Buyer shall have the right to assign its interest in this Agreement, without the
consent of Seller, to an entity in which Buyer, or one or more of its members, has an ownership interest,
member interest or is otherwise affiliated with. The consent of the Seller shall be required if Buyer assigns
this Agreement to any other third party, such consent not to be unreasonably withheld.
22. Binding Effect. This Agreement is binding upon the Parties and their respective permitted
successors and assigns.
23. Construction. This Agreement shall not be construed more strictly against one Party than
the other, merely by virtue of the fact that it may have been prepared primarily by counsel for one of the
Parties, it being recognized that both Buyer and Seller have contributed substantially and materially to the
preparation of this Agreement.
24. Headings. The headings preceding the text of the sections and subsections hereof are
inserted solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they
affect its meaning, construction or effect.
25. Severability. The invalidity or unenforceability of any term or terms of this Agreement
shall not invalidate, make unenforceable or otherwise affect any other term of this Agreement, and this
Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted,
and in such event, the remaining terms of this Agreement shall remain in full force and effect.
26. Computation of Time. In computing any period of time pursuant to this Agreement, the
day of the act or event from which the designated period of time begins to run will not be included. The
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4921-5671-9001.7 12
last day of the period so computed will be included, unless it is a Saturday, Sunday or federal holiday, in
which event the period runs until the end of the next day which is not a Saturday, Sunday or federal holiday.
27. Time of the Essence. All times, wherever specified herein for the performance by Seller
or Buyer of their respective obligations hereunder, are of the essence of this Agreement.
28. Complete Agreement. This instrument and any exhibits, schedules or addendums attached
hereto contain the entire Agreement of the Parties regarding the subject matter hereof, and supersedes all
prior negotiations, agreements or understandings, whether oral or in writing. This Agreement may not be
changed orally but only by an agreement in writing signed by the Parties.
29. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall constitute an original but all of which, taken together, shall constitute but one and the same
instrument. This Agreement may be executed by DocuSign or delivery of executed signature pages by email
transmission.
Signature page follows
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4921-5671-9001.7 13
IN WITNESS WHEREOF, said Parties hereby execute this Purchase Agreement effective as of
the Effective Date stated above.
SELLER:
THE ECONOMIC DEVELOPMENT
AUTHORITY FOR THE CITY OF ELK
RIVER
By_________________________________
Its President
By_________________________________
Its Executive Director
BUYER:
O’BRIEN HOLDINGS, LLC
By: __________________________________
Its: ___________________________________
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4921-5671-9001.7 A-1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
That property located in the City of Elk River, Sherburne County, Minnesota legally described as:
That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne County, Minnesota, lying
southerly and easterly of the following described line:
Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a curve along the
Southwesterly right-of-way line of Twin Lakes Road an arc distance of 196.58 feet, said curve concave to
the northeast, having a radius of 880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the point
of beginning of said described line; thence southwesterly to a point on the Westerly line of said Lot 1,
477.16 feet northwesterly of the Northwest corner of Lot 2, said Block 1, NORTHSTAR BUSINESS
PARK, and there terminating.
Page 56 of 98
4921-5671-9001.7 B-1
EXHIBIT B
FORM OF QUIT CLAIM DEED
(Top 3 inches reserved for recording data)
QUIT CLAIM DEED
DEED TAX DUE: $ DATE: ________, 2026
ECRV: ________________
(month/day/year)
FOR VALUABLE CONSIDERATION, The Economic Development Authority for the City of Elk River
(insert name of Grantor)
a public body corporate and politic and political subdivision under the laws of Minnesota
, ("Grantor"),
hereby conveys and quitclaims to O’Brien Holdings, LLC
(insert name of Grantee)
a limited liability company under the laws of Minnesota, ("Grantee"),
real property in Sherburne County, Minnesota, legally described as follows:
The property located in the City of Elk River, Sherburne County, Minnesota legally described as:
That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne County, Minnesota, lying southerly and easterly
of the following described line:
Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a curve along the Southwesterly right-
of-way line of Twin Lakes Road an arc distance of 196.58 feet, said curve concave to the northeast, having a radius of
880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the point of beginning of said described line; thence
southwesterly to a point on the Westerly line of said Lot 1, 477.16 feet northwesterly of the Northwest corner of Lot 2,
said Block 1, NORTHSTAR BUSINESS PARK, and there terminating.
Check here if all or part of the described real property is Registered (Torrens)
together with all hereditaments and appurtenances belong thereto, subject to the Right of Re-Entry for Breach of
Condition Subsequent in favor of Grantor which is described on Exhibit A attached hereto and the form of Certificate of
Release described on Exhibit B attached hereto.
Check applicable box:
X The Seller certifies that the Seller does not
know of any wells on the described property.
A well disclosure certificate accompanies this
document (If electronically filed, insert WDC
number: __________________).
I am familiar with the property described in this
instrument and I certify that the status and
number of wells on the described real property
The Economic Development Authority for the City of Elk River
By:
Matthew T. Westgaard
Its: President
By:
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4921-5671-9001.7 B-2
have not changed since the last previously
filed well disclosure certificate.
Brent O’Neil
Its: Executive Director_____
State of Minnesota, County of SHERBURNE
This instrument was acknowledged before me on , 20__ by Matthew T. Westgaard, as
President and by Brent O’Neil, as the Executive Director of the Economic Development Authority for the City of Elk
River, a public body corporate and politic and political subdivision under the Constitution and laws of the State of
Minnesota, on behalf of the Authority.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
(insert name and address)
Kutak Rock LLP (GAF)
60 South Sixth Street, Suite 3400
Minneapolis, MN 55402
TAX STATEMENTS FOR THE REAL PROPERTY
DESCRIBED IN THIS INSTRUMENT SHOULD BE
SENT TO:
(insert name and address of Grantee to whom tax
statements should be sent)
O’Brien Holdings, LLC
3005 Ranchview Ln N
Plymouth, MN 55447
Page 58 of 98
4921-5671-9001.7 B-3
EXHIBIT A
TO QUIT CLAIM DEED
EXECUTED BY
THE ECONOMIC DEVELOPMENT AUTHORITY
FOR THE CITY OF ELK RIVER, GRANTOR,
IN FAVOR OF O’BRIEN HOLDINGS, LLC, GRANTEE.
THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, Grantor,
is conveying the property described in the attached Quit Claim Deed (the “Property”) to O’BRIEN
HOLDINGS, LLC, Grantee, subject to a right of re-entry for breach of conditions subsequent in favor of
Grantor. The condition subsequent is that, barring any Unavoidable Delays, the Grantee shall have
commenced, or caused to be commenced, construction of the foundation of the Minimum Improvements,
as defined in that certain TIF Assistance Agreement between the Grantor, the City of Elk River (the “City”),
and Grantee dated as of [____________], 2026 (the “TIF Assistance Agreement”), by March 31, 2027. If
Grantee breaches the condition subsequent, Grantee shall re-convey the Property back to Grantor. If
Grantee fails to re-convey the Property to the Grantor, Grantor may elect to exercise its right of reentry by
commencing an action in Sherburne County District Court to establish the breach of the condition
subsequent. If Grantor establishes a breach of the condition subsequent, title to and the right to possession
of the Property, and title to all improvements located thereon reverts to Grantor, and Grantee is not entitled
to any compensation from Grantor for the value of any improvements Grantee has made to the Property.
The Grantee shall notify the Grantor when the Grantee has commenced, or caused to be
commenced, construction of the foundation of the Minimum Improvements on the Property in accordance
with permits issued by the City or the Grantor. The Grantor shall, within 20 days after such notification,
inspect the Property in order to determine whether the Grantee has commenced construction of the
foundation of the Minimum Improvements in accordance with permits issued by the City or the Grantor. If
the Grantor determines the Grantee has commenced construction of the foundation of the Minimum
Improvements in accordance with permits issued by the City or the Grantor, the Grantor will furnish to the
Grantee a Certificate of Release in the form attached hereto as Exhibit B, releasing the Property from the
right-of-reentry
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4921-5671-9001.7 1
EXHIBIT B
TO QUIT CLAIM DEED EXECUTED BY
THE ECONOMIC DEVELOPMENT AUTHORITY
FOR THE CITY OF ELK RIVER, GRANTOR,
IN FAVOR OF O’BRIEN HOLDINGS, LLC, GRANTEE.
CERTIFICATE OF RELEASE
Recitals.
Recital One. O’Brien Holdings, LLC, a Minnesota limited liability company (the
“Grantee”) is the owner of the real property legally described in Exhibit A hereto (the “Property”).
Recital Two. Grantee acquired title to the Property subject to a right of re-entry for breach
of conditions subsequent in favor of the Grantor (the “Right of Reentry”) set forth in a deed from
The Economic Development Authority for the City of Elk River (the “Grantor”) dated __________
__, 2026 and recorded in the office of the Sherburne County Registrar of Titles /Sherburne County
Recorder on ___________________ as Document No. ______________ (the “Deed”).
Recital Three. The Grantee is a party to a TIF Assistance Agreement between the Grantor,
the City of Elk River, Minnesota (the “City”), and the Grantee, dated _____________ __, 2026
(such agreement, as the same may be modified or amended, the “TIF Assistance Agreement”)
(capitalized terms utilized herein and not separately defined shall have the meanings ascribed to
them in the TIF Assistance Agreement).
Recital Four. Pursuant to the TIF Assistance Agreement the Grantee is obligated to have
commenced, or caused to be commenced, by March 31, 2027, construction of the foundation of
the Minimum Improvements in accordance with permits issued by the City.
Recital Five. The Grantor’s Right of Re-entry would be triggered by the Grantee’s failure
to have commenced, or caused to be commenced, by March 31, 2027, construction of the
foundation of the Minimum Improvements in accordance with permits issued by the City.
Recital Six. The Grantee has represented to the Grantor that the Grantee has commenced,
or caused to be commenced, by March 31, 2027, construction of the foundation of the Minimum
Improvements in accordance with permits issued by the City and has requested this Certificate of
Release from the Grantor.
Certificate of Release. The Grantor hereby certifies that the Grantee has satisfied its
obligations with respect to commencing, or causing to be commenced, by March 31, 2027,
construction of the foundation of the Minimum Improvements in accordance with permits issued
by the City. The Grantor further acknowledges and agrees that the Property is released from the
Right of Reentry.
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4921-5671-9001.7 2
IN WITNESS WHEREOF, the Grantor has caused this certificate to be duly executed on its behalf
this ____ day of ____________, 20___.
.
THE ECONOMIC DEVELOPMENT AUTHORITY FOR
THE CITY OF ELK RIVER
By_________________________________
Its President
By_________________________________
Its Executive Director
STATE OF MINNESOTA
COUNTY OF SHERBURNE
This instrument was acknowledged before me on , 20__ by
_____________, as President and by _____________, as the Executive Director of the Economic
Development Authority for the City of Elk River a public body corporate and politic and political
subdivision under the Constitution and laws of the State of Minnesota, on behalf of the Authority.
___________
Notary Public
DRAFTED BY:
Kutak Rock LLP (GAF)
60 South Sixth Street, Suite 3400
Minneapolis, MN 55402
Page 61 of 98
4921-5671-9001.7 3
EXHIBIT A
TO CERTIFICATE OF RELEASE
LEGAL DESCRIPTION OF THE PROPERTY
The property located in the City of Elk River, Sherburne County, Minnesota legally described as:
That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne County, Minnesota, lying
southerly and easterly of the following described line:
Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a curve along the
Southwesterly right-of-way line of Twin Lakes Road an arc distance of 196.58 feet, said curve concave to
the northeast, having a radius of 880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the point
of beginning of said described line; thence southwesterly to a point on the Westerly line of said Lot 1,
477.16 feet northwesterly of the Northwest corner of Lot 2, said Block 1, NORTHSTAR BUSINESS
PARK, and there terminating.
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4921-5671-9001.7 C-1
EXHIBIT C
DUE DILIGENCE DOCUMENTS
Copies of the following in Seller’s possession or control and related to the Property:
1. Copies of all agreements affecting the Property, including any assignable warranties;
2. Grading Plans
3. Phase I
4. Utility plans.
Page 63 of 98
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.3
Meeting Date
August 17, 2026
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Resolution 26-08 Adopting 2027 Budget
Reviewed by
Cal Portner
Action Requested
Approve, by motion, the attached resolution adopting the budget for 2027 and recommending $453,500 for
inclusion in the 2027 levy.
Background/Discussion
Following the budget workshop, adjustments have been made to the 2027 budget as presented for adoption.
The proposed expenditures for 2027 total $533,000 as compared to $514,000 for 2026, an increase of 3.7%.
Many items remain flat or see modest changes.
With interest income proposed at $75,000 and other revenue of $4,500, a levy of $453,500 is needed to
balance the budget. This is a year-over-year increase of $23,650, or 5.5%.
Financial Impact
Approval of this item sets the budget for 2027 at $533,000 and recommends to the City Council that
$453,500 be included in the Preliminary Levy which will be considered in September.
Mission/Policy/Goal
The EDA adopts its annual budget prior to September 30 each year.
Attachments
1. Resolution 26-08: 2027 Budget
2. Performance Measures and Goals
3. EDA 2027 Budget
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City of Elk River
Economic Development Authority
Resolution 26-08
A Resolution of the City of Elk River Economic Development Authority, Establishing the Tax
Levy for The Elk River Economic Development Authority for the City of Elk River, Minnesota
WHEREAS, Minnesota Statutes §469.107, Subd. 1, authorizes the Elk River Economic Development
Authority to levy an amount not to exceed .01813 percent of the estimated market value within the city to
be used for economic development purposes; and,
WHEREAS, the Elk River Economic Development Authority has considered at its meeting on August 17,
2026, its 2027 budget and levy request; and,
WHEREAS, the Elk River Economic Development Authority has adopted and approved its budget and
recommended final levy and will forward such to the City of Elk River pursuant to Minnesota Statutes
§469.100, Subd. 2.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Elk River,
Minnesota, as follows: that it hereby adopts a budget for 2027 in the amount of $533,000, as attached,
and requests the City Council of the City of Elk River to levy a tax in the amount of $453,500 for the year
2027 for the benefit of the Authority to be used for Economic Development Authority purposes as
provided by the statute.
Passed and adopted this 17th day of August, 2026.
Matt Westgaard, EDA President
ATTEST:
Brent O’Neil, EDA Executive Director
Page 65 of 98
Division:
Completed by:
Date:
Performance Measure 2023 Actual 2024 Actual 2025 Actual 2026 Estimated 2026 YTD 2027 Projected
Business Engagements - all substantive
meetings, interactions, etc. with Elk River
businesses and companies 21 40 42 50 20 45
Promote businesses on social media - Biz
Reels, Development Minute N/A N/A 18 Not Included 7 20
Facilitate site visits to Elk River
6 4 2 5 4 5
Commercial/industrial permit value
$51,000,000 $24,000,000 $55,000,000 $50,000,000 $12,000,000 $50,000,000
Net impressions from placed ads
150,000 350,000 300,000 200,000 50,000 200,000
EDA website engaged sessions (formerly
EDA website traffic; all number have been
revised except 2026 est.)2,400 3,400 4,800 7000 (old measure)2,000 5,000
Performance Measures & Goals for 2027
Economic Development
Brent O'Neil, Josh Mollan
June 1, 2026
Division Goal Goal Objective/Task
Set target fund balance levels to maintain sufficient reserves and
availability of funds in anticipation of current and future large
expenditures.
Set a target EDA fund balance based on the following: minimum operating reserve - 50% of budget; wetland bank -
$400,000 to $500,000 (currently $415,000 accrued); property acquisition and new programs (loans, grants) -
$2,000,000 to $3,000,000. Total range: $2,650,000 to $3,750,000. 5/31/26 fund balance: $2,642,000.
Plan for industrial growth areas and position for large project
recruitment
Identify areas suitable for C/I land expansion and how to best facilitate private investment. This can include studies
to determine how and when utility infrastructure can be implemented as well as tools for bringing more land on-line,
including private and public property.
Maintain an inventory of private and public properties available for
future development
Keep a detailed and regularly-updated inventory of properties which may be suitable for development and likely
available to promote to business prospects. In addition to utilizing the MNCAR system for actively available
properties, also identify properties in coordination with owners that could be identified and shared with interested
parties. Enhance the web-based portal for disseminating available private property not otherwise participating in a
listing service.
Enhance programs that promote the community image
Play a leading role in initiatives and activities which maintain beautification efforts and support Elk River's aesthetic
image. Support beautification efforts, public art, events, and investments that attract visitors to Elk River. Direct
investment in certain programs may lead to enhanced community perception and increase in visitors to Elk River.
Partner with peer organizations
Continue to work with Sherburne County, Elk River Area Chamber of Commerce, GreaterMSP, DEED, ERMU, and
ISD 728. Consider regional marketing partnerships. Consider a prominent role in the efforts to launch Region 7W as
a certified economic development organization.
Support Elk River's existing businesses through relationship
building, programmatic offerings, and high quality city services
Continue to communicate with businesses on factors impacting success, growth, and expansion, including BRE
visits and other interactions. Provide technical assistance as necessary and through feedback ensure economic
development programs of the city are in line with business needs and utilization. Develop and modify programming
by utilizing feedback from the business community. Consider an annual or semi-annual forum of local businesses to
complement business engagements and foster additional outreach to the business community.
Attract new business development to Elk River to build the city's
economic vibrancy, job offerings and tax base
Market and promote the community. Make contact with prospective businesses and siting professionals, specifically
highlighting the community's strengths. Market existing properties (EDA and private) and capture opportunities for
land development and assembly. Continue focus on the EDA strategic plan areas: precision manufacturing,
renewable energy, regional distribution, biomedical manufacturers, and health care services. Strengthen efforts in
retail recruitment including outreach efforts and increasing suitability of retail sites for investment.
Maintain and reposition financial incentives to enhance economic
development
Leverage city programs, MnDEED monies, the Initiative Foundation, Sherburne County Revolving Loan Fund and
other financial tools and incentives. Take a "right-sizing" approach to maximize private investment relative to public
participation. Evaluate programs for relevance and capacity to serve current community needs; modify as
necessary.
Support Downtown Street Reconstruction (2027)
Be active in the process leading into the full design and staging plan. Consider financial tools which could be
implemented on short notice if needed to support businesses. Market as needed (consider the Together Elk River
branding) to promote visitor activity downtown during this time.
Implement marketing and other activities which boost visitor traffic to Elk River for shopping, recreation, events, and
enjoyment. Recruit hotel and restaurant investment in the city. Implement structured destination marketing.Promote visitor attraction to Elk River
Page 66 of 98
EDA
2023 2024 2025 2026 6/30/2026 2027 Increase/%
ACTUAL ACTUAL ACTUAL BUDGET YTD PRELIMINARY (Decrease)Change
REVENUES
920-3-0000-3111 Property Taxes 392,447 423,636 426,961 429,850 0 453,500 23,650 5.5%
920-3-0000-3322 MV Credit 232 203 223 0 0 0 0 0.0%
920-3-0000-3342 Other Local Grants 0 0 1,600 0 0 0 0 0.0%
920-3-0000-3621 Interest Income 51,185 76,760 72,813 75,000 30,311 75,000 0 0.0%
920-3-0000-3626 Contributions 0 6,400 0 0 0 0 0 0.0%
920-3-0000-3629 Miscellaneous Revenue 0 39,944 336 0 64 0 0 0.0%
920-3-0000-3910 Sale of Assets 0 317,267 0 0 0 0 0 0.0%
920-3-0000-3930 Transfer-Development 0 0 0 0 0 0 0 0.0%
920-3-0000-3949 Transfer-HRA 4,000 4,000 4,000 4,500 0 4,500 0 0.0%
Total Revenues 447,865 868,211 505,934 509,350 30,375 533,000 23,650 4.6%
HRA Personal Services
920-4-6210-4101 Regular Pay 115,978.96 124,852.05 130,769.83 138,000.00 50,987.54 161,750.00 23,750 17.2%
920-4-6210-4103 Part-time Pay 12,600.00 12,600.00 12,600.00 12,600.00 5,250.00 12,600.00 0 0.0%
920-4-6210-4104 PERA 8,788.49 9,438.96 10,022.59 10,550.00 3,910.18 12,300.00 1,750 0.0%
920-4-6210-4105 FICA 7,698.33 7,700.42 8,185.52 9,250.00 3,230.56 10,600.00 1,350 14.6%
920-4-6210-4107 Medicare 1,826.51 1,822.68 1,977.26 2,200.00 782.95 2,550.00 350 15.9%
920-4-6210-4108 Insurance 24,105.60 28,706.40 18,424.80 31,100.00 7,560.00 18,500.00 (12,600)-40.5%
920-4-6210-4109 Workers Comp 473.00 642.57 541.00 650.00 284.00 650.00 0 0.0%
920-4-6210-4112 PFML 0.00 0.00 0.00 800.00 242.45 850.00 50 0.0%
Total Personal Services 171,470.89 185,763.08 182,521.00 205,150.00 72,247.68 219,800.00 14,650 7.1%
Supplies
920-4-6210-4201 Office Supplies 1,718.68 430.21 288.32 2,000.00 264.12 1,500.00 (500)-25.0%
920-4-6210-4212 Fuels & Lubes 0.00 5.58 0.00 50.00 0.00 0.00 (50)-100.0%
Total Supplies 1,718.68 430.21 288.32 2,000.00 264.12 1,500.00 (500)-25.0%
Services & Charges
920-4-6210-4304 Legal Fees 10,785.50 7,516.25 703.50 10,000.00 0.00 10,000.00 0 0.0%
920-4-6210-4319 Professional Services 0.00 0.00 0.00 25,000.00 0.00 25,000.00 0 0.0%
920-4-6210-4321 Telephone 0.00 0.00 720.00 700.00 0.00 750.00 50 7.1%
920-4-6210-4322 Postage 39.72 0.00 2.44 100.00 12.72 100.00 0 0.0%
920-4-6210-4331 Travel, Conferences & Schools 5,946.10 3,894.46 7,002.22 12,500.00 739.75 10,500.00 (2,000)-16.0%
920-4-6210-4349 Advertising/Marketing 30,913.92 25,742.33 20,380.31 115,500.00 10,239.72 112,300.00 (3,200)-2.8%
920-4-6210-4359 Publishing 1,070.20 318.20 77.40 1,000.00 269.00 750.00 (250)-25.0%
920-4-6210-4361 Insurance 92.62 104.00 108.00 300.00 54.00 150.00 (150)0.0%
920-4-6210-4404 Software Services 13,025.85 16,632.23 4,182.69 17,500.00 11,052.32 15,500.00 (2,000)-11.4%
920-4-6210-4433 Dues & Subscriptions 4,969.13 7,350.00 15,749.03 6,200.00 5,090.00 6,250.00 50 0.8%
920-4-6210-4440 Miscellaneous 3,442.33 23,346.76 3,027.44 18,500.00 3,000.00 18,500.00 0 0.0%
Total Services & Charges 70,285.37 84,904.23 51,953.03 207,300.00 30,457.51 199,800.00 (7,500)-3.6%
Capital Outlay
920-4-6210-4510 Land 0.00 0.00 0.00 50,000.00 0.00 60,000.00 10,000 0.0%
920-4-6210-4560 Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0 0.0%
Total Capital Outlay 0.00 0.00 0.00 50,000.00 0.00 60,000.00 10,000 0.0%
TOTAL EDA EXPENDITURES 243,474.94 271,097.52 234,762.35 464,450.00 102,969.31 481,100.00 16,650 3.6%
PLUS TRANSFER TO CITY 51,900
TOTAL EXPENDITURES 2027 514,000.00 533,000.00 19,000.00 3.7%
Page 67 of 98
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.4
Meeting Date
August 17, 2026
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Resolution 26-09: Adopting the 2027 levy for
repayment of 2013 Refunding Bonds (YMCA)
Reviewed by
Cal Portner
Action Requested
Approve, by motion, Resolution 26-09 establishing the 2027 referendum tax levy of $519,680 for debt service
on the YMCA facility.
Background/Discussion
In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased to the
YMCA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007 bonds. The
refunding created interest savings and set the maturity of the bonds for 2033.
Under the lease agreement with the YMCA, the EDA pays two-thirds of the debt service, and the YMCA pays
the remaining one-third. The EDA portion of the scheduled bond payment for 2027 is $494,933. The bond
issuance requirements necessitate funding the annual payments with a coverage ratio of 1.05, or 105% of the
bond payment. Therefore, the required levy for the 2027 bond payment is $519,680.
Financial Impact
The required levy for bond payments in 2027 is $519,680.
Mission/Policy/Goal
Support Elk River's existing businesses through relationship building, programmatic offerings, and high-quality
city services.
Attachments
1. Resolution 26-09: Levy YMCA Bond
Page 68 of 98
City of Elk River
Economic Development Authority
Resolution 26-09
A Resolution of the City of Elk River Economic Development Authority Establishing the
Referendum Tax Levy as Approved by Voters for a Recreational Facility to be leased to the
YMCA
WHEREAS, on September 12, 2006, the voters of the City of Elk River approved a referendum pledging
the City’s full faith, credit, and resources to $12,000,000 of bonds for a recreational facility to be leased to
the YMCA; and
WHEREAS, in 2013, the EDA issued $9,685,000 cross-over refunding bonds to redeem the Series 2007
Bonds on February 1, 2017.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Elk River,
Minnesota, as follows: that it hereby levies a tax of $519,680 for taxes payable in 2027 for the purposes
of funding the debt service on $9,685,000 of bonds as approved by voters to build a recreational facility
to be leased to the YMCA.
Passed and adopted this 17th day of August, 2026.
Matt Westgaard, EDA President
ATTEST:
Brent O’Neil, EDA Executive Director
Page 69 of 98
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.5
Meeting Date
August 17, 2026
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Agreement for a Mutual Driveway Easement at
17610 Tyler Street NW
Reviewed by
Cal Portner
Action Requested
Approve, by motion, authorizing a mutual driveway agreement with O'Brien Holdings.
Background/Discussion
The EDA and O'Brien Holdings desire to create a mutual access serving both EDA and O'Brien properties as
part of the transaction in which O'Brien will acquire a portion of the property at 17610 Tyler St. NW. This
easement ensures both parties have sufficient access to their respective parcels. Under the terms of the
agreement, a roadway surface, approximately 180 feet long and 36 feet wide, will be constructed by CDI for
the benefit of both properties. The easement is 200 feet by 44 ft to account for variations in the final roadway
layout. As mutual access, the EDA will be responsible for 50% of the costs in this easement; however, until
the EDA develops its remaining property or five years, whichever is earlier, CDI will be responsible for 100%
of maintenance.
Financial Impact
The EDA's share of the construction cost is estimated at $30,000.
Mission/Policy/Goal
Support industrial growth.
Attachments
1. Mutual Driveway Easement
2. cdi eda
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.6
Meeting Date
August 17, 2026
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Resolution 26-10 Accepting a Deed from the City of
Elk River - 17610 Tyler St. NW
Reviewed by
Cal Portner
Action Requested
Approve, by motion, Resolution 26-xx accepting a quit claim deed from the City of Elk River for Lot 1, Block
1 Northstar Business Park.
Background/Discussion
As part of the EDA's sale of property in Northstar Business Park to O'Brien Holdings, the title commitment
identified potential issues with the title. Those issues are planned to be addressed by the City Council. One of
those issues will be resolved by the City providing a quit claim deed to the EDA for this property. This
requested action by the EDA acknowledges its acceptance of the quit claim deed.
Financial Impact
N/A
Mission/Policy/Goal
Support industrial growth.
Attachments
1. RES 26-XX: Conveyance of Property
Page 87 of 98
City of Elk River
Economic Development Authority
Resolution 26-__
A Resolution of the Economic Development Authority in and for the City of Elk River Accepting
Conveyance of Real Property
WHEREAS, the City of Elk River (“City”) and The Economic Development Authority in and for the City of
Elk River (“EDA”) each own a portion of property as legally described in Exhibit A attached hereto
(“Property”);
WHEREAS, the EDA desires to convey a portion of the Property to an abutting property owner for
expansion of an existing building and a parking lot to serve the abutting property;
WHEREAS, the City agrees to convey the Property to the EDA and the EDA desires to accept
conveyance of the Property from the City by quit claim deed to clear title to the Property of the City’s
interest in the Property.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of The Economic Development
Authority in and for the City of Elk River that the acquisition of the Property from the City by quit claim
deed is hereby approved.
Approved by the Board of Commissioners of the Economic Development Authority of the City of Elk
River this 17 day of August, 2026.
Matt Westgaard, President
ATTEST:
Brent O’Neil, Executive Director
Page 88 of 98
EXHIBIT A
That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne County, Minnesota, lying northerly
and westerly of the following described line:
Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a curve along the
Southwesterly right-of-way line of Twin Lakes Road an arc distance of 196.58 feet, said curve concave to
the northeast, having a radius of 880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the
point of beginning of said described line; thence southwesterly to a point on the Westerly line of said Lot
1, 477.16 feet northwesterly of the Northwest corner of Lot 2, said Block 1, NORTHSTAR BUSINESS PARK,
and there terminating.
Page 89 of 98
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.7
Meeting Date
August 17, 2026
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Terminating a Mutual Access Easement Agreement
at 17610 Tyler Street NW
Reviewed by
Cal Portner
Action Requested
Approve, by motion, an agreement terminating a mutual access agreement at 17610 Tyler Street NW.
Background/Discussion
The EDA shares a property boundary at 17610 Tyler Street NW with O'Brien Holdings at 17560 Tyler Street
NW. For many years, the properties maintained a mutual access easement along the shared property line. As
the EDA intends to sell a portion of its property to O'Brien, as well as adopt a new mutual access easement
on the new shared property line, the existing mutual access will be obsolete and no longer necessary.
Financial Impact
N/A
Mission/Policy/Goal
Support industrial growth.
Attachments
1. Termination of Mutual Driveway Easement
Page 90 of 98
TERMINATION OF MUTUAL DRIVEWAY EASEMENT AGREEMENT
THIS TERMINATION OF MUTUAL DRIVEWAY EASEMENT AGREEMENT
(“Agreement”) is made ___________, 2026, by O’Brien Holdings, LLC, a Minnesota limited
liability company (“O’Brien”) and The Economic Development Authority of the City of Elk
River, a public body corporate and politic and political subdivision of the State of Minnesota (the
“EDA”).
RECITALS
A. O’Brien is the fee owner of real property located in Sherburne County,
Minnesota, and legally described as follows:
Lot 2, Block 1, NORTHSTAR BUSINESS PARK (“Lot 2”)
and
That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne
County, Minnesota, lying southerly and easterly of the following described line:
Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a
curve along the Southwesterly right-of-way line of Twin Lakes Road an arc
distance of 196.58 feet, said curve concave to the northeast, having a radius of
880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the point of
beginning of said described line; thence southwesterly to a point on the Westerly
line of said Lot 1, 477.16 feet northwesterly of the Northwest corner of Lot 2,
said Block 1, NORTHSTAR BUSINESS PARK, and there terminating (the
“South Part of Lot 1”).
(Lot 2 and the South Part of Lot 1 are contiguous parcels and are collectively
referred to herein as the “O’Brien Property”).
B. The EDA is the fee owner of real property located in Sherburne County,
Minnesota, and legally described as follows:
Page 91 of 98
2
That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne
County, Minnesota, lying northerly and westerly of the following described line:
Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a
curve along the Southwesterly right-of-way line of Twin Lakes Road an arc
distance of 196.58 feet, said curve concave to the northeast, having a radius of
880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the point of
beginning of said described line; thence southwesterly to a point on the Westerly
line of said Lot 1, 477.16 feet northwesterly of the Northwest corner of Lot 2,
said Block 1, NORTHSTAR BUSINESS PARK, and there terminating (the
“North Part of Lot 1” or the “EDA Property”).
C. O’Brien and EDA are parties to that certain Mutual Driveway Easement
Agreement dated November 21, 2005, recorded December 31, 2005, in the office of the
Sherburne County Recorder as Document No. 609811 (the “Driveway Easement”). At the time
the Driveway Easement was executed by O’Brien and the EDA, O’Brien owned all of Lot 2,
Block 1, NORTHSTAR BUSINESS PARK and the EDA owned all of Lot 1, Block 1,
NORTHSTAR BUSINESS PARK. The Easement Area described in the Driveway Easement
was located 12.5 feet on either side of part of the common boundary line between Lots 1 and 2,
Block 1, NORTHSTAR BUSINESS PARK (said common boundary line being the north line of
said Lot 2 and the south line of said Lot 1) and provided each of O’Brien and the EDA access to
their respective parcels that were contiguous to the common boundary line.
D. Effective as of the date of this Agreement, (i) the EDA has conveyed to O’Brien
fee title to the South Part of Lot 1, (ii) the EDA no longer owns real property that is contiguous
to the Easement Area, (iii) O’Brien owns fee title to the entire Easement Area and (iv) the EDA
no longer requires the use of the Easement Area for access to real property owned by the EDA,
including the above referenced EDA Property.
E. O’Brien and EDA desire to terminate the Driveway Easement according to the
terms of this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt of which is
hereby acknowledged, O’Brien and EDA agree as follows:
1. Incorporation of Recitals. The Recitals stated above are incorporated herein by
reference. Capitalized terms used in this Agreement shall have the meanings given such terms in
the Driveway Easement unless the context herein requires otherwise.
2. Termination of Driveway Easement. The Driveway Easement, including all
rights and obligations of O’Brien and EDA in connection with the easements created therein, is
terminated in its entirety, is of no further force or effect, and no longer burdens the O’Brien
Property.
3. Counterparts. This Agreement may be executed in counterparts.
Page 92 of 98
3
IN WITNESS WHEREOF, O’Brien and EDA have hereunto set their hands the day and
year first above written.
O’Brien Holdings, LLC
By:
Its:
The Economic Development Authority of
the City of Elk River
By:
Its:
By: ________________________________
Its: _____________________________
STATE OF MINNESOTA )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this _____ day of , 2026,
by , the of O’Brien Holdings, LLC, a Minnesota
limited liability company, on behalf of the limited liability company.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this _____ day of _ , 2026,
by and _________________, respectively the President and Executive
Director of The Economic Development Authority of the City of Elk River, a public body
corporate and politic and political subdivision of the State of Minnesota, on behalf of the body
corporate and politic.
Notary Public
DRAFTED BY:
Henson & Efron, P.A.
225 South Sixth Street
Suite 1600
Minneapolis, MN 55402
(612) 339-2500
Page 93 of 98
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.8
Meeting Date
August 17, 2026
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Granting a Drainage and Utility Easement
Reviewed by
Cal Portner
Action Requested
Approve, by motion, the grant of permanent utility easement to the City of Elk River.
Background/Discussion
As part of the boundary line adjustment of Lot 1, Block 1 Northstar Business Park, standard city practice
would necessitate placing a drainage and utility easement along the property line. Because this property line
adjustment is occurring outside the platting process and therefore cannot be granted through a plat, the
easement can be put in place through a grant of easement, as attached.
Financial Impact
N/A
Mission/Policy/Goal
Support industrial growth.
Attachments
1. Grant of Easement (Easement B) to the City
Page 94 of 98
1
239974v1
(Reserved for recording)
GRANT OF PERMANENT EASEMENT
FOR DRAINAGE AND UTILITY PURPOSES
THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
ELK RIVER, a public body corporate and politic under the laws of the State of Minnesota (“EDA”)
("Grantor"), in consideration of One Dollar ($1.00) and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, does hereby grant unto the CITY OF ELK
RIVER, a Minnesota municipal corporation, the Grantee, hereinafter referred to as the "City", its
successors and assigns, forever, a permanent easement for public drainage and utility purposes over,
on, across, under and through the land situated in the County of Sherburne, State of Minnesota,
legally described on the attached Exhibit “A” and depicted on the attached Exhibit “B” (the
"Easement Premises").
INCLUDING the rights of the City, its contractors, agents, servants, and assigns, to enter upon
the Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain
said public drainage and utility systems over, across, on, under, and through the Easement Premises,
together with the right to grade, level, fill, drain, pave, and excavate the Easement Premises, and the
further right to remove trees, bushes, undergrowth, and other obstructions interfering with the
location, construction, and maintenance of said public drainage and utility systems.
The above-named Grantor, for itself, its successors, and assigns, does covenant with the City,
its successors and assigns, that it is well seized in fee title of the Easement Premises; that it has the
sole right to grant and convey the easement to the City; that there are no unrecorded interests in the
Easement Premises; and it will indemnify and hold the City harmless for any breach of the foregoing
covenants.
Page 95 of 98
2
239974v1
IN TESTIMONY WHEREOF, the Grantor hereto has signed this easement this _____ day
of ______________, 2026.
GRANTOR:
THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
ELK RIVER
By:
Brent O’Neil
Its Executive Director
By:
Matt Westgaard
Its Chair
STATE OF MINNESOTA )
)ss.
COUNTY OF ____________ )
The foregoing instrument was acknowledged before me this ____________ day of
_________________, 2026, by Brent O’Neil, the Executive Director, and by Matt Westgaard, the
Chair of THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
ELK RIVER, a public body corporate and politic under the laws of the State of Minnesota, on behalf
of said entity.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: (651) 452-5000
AMP/smt
Page 96 of 98
3
239974v1
EXHIBIT “A”
TO
GRANT OF PERMANENT DRAINAGE AND UTILITY EASEMENT
Easement Description
An easement for drainage and utility purposes, 20 feet in width, the centerline of said easement
described as follows:
Commencing at the Northeasterly corner of Lot 1, Block 1, NORTHSTAR BUSINESS PARK;
thence southeasterly on a curve along the Southwesterly right-of-way line of Twin Lakes Road an
arc distance of 196.58 feet, said curve concave to the northeast, having a radius of 880.21 and a delta
angle of 12 degrees 47 minutes 45 seconds, to the point of beginning of said described line; thence
southwesterly to a point on the Westerly line of said Lot 1, 477.16 feet northwesterly of the
Northwest corner of Lot 2, said Block 1, NORTHSTAR BUSINESS PARK, and there terminating.
Page 97 of 98
4
239974v1
EXHIBIT “B”
TO
GRANT OF PERMANENT DRAINAGE AND UTILITY EASEMENT
Easement Depiction
Page 98 of 98