EDA RES 26-07city of
Elk
River
City of Elk River
Economic Development Authority
Resolution 26-07
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
-oject.
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 "Developerjl, 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.
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, ai
accordingly, the TIF Assistance Agreement and Purchase Agreement have been re -submitted to the Boaru
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 ar
appropriate and such modifications thereof, deletions therefrom and additions thereto as may L
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.
Approved by the Board of Commissioners of the Economic Development Authority of the City of Elk
River this 17 day of August, 2026. f, a
nifkr�Vadier, EDA Vice President
ATTEST:
f
Brent O'Neil, Executive Dir ctor