RES 26-52ver
City of Elk River
City Council
Resolution 26-52
A Resolution of the City Council of the City of Elk River a TIF assistance
agreement with O'Brien Holdings, LLC
BE IT RESOLVED BY the City Council (the "Council") of the City of Elk River, Minnesota
(the "City") 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
Economic Development Authority for the City of Elk River, Minnesota (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"), underwhich the Authoritywill conveytothe 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
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Assistance Agreement.
1.04. The City hereby finds that the execution of the TIF Assistance Agreement
and performance of the City's obligations thereunder are in the best interest of the City
and its residents.
1.05. The City Council previously approved a form of the TIF Assistance
Agreement on May 4, 2026 after a duly noticed public hearing; provided, however,
the parties have renegotiated certain terms of the TIF Assistance Agreement, and
accordingly, the TIF Assistance Agreement has been re -submitted to the City Council
for its approval.
Section 2. Agreement Approved.
2.01 The Council approves the TIF Assistance Agreement in substantially
the form presented to the Council, together with any related documents necessary in
connection therewith, including without limitation all documents, exhibits,
certifications, or consents referenced in or attached to the TIF Assistance Agreement
including the assessment agreement and the TIF Note (the "Development
Documents").
2.02. The Council hereby authorizes the Mayor and City Clerk, in their
discretion and at such time, if any, as they may deem appropriate, to execute the
Development Documents on behalf of the City, and to carry out, on behalf of the City,
the City's obligations thereunder when all conditions precedent thereto have been
satisfied. The Development Documents shall be in substantially the form on file with
the City 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 City 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 City. The
execution of any instrument by the appropriate officers of the City 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 Council by any duly designated acting official, or by
such other officer or officers of the Council as, in the opinion of the City Attorney, may
act on their behalf. Upon execution and delivery of the Development Documents, the
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officers and employees of the Council are hereby authorized and directed to take or
cause to be taken such actions as may be necessary on behalf of the Council 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.
Passed and adopted this 17th day of August 2026.
ATTEST:
Justin un ord, City erk
e Beyer, Acting Mayor
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