Loading...
07-066 RES . . . EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA HELD: July 16, 2007 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Elk River, Sherburne County, Minnesota, was duly called and held at the City Hall in said City on Monday, the 16th day of July, 2007, at 6:30 o'clock p.m. The following members were present: Mayor Klinzing, Councilmembers Zerwas, Gumphrey, Farber, and Motin and the following were absent: None Member Farber adoption: introduced the following resolution and moved its RESOLUTION 07-66 RESOLUTION AUTHORIZING EXECUTION OF A TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT BE IT RESOLVED by the City Council (the "Council") of the City of Elk River, Minnesota (the "City"), as follows: 1. Recitals. (a) Metal Craft Machine & Engineering, Inc. (the "Developer") proposes to construct an approximately 60,000 square foot light industrial facility in the City (the "Project"). The Developer has requested that the City provide financial assistance to the Developer for the Project. The City proposes to use the abatement for the purposes provided for in the Abatement Law (as hereinafter defined), including the Project. The proposed term of the abatement will be for up to twelve years in an amount not to exceed $426,888. The abatement will apply to 100% of the City's share of the property taxes (the "Abatement") derived from the property described as Parcel Identification Number 75-131-4100 (the "Property"). (b) On the date hereof, the Council held a public hearing on the question of the Abatement and the business subsidy, and said hearing was preceded by at least 10 days but not more than 30 days prior published notice thereof. (c) The Abatement is authorized under Minnesota Statutes, Sections 469.1812 through 469.1815 (the "Abatement Law"). 2. Findings for the Abatement. The City Council hereby makes the following findings: 2047530vl . . . (a) The Council expects the benefits to the City of the Abatement to at least equal or exceed the costs to the City thereof. (b) Granting the Abatement is in the public interest because it will increase or preserve the tax base of the City and provide employment opportunities in the City. (c) The Property is not located in a tax increment financing district. (d) In any year, the total amount of property taxes abated by the City by this and other resolutions, if any, does not exceed the greater of ten percent (10%) of the current levy or $200,000. 3. Terms of Abatement. The Abatement is hereby approved; provided, however, the this approval is contingent upon the approval by Sherburne County of an abatement program for the Project upon the same terms as set forth below for the County's share of property tax amount which the County receives from the Property. The terms of the Abatement are as follows: (a) The Abatement shall be for up to twelve (12) years and shall apply to the taxes payable in the years 2009 through 2020, inclusive. (b) The City will abate and pay to the Developer 100% of the City's share of the property tax amount which the City receives from the Property, not to exceed $426,888. (c) The Abatement shall be subject to all the terms and limitations of the Abatement Law. (d) The Abatement may not be modified or changed during its term. 4. Approval of Tax Abatement and Business Subsidy Agreement. (a) The City Council hereby approves a Tax Abatement and Business Subsidy Agreement with the Developer providing for payment of the Abatement and the City's assistance for the Project in substantially the form submitted, and the Mayor and Administrator are hereby authorized and directed to execute the Tax Abatement and Business Subsidy Agreement on behalf of the City. (b) The approval hereby given to the Tax Abatement and Business Subsidy Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Agreement. The execution of the Agreement by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Agreement in accordance with the terms hereof. 2047530vl 2 . . . The motion for the adoption of the foregoing resolution was made by member Farber and duly seconded by member Gumphrey and, upon a vote being taken thereon after full discussion thereof, the following voted in favor thereof: Mayor Klinzing, Counclmembers Zerwas, Gumphrey, Motin, and Farber and the following voted against the same: None Passed and adopted by the City Council of the City of Elk River on this 16th day of July, 2007. AT.T...E. SlT..:.. ~/ ~<< ~//~ Tina Allard, City Clerk 2047530vl 3