08-014 RESRESOLUTION 08-14
• EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: February 19, 2008
Pursuant to due call and notice thereof, a meeting of the City Council of the City of Elk
ltivex, Sherburne Countv, Minnesota, was duly called and held at the City Hall in said City on
Tuesday, the 19th day of February, 2008, at 630 o'clock p.m.
The following members were present:
Mayor Klinzing, Councilmembexs Motin, Zerwas, and Gumphxey
and the following were absent. Councilxnembex Faxbex
Member Gumphrey uttxoduced the following resolution and moved its adoption:
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:
Recitals.
(a) Caswell and Osterman Properties, LLC (the "Developer") proposes to
construct an approximately 55,000 square foot light industrial facility- in the City (the
"Project"). The Developer has requested that the City provide financial assistance to the
Developer fox the Project. The City proposes to use the abatement for the purposes
provided for in Minnesota Statutes, Sections 469.1812 through 469.1815 (the "Abatement
Lain'), including the Project. The proposed term of the abatement will be fox up to thirteen
years in an amount not to exceed $411,000. The abatement will apply to 100% of the City's
share of the property taxes (the "Abatement") derived from approximately 7.31 acres of the
easterly portion of pxopexry currently described as Parcel Identification Number 75-131-
4100 which is being xeplatted as Lot 2, Block 1, Poxtside Addition and which is ox will be
owned by the Developer (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.
• (e) The Abatement is authorized under the Abatement Law.
2. Findings fox the Abatement. The City Council hereby makes the following findings:
• (a) The Council expects the benefits to the Ciry of the Abatement to at least
equal ox 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 o£ 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
ox $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 fox the County's share of
property tax amount which the County receives from the Pxopexry. The terms of the
Abatement axe as follows:
(a) The Abatement shall be fox up to thirteen (13) years and shall apply to the
taxes payable in the years 2010 through 2022, inclusive.
(b) The Ciry will abate and pay to the Developer 100% of the pxopert3 tax
amount which the City receives from the Pxopexry, not to exceed $411,000.
(e) The Abatement shall be subject to all the terms and limitations of the
Abatement Law.
(d) The Abatement may not be modified ox changed duting its term.
4. Apnxoval of Tax Abatement and Business Subsidy Agreement.
(a) The Ciry Council hereby approves a Tax Abatement and Business Subsidy
Agreement with the Developer providing fox payment of the Abatement and the City's
assistance fox the Project in substantially the form submitted, and the Mayor and
Administrator axe hereby authorized and directed to execute the Tax Abatement and
Business Subsidy Agreement on behalf of the City.
(b) 1'he approval hereby given to the T'ax 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 ox officers of the City shall be conclusive evidence of the approval of the Agreement
in accordance with the terms hereof.
2
• The motion fox the adoption of the foregoing resolution was made by member Gumphxey and duly
seconded by member Zexwas and, upon a vote being taken thereon after full discussion thereof, the
following voted in favor thereof:
Mayor HIinzing, Comicilmembexs Motin, Zerwas, and Gumphxey
and the following voted against the same:
None
Whereupon said resolution was declared duly passed and adopted this 19`x' day of February, 2008.
1,` (~^,,
~Stepha' e Klinzing, M
ATTEST J /
v j /
• `/ ~\
Tina Allard, City Clerk
•