08-025 RES
RESOLUTION 08-025
EXTRACT OF NITNUTES OFMEETffiG
OF THE CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: April 21, 2008
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 21st day of April, 2008, at 6:30 o'clock p~m.
The following members were present: Mayor Stephanie Klinzing, Councilmembers Nick
Zerwas and Larry Farber
and the following were absent: Councilmembers Gumphrey and Motin..
Member Zerwas introduced the following resolution and moved its adoption:
RESOLUTION APPROVING PROPERTY TAX ABATEMENTS
AND AUTHORIZING EXECUTION OF
A TAX ABATErvrENT AGREEMENT
BE IT RESOLVED by the City Council (the "Council") of the City of Elk River,
Minnesota (the "City"), as follows:
1 ~ Reci tals.
(a) Envison Company, LLC, a Minnesota limited liability company (the
"Developer") desires to purchase certain real property identified as Lot 4, Block 1,
NORTHSTAR BUSIN"ESS PARK, Sherburne County, Minnesota, Parcel Identification
No~ 75-757-0120 (the "Tax Abatement Property") on which the Developer or Sportech,
Inc~ will construct an approximately 80,000 square foot light industrial facility located at
17464 Tyler Street NW, Sherburne County, Elk River, Minnesota (the "Project")~
(b) The Economic Development Authority of the City of Elk River (the
"EDA") and the Developer have entered into a Purchase Agreement providing for the
EDA's conveyance of the Tax Abatement Property to the Developer for the purpose of
constructing the Project (the "Purchase Agreement").
(c) The Purchase Agreement provides that the EDA will convey the Tax
Abatement Property to the Developer at less than fair market value and the EDA has
requested that the City and Sherburne County, Minnesota (the "County") reimburse the
EDA for the amount of the discount in the price of the Tax Abatement Property with tax
abatements in accordance with Minnesota Statutes, Sections 469~1812 through
469.1815(the "Abatement Law").
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(d) The proposed term of the abatement will be for up to twelve years in an
amount not to exceed $460,OOO~ The abatement will apply to 100% of the City's share of
the property taxes (the "Abatemenf') derived from the Tax Abatement Property~
(e) On the date hereof, the Council held a public hearing on the question of
the Abatement, and said hearing was preceded by at least 10 days but not more than 30
days prior published notice thereof.
(1) The Abatement is authorized under the Abatement Law.
2~ Findings for the Abatement" The City COWlcil hereby makes the following
findings:
(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
significantly increase the tax base of the City and provide quality employment
opportunities in the City.
(c)
district.
The Tax Abatement Property is not located in a tax increment financing
(d) In any year, the total amount of property taxes abated by the City by this
and other resolutions and agreements, 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. The terms of the
. Abatement are as follows:
(a) The Abatement shall be for up to twelve (12) years beginning with real
estate taxes payable in 2010 and continuing through 2021, inclusive.
(b) The City will abate and pay to the EDA 100% of the City's share of the
property tax amount which the City receives from the Tax Abatement Property.
(c) The Abatement shall be subject to ail 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 A2Ieement..
(a) The City Council hereby approves a Tax. Abatement Agreement with the
EDA 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 Agreement on behalf of the City.
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(b) The approval hereby given to the Tax Abatement 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.
( C) The City Council hereby approves and ratifies the execution of the
Purchase Agreement by the EDA as a business subsidy agreement pursuant to the
Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995 and
further authorizes the EDA to enter into an agreement pursuant to the Business Subsidy
Law in connection with a micro loan for the Project.
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The motion for the adoption of the foregoing resolution was made by Councilmember Zerwas
and duly seconded by Councilmember Farber and, upon a vote being taken thereon after full
discussion thereot: the following voted in favor thereof: Mayor Klinzing, Councilmembers
Zerwas and Farber
and the following voted against the same: No one.
Whereupon said resolution was declared duly passed and adopted.
Passed and adopted this 21st day of April, 2008.
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ATTEST: /~
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Tina Allard, CitY'-elefk
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