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CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN <br />AND AMONG THE CITY OF ELK RIVER, THE ECONOMIC <br />DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, <br />BREAGAN CORPORATION AND NEOS, INC. <br />THIS AGREEMENT entered into this day of December, 1995, between and <br />among the City of Elk River ( "City ") and the Economic Development Authority for the City of <br />Elk River ( "EDA ") and Breagan Corporation, a Minnesota corporation ( "Developer ") and <br />NEOS, Inc., a Minnesota Corporation ( "NEOS "). <br />WHEREAS, Minnesota Statutes, Section 469.090, et sea., authorizes cities and counties <br />to establish Economic Development Authorities for the purpose of furthering the economic <br />development objectives of the respective city or county; and <br />WHEREAS, the City of Elk River, Minnesota, established the Economic Development <br />Authority for the City of Elk River ( "EDA ") in 1987; and <br />WHEREAS, Minnesota Statutes, Section 469.174, etsea., (the "Tax Increment Financing <br />Act ") enables an Economic Development Authority to undertake certain housing projects, <br />redevelopment projects, and economic development projects with the use of Tax Increment <br />Financing; and <br />• WHEREAS, Developer and NEOS applied to the EDA for Tax Increment Financing <br />Assistance ( "TIF ") for development of the property located at 12797 Meadowvale Road, Elk <br />River, Minnesota (the "Development Site ") into an office and manufacturing facility to be <br />constructed and owned by Developer with a substantial portion thereof to be leased to NEOS <br />(the "Project "); and <br />WHEREAS, the majority stockholders of NEOS and Developer are one in the same and, <br />therefore, TIF assistance provided to Developer is of substantial benefit to NEOS; and <br />WHEREAS, NEOS will be the primary tenant and employer at the Development Site; <br />and <br />WHEREAS, the TIF assistance was requested to provide Developer with partial <br />reimbursement for site acquisition and site preparation costs (the "Development Costs "); and <br />WHEREAS, City staff prepared a Tax Increment Financing Plan ( "TIF Plan ") for the <br />Project which proposed maximum reimbursement for Development Costs to Developer in the <br />amount of fifteen percent (15%) of the assessed market value of the Project as of January 2, <br />1997; and <br />WHEREAS, the EDA held a public hearing on the TIF Plan on June 12, 1995, and <br />• approved the TIF Plan on that date; and <br />