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REQUEST FOR ACTION <br />TO ITEM NUMBER <br />Ci Council 3.7. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Consent July 18, 2011 Annie Deckert, Director of Economic <br /> Develo ment <br />ITEM DESCRIPTION REVIEWED By <br />Consider Resolution Authorizing Execution of an Amendment Tim Simon, Finance Director <br />for Tax Abatement and Business Subsidy Agreement by and REVIEWED BY <br />between the City of Elk River and Jacobs (Quality Label) Bob Thistle, Interim City <br /> Administrator <br />ACTION REQUESTED <br />Adopt Resolution authorizing execution of an Amendment for the Tax Abatement and Business Subsidy <br />Agreement by and between the City of Elk River and Jon Jacobs (Quality Label). <br />BACKGROUND/DISCUSSION <br />On November 21, 2005, the City Council approved the execution of a Tax Agreement and Business <br />Subsidy Agreement with Quality Label, Inc. <br />Per the agreement, Quality Label was required to create 15 new jobs with a minimum hourly wage of <br />$15.00 within two years of their expansion. Within two years of their expansion, Quality Label created 23 <br />jobs which met wage requirements, fulfilling their job creation requirement. <br />On June 30, 2011, Wisconsin Label Corporation purchased Quality Label's assets. Wisconsin Label <br />Corporation is now the owner of the assets and will be operating the business from its current location. <br />There will be no change in operations. <br />The attached agreement reflects these changes. This agreement has been reviewed by Wisconsin Label <br />and staff will be following up with a business retention and expansion visit with the new owners. Staff is <br />recommending approval of the attached agreement. <br />FINANCIAL IMPACT <br />Because this is simply a matter of amending the assignor and assignee, there is no financial impact. Tax <br />abatement payments will be made directly to Wisconsin label rather than Great Northern Bank. <br />ATTACHMENTS <br />Resolution No. 11-01 <br />Amended Assignment and Assumption of Tax Abatement and Business Subsidy Agreement <br />between Jon Jacobs and Wisconsin Label Corporation <br />Action Motion by Second by Vote <br />Follow Up <br />C:\Users\jmiller\AppData\Local\Miaosoft\Windows\Temporary Internet Files\Content.0utlook\GWL3I79K\7-18-11 Council-Wisconsin <br />Label.doc <br />