7.5. SR 07-15-2013 - Laserfiche WebLink

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City of Elk - Request for Action River TO ITEM NUMBER Mayor and City Council 7.5 AGENDA SECTION MEETING DATE PREPARED BY Public Hearings July 15, 2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Disposition of City-Owned Property (Lot 1,Block 3, Brain Beeman,Director of Economic Natures Edge Business Park) Development and Jeremy Barnhart,Deputy Director CODD REVIEWED BY Cal Portner, City Administrator Action Requested Hold a public hearing to consider comment on the disposition of city property. Following the public hearing,adopt by motion the following resolutions: 1. Resolution Authorizing the Sale of Land 2. Resolution Authorizing Execution of Abatement Agreements 3. Resolution Authorizing the Reimbursement of Funds Background/Discussion Attached for your review is the purchase agreement prepared by the city attorney. The agreement allows for the sale of a 10.36-acre lot to Preferred Powder Company,LLC for the purchase price of$1.00, conditioned upon the City of Elk River and Sherburne County reimbursing the land at market value in the amount of$680,895 through tax abatement revenues generated for up to 18 years as a result of the project. The City Council held a public hearing and approved the abatement application at its July 1 meeting. Sherburne County plans to hold a public hearing and consider the abatement application at its August 6 meeting. In addition,the purchase agreement includes the statutory provisions for the sale of city property. Minnesota Statutes require the city to provide notice and hold a public hearing prior to the sale of property,review building plans and specifications, and a reversion clause if the project is not completed as agreed. Financial Impact Initial development costs for the Nature's Edge Business Center have been paid off by a$250,000 Department of Employment and Economic Development Public Infrastructure Grant, the city and EDA development funds, and the trunk water and sewer funds, to afford the EDA the ability to provide the 10.36 acre lot in the form of upfront assistance for this unique project. The land will be $680,895 of the up-front assistance,and the remaining$472,983 will be provided in the form of an inter-fund loan which will be distributed upon proof of site development expenditures. NaA f RE]