7. EDSR 09-16-2013 - Laserfiche WebLink

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The Bank of Elk River— Business Subsidy job Goals In 2006 The Bank of Elk River was provided a tax abatement for renovation of its existing facility and the construction of an approximately 20,000 square foot expansion.As part of the Tax Abatement and Business Subsidy Agreement between the City and the Bank of Elk River, certain job goals were outlined which, falls under the Business Subsidy Law,Minnesota Statutes, Section 116J.993 through 1161995. Those job goals have not been met. The EDA allowed two extensions due to extenuating circumstances caused by a weak economy and reorganization.The last extension expires September 2013. EDA staff has contacted the State to determine the next course of action.The State is of the understanding that no further extensions are allowed, and it is questionable whether the Tax Abatement and Business Subsidy Agreement can be amended. The EDA attorney is researching this possibility. However,preliminary research has determined that amending the agreement to revise the wage and job goals is not specifically authorized under the statute.A notice has been drafted to the Bank of Elk River as per the agreement. If the Bank of Elk River is not allowed to receive another extension and if the agreement cannot be amended, then the bank would be forced by statue and per the agreement to pay back a portion of the tax abatement with interest. That portion will be determined as soon as staff has heard back from the attorney and the state on the next course of action. Staff plans to have a recommendation ready for the October EDA meeting. Assistant Director of Economic Development Position Recently, Clay Wilfahrt accepted a position as a City Administrator in Winsted,MN. Since that time, staff conducted interviews for an EDA Marketing Intern. One candidate rose to the top and that person is being recommended at the September 16, 2013 City Council meeting to be hired for 32 hours per week until Dec 31, 2013. Due to time spent on various projects and the time needed to train the new intern, job application materials for the Assistant Director of Economic Development has been delayed. Staff will continue to update the application materials and seek Council approval once the documents are ready. The intern will be assisting the Director in preparing for the Minnesota Commercial Association of Realtors (MNCAR) Expo,Realtor's Day,Manufacturer's week and tours, and a variety of other marketing efforts. Updated Bylaws Staff would like to remind the EDA Members to sign the updated bylaws following this meeting. Financial Impact N/A Attachments • N/A N:\Departments\Community Development\Economic Development\EDA\Adminstrative\Agenda\Agenda\Year2013\9-16-2013\7 Project Updates.docx