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oty <br /> Elk <br /> River <br /> 13065 Orono Parkway <br /> Elk River,MN 55330 <br /> November 5,2013 <br /> Bill LaVigne, <br /> Chief Operating Officer <br /> 630 Main Street <br /> Elk River,MN 55330 <br /> Re: Bank of Elk River Tax Abatement Agreement dated April 17,2006 <br /> Dear Mr.LaVigne: <br /> I am writing in regard to the recent EDA Finance Committee's direction on the Bank of Elk River's <br /> Tax Abatement default. <br /> The EDA Finance Committee met this morning and reviewed the background associated with the <br /> Tax Abatement Agreement which included the following: <br /> In February 2006, the City of Elk River approved$300,000 of Tax Abatement assistance to The <br /> Bank of Elk River.As a requirement of receiving the Tax Abatement assistance,the bank was <br /> required to establish the wage and job goals—create 20 full-time jobs at a wage of$15/hour,in <br /> addition to the job retention of 63 FTE positions (Elk River downtown location as of April 2006) <br /> within 2-years of the Certificate of Occupancy issued September 13,2007. <br /> Upon the banks request,the City Council approved a 2-year extension on December 21,2009. The <br /> approval extended the deadline to meet the wage and job goals as specified in the original agreement <br /> by September 13,2011. The bank was required to continue to report its progress on wage and job <br /> goals annually as requested by the City until the goals were met. <br /> Upon the Bank's request,the City Council approved an additional 2-year extension on November <br /> 21,2011. The approval extended the deadline to meet the wage and job goals as specified in the <br /> original agreement by September 13, 2013. Since the last extension was not approved until <br /> November 21,2011,the State allowed the City to extend the deadline to November 1, 2013.The <br /> bank was required to continue to report its progress on wage and job goal annually as requested by <br /> the City until the goals were met. <br /> On November 1,2013 the Bank reported its current wage and job numbers as follows: 14 FTE <br /> positions were created at$15/hour with a current total of 61 1,1'E. The 14 FIE is included in the 61 <br /> jobs currently existing with the Bank.The Bank stated that these numbers were directly related to <br /> the down town location for the Tax Abatement project. <br /> Phone:763.635.1000 P ! N L R I O IT <br /> Fax:7 63.635.1090 NATURE <br /> www.ElkRiveri\IN.gov <br />