6.2 EDSR 12-16-2013 - Laserfiche WebLink

Home Browse Search

0 Elk -.... -- Request for Action River To Item Number EDA Finance Committee 4.2 Agenda Section Meeting Date Prepared by General Business December 10, 2013 Brian Beeman, Director of Economic Development Item Description Reviewed by Bank of Elk River Business Subsidy Agreement Tax Jeremy Barnhart,Deputy Director, CODD Abatement Default Reviewed by Action Requested Consider terms for Bank of Elk River's repayment of Tax Abatement per the Business Subsidy Agreement and make recommendation to the EDA. Background/Discussion At its November 5, 2013 meeting, the EDA Finance Committee reviewed the default status of the Bank of Elk River,relative to their Pay as you go Tax Abatement agreement totaling$300,000 approved February of 2006. At that time, the Finance Committee recommended suspending all future abatement and requesting the bank pay all attorney fees as required in the Business Subsidy Agreement and directed istaff to obtain information on wage and job goals from the bank,which was received November 20, 2013. Additional clarification was received December 3, 2013 which included an updated employment chart detailing the termination dates. That information is included in Attachment 3. Due to the condensed time line, the completed analysis was not available for the packet;the EDA Attorney,will provide that verbally on December 10. Unless it is determined that further research is needed, the committee will be determining the pay back amount of the unmet goals going back to 2006 and making a recommendation to the EDA for their December 16, 2013 meeting. The City Council will serve as the final authority following the recommendation from the EDA. Financial Impact N/A Attachments • Bank of ER Response to Letter dated November 20, 2013 • Bank of ER additional reporting High Water marks dated March 30, 2011 • Bank of ER, City, State Reports (Attachment 3) • November 5, 2013 Supporting Documents ill P1lEfE1 11 INATUREJ