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6.2 EDSR 12-16-2013
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6.2 EDSR 12-16-2013
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12/13/2013 10:00:10 AM
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City Government
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EDSR
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12/16/2013
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• MEMORANDUM <br /> TO: Brian Beeman <br /> FROM: Andrea McDowell Poehler <br /> DATE: November 4,2013 <br /> RE: Bank of Elk River/Tax Abatement Agreement <br /> Per your request,you have asked for a chronology of events associated with the <br /> approvals for the Tax Abatement Agreement between the EDA and the Bank of Elk River <br /> and a summary of what action would need to be taken if the goals identified in the <br /> Agreement have not been met. <br /> Chronology Event <br /> 4/17/06: Effective Date of Tax Abatement Agreement <br /> Tax abatement amount of$300,000(over 12 years from 2008—2019) <br /> Requirements=Creation of 20 full-time jobs at a wage of at <br /> least$15/hour,including benefits not required by law,within 2 years of <br /> Benefit Date <br /> • Bank employed 63 FT employees <br /> 9/13/07: Benefit Date <br /> 9/13/09 Default <br /> 12/21/09: Extension of Job Creation Goals for 2 years <br /> Staff Memo indicates that only 10 jobs were created <br /> Tax abatements received=$29,166 <br /> Statute provides authority for only one extension for one year. <br /> 9/13/11: Default <br /> 11/21/11: Extension of Job Creation Goals for 2 years <br /> Staff Memo indicates that the 10 jobs created were lost and the Bank <br /> currently employed 59 FT employees <br /> Tax Abatement received= $78,572.61 <br /> 9/13/13: Default(State and City agreed to an extension to 11/1/13, since the last <br /> extension was approved in November,to provide the full 2 years) <br /> S <br />
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