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City of <br /> Elk=' Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.5 <br /> Agenda Section Meeting Date Prepared by <br /> Consent January 21, 2014 Brian Beeman,Director of Economic <br /> Development <br /> Item Description Reviewed by <br /> Bank of Elk River Amended Business Subsidy Jeremy Barnhart,Deputy Director, CODD <br /> Agreement Reviewed by <br /> Cal Portner, City Administrator <br /> Action Requested <br /> Approve by motion,the Amended Business Subsidy Agreement as recommended by the EDA. <br /> Background/Discussion <br /> At its December 16, 2013, regular meeting, the EDA directed staff to work with the Bank of Elk River to <br /> amend the current Business Subsidy Agreement. The amendment reduces the number of jobs required to <br /> the 13 achieved by the Bank in December of 2010, allows tax abatement payments to continue as <br /> contemplated under the agreement up to a maximum of$195,000 within the 12-year period provided <br /> under the agreement, and to consult with the bank on how they would like the remainder of the <br /> abatement paid out. <br /> Staff has completed the amendment,which the bank has signed. Upon signing of the approved amended <br /> agreement by both parties, the abatement payments will continue as they have in the past until a <br /> maximum of$195,000 has been met or the 12-year period has been reached per the subsidy agreement, <br /> whichever comes first. Once either of these terms has been met,the tax abatement will cease. <br /> The city will invoice the Bank of Elk River as agreed to in the revised agreement to be reimbursed for all <br /> legal fees associated with this project. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • Bank of Elk River Staff Memo from December 16,2013. <br /> • Copy of Revised Business Subsidy Agreement. <br /> pawIHL0 0 <br /> UREJ <br />