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4.5. SR 01-21-2014
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4.5. SR 01-21-2014
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1/17/2014 2:17:09 PM
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1/21/2014
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Option 2. Amend the Business Subsidy Agreement to reduce the number of jobs required to the 13 <br /> achieved by the Bank in December 2010 (its "highwater mark"), allow tax abatement payments to <br /> continue as contemplated under the Agreement up to a maximum of$195,000 (65% of the original <br /> $300,000) within the 12 year period provided under the Agreement. Include indemnification of the <br /> City by the Bank for any liability associated with the amendment or subsidy paid pursuant to the <br /> amendment. <br /> The FDA Finance Committee recommends Option 2 as it reflects the impact of the downturn in the <br /> economy,but retains the job to subsidy ratio originally proposed for the Project. With this option, staff <br /> would prepare an amendment to the agreement,to be approved by the City Council, likely in January <br /> 2014. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> ■ Finance Committee packet dated December 10, 2013. <br /> NAPublic Bodies\Agenda Packets\01-21-14\Final\x4.5 at 16.9 at 16.1 sr Bank of Elk River Default.docx <br />
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