6.1 EDSR 07-20-2015 - Laserfiche WebLink

Home Browse Search

BUSINESS SUBSIDY AGREEMENT THIS BUSINESS SUBSIDY AGREEMENT,made and entered as of the day of July, 2015 (the "Agreement"),by and between the City of Elk River, Minnesota, a Minnesota municipal corporation(the"City")and Sportech,Inc., a Minnesota corporation("Sportech"). RECITALS WHEREAS, Envision Company, LLC, a Minnesota limited liability company ("Envision"), and an affiliate of Sportech's, has agreed to acquire from the City certain property legally described as Lots 1 and 2, Block 2, Natures Edge Business Center Second Addition, Sherburne County, located in the City (the "Property") and construct thereon an approximately 105,000 square foot manufacturing facility to be located in the City and leased to and operated by Sportech(the"Project"); and WHEREAS, the City believes that the development and construction of the Project are vital and are in the best interests of the City, will result in preservation and enhancement of the tax base, provide employment opportunities and are in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, the City has established a tax abatement program and entered into an Tax Abatement Agreement and a Purchase Agreement with Envision,both dated as of the date hereof,pursuant to which the City will apply certain property tax abatement to the purchase price of the Property; and WHEREAS, the requirements of Minnesota Statutes, Sections 116J.993 through 116J.995 (the "Business Subsidy Law"), apply to the use of the property tax abatements to the purchase price of the Property; and WHEREAS, the City has adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, after public hearings for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law; and WHEREAS, in consideration of the City's grant of the property tax abatements for Envision's acquisition of the Property and Envision's construction of the Project for Sportech, Sportech has agreed to enter into this Agreement in accordance with the Business Subsidy Law; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 460000v3 JSB EL185-31