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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Mayor and City Council 7.3 <br />Agenda Section Meeting Date Prepared by <br /> <br />Public HearingJuly 20, 2015Amanda Othoudt, EDD <br />Item Description Reviewed by <br /> <br />Property Tax Abatement and Purchase Agreement Cal Portner, City Administrator <br />for Envision Co., LLC (Sportech, Inc.) <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br /> <br />1.Open public hearing to consider comment on the proposed property tax abatement assistance for <br />Envision Companies, LLC. (Sportech, Inc.) <br /> <br />2.Following the public hearing, the Council is asked to consider adoption of the attached resolution <br />approving property tax abatements and authorizing execution of a tax abatement agreement and <br />purchase agreement for Envision Companies, LLC. (Sportech, Inc.) <br /> <br />Background/Discussion <br /> <br />The City Council must hold a public hearing and invite comments for any business subsidy in the amount <br />greater than $150,000. <br /> <br />The attached staff report provides background on the project as considered by the EDA on July 20 for <br />land sale and property tax abatement. <br /> <br />Financial Impact <br />Up to $1,288,590 in city tax abatement assistance is proposed to be distributed as “up front financing” for <br />up to 20 years. This abates the entire city share of taxes on the property. It is expected that the county <br />will participate, and their portion of the taxes would supplement the development fund income until the <br />full purchase price of the land is captured. Once the development fund received full reimbursement for <br />the land, the abatement would end. If the county does not choose to participate in the abatement, it is not <br />expected that the full purchase price of the land at $1,288,590 would be realized over the maximum 20 <br />year term of the abatement. <br /> <br />Attachments <br /> <br /> <br /> <br />EDA Staff Memo (July 20, 2015) <br /> <br /> <br />Property Tax Abatement Application <br /> <br /> <br />Springsted Analysis (June 23, 2015) <br /> <br /> <br />Purchase Agreement <br /> <br /> <br />Property Tax Abatement Agreement <br /> <br /> <br />Business Subsidy Agreement <br /> <br /> <br />Resolution Approving Property Tax Abatement for Lot 1 and 2, Block 2 NEBC II <br /> <br />