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