7.3. SR 07-20-2015 - Laserfiche WebLink

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1. Business Subsidy Law Terms. The parties agree and represent to each other as follows: (a) In order to satisfy the provisions of the Business Subsidy Law, Sportech acknowledges and agrees that the amount of the “Business Subsidy” granted to Envision under the Tax Abatement Agreement and the Purchase Agreement is the value of the Property, which is no less than $1,288,590.00, and that the Business Subsidy is needed because the Project is not sufficiently feasible for Envision to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to increase the tax base and create employment opportunities in the City. Sportech represents that as of July 20, 2015 Sportech has 211 full-time equivalent permanent employees in the City. Sportech agrees that it will meet the following goals (the “Goals”): it will create, during the period commencing on July 20, 2015 and ending on a date not later than two years after a certificate of occupancy for the Project is issued by the City (the “Benefit Date”), at least 10 full-time equivalent jobs in connection with the development of the Project at an hourly wage of at least the greater of $15.00 per hour or 150% of the state or federal minimum wage, whichever is greater. (b) If none of the Goals are met, Sportech agrees to repay all of the Business Subsidy to the City, plus interest (“Interest”) set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, Sportech will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 10. (c) Sportech agrees to (i) report its progress on achieving the Goals to the City until the date the Goals are met, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. Sportech agrees to file these reports no later than March 1 of each year commencing March 1, 2016, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail Sportech a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, Sportech agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. (d) Sportech agrees to continue operations at the Project for at least 5 years after the Benefit Date. (e) Other than the tax abatements from the City pursuant to the Tax Abatement Agreement and comparable tax abatements from Sherburne County, there are no other state or local government agencies providing financial assistance for the Project; provided, however, Sportech intends to seek additional funding under the jobs creation fund after the Project is complete (f) There is no parent corporation of Sportech or Envision. 2 460000v3 JSB EL185-31