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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Mayor and City Council 7.5 <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 Microloan Agreement Cal Portner, City Administrator <br />for Scott Morrell, LLC (Morrell Companies) <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 and <br />microloan for Scott Morrell, LLC (Morrell Companies). <br /> <br />2.Following the public hearing, the Council is asked to consider adoption of the attached resolutions <br />approving property tax abatements and microloan and authorizing execution of a tax abatement <br />agreement and microloan documents for Scott Morrell, LLC (Morrell Companies) <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 $125,000 in city tax abatement assistance, to be distributed “pay as you go” for 15 years. This <br />abates the entire share of taxes on the property. In addition, the Economic Development Authority of <br />the city of Elk River will provide an approximately $200,000 microloan to Morrell in connection with the <br />Project. <br /> <br />Attachments <br /> <br /> <br /> <br />EDA Staff Memo for Property Tax Abatement (July 20, 2015) <br /> <br /> <br />EDA Staff Memo for Microloan Application (July 20, 2015) <br /> <br /> <br />Tax Abatement Application <br /> <br /> <br />Microloan Application <br /> <br /> <br />Springsted Analysis Tax Abatement (June 23, 2015) <br /> <br /> <br />Springsted Analysis Microloan (June 18, 2015) <br /> <br /> <br />Property Tax Abatement Agreement <br /> <br /> <br />Microloan Agreement <br /> <br /> <br />Security Agreement (Microloan) <br /> <br /> <br />Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement <br /> <br /> <br />Entity Guaranty <br /> <br /> <br />Personal Guaranty <br /> <br /> <br />Promissory Note <br /> <br />