7.5. SR 07-20-2015 - Laserfiche WebLink

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Section 3.8 Business Subsidies Act. (1)In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidies Act”), the Developer acknowledges and agrees that the amount of the “Business Subsidy” granted to the Developer under this Agreement is the value of a portion of the Tax Abatement Property, which is approximately $121,609, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to increase the tax base in the City. The Developer represents that it currently has in the state 105 full-time equivalent permanent employees and they agree that it will meet the following goals (the “Goals”): it will cause Morrell Oversize, Inc. to retain its existing 105 jobs in Minnesota and create at least 8 full time equivalent jobs in connection with the development of the Development Project at an average hourly wage of at least $15.00 per hour or 150% of the state or federal minimum wage, whichever is greater, excluding benefits, within two years from the Benefit Date, which is the date the Developer or Morrell Oversize, Inc. receives a certificate of occupancy for the Project. (2)If none of the Goals are met, the Developer 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, the Developer 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 8 (i.e. number of jobs set forth in the Goals). (3)The Developer agrees to (i) report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, 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. The Developer 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 the Developer 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, the Developer 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. (4)The Developer agrees to cause Morrell Oversize, Inc. to continue operations of the Project for at least five (5) years after the Benefit Date. (5)Other than a $200,000 microloan from the Economic Development Authority of the City of Elk River, the Tax Abatements and comparable tax abatements from the County, there are no other state or local government agencies providing financial assistance for the Project other than the City and the County. (6)There is no parent corporation of Morrell Oversize, Inc. or the Developer. 464427v2 JSB EL185-33