6.3. SR 06-21-2004 - Laserfiche WebLink

Home Browse Search

Exhibit A SUBSIDY AGREEMENT The City of Elk River, Minnesota, 13065 Orono Parkway, Elk River, MN 55330-5600, (the "City"), the Economic Development Authority of the City of Elk River, 13065 Orono Parkway, Elk River, MN 55330-5600, (the "EDA") and G.D.O., Inc. d/b/a Gradient Technology, a Minnesota corporation, 8744 W 35W Service Drive #A, Blaine, MN, 55449 ("Gradient") agree that Gradient and its affiliate, Badger Ventures, LLC ("Badger") have received assistance which is a "Business Subsidy" as defined by the City of Elk River Micro Loan Policy and Minnesota Statutes, Sections 116J.993 through 116J.995 (the "Subsidy Law"), and is subject to the provisions thereof, including without limitation, job creation goals, reporting requirements, five year commitment by Gradient, and repayment of the subsidy if Gradient is in default under this agreement. Accordingly, it is agreed: (1) The amount of the "Business Subsidy" is the total of approximately $72,778 of tax abatement assistance from the City to Badger and the $100,000 City Micro Loan, sub-prime financing, to Gradient. (2) The public purposes of the subsidy include job creation and enhancement of the City's industrial tax base. (3) The goals of the subsidy include the above public purposes, the construction by Badger of an approximately 13,000 square foot light manufacturing facility to be located in the City (the "Project") and the retention of the Project for at least five years after the "Benefit Date" of the Project, as defined in the Subsidy Law, which is hereby determined to be the date Gradient occupies the Project. Gradient represents that the Business Subsidy is needed in order to induce Badger to complete the Project in the City of Elk River. (4) Gradient represents that it currently has in the State of Minnesota 7 full-time equivalent permanent employees and agrees to meet the following goals (the "Goals"): it will create at least 5 full-time equivalent jobs in connection with the development of the Project at a direct hourly wage of at least $15.00 per hour within two years from the "Benefit Date". (5) If the Goals are not met, Gradient agrees to repay to the EDA and the City all or a part of the Business Subsidy theretofore paid to Gradient and Badger by the EDA and 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, Gradient will repay a portion of the Business Subsidy (plus Interest) determined b y multiplying t he Business Subsidy b y a fraction, t he numerator o f which i s t he number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 5 (i.e. number of jobs set forth in the Goals). (6) Gradient agrees to continue operations of the Project for at least five (5) years after the Benefit Date. 1630424v2 A-1