7.0. EDSR 03-08-2004 - Laserfiche WebLink

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• For publication on Wednesday, February 25,2004 Please contact Catherine Mehelich with any questions at (763) 635-1041 CITY OF ELK RIVER NOTICE OF PUBLIC HEARING REGARDING PROPOSED PROPERTY TAX ABATEMENT FOR ORLUCK INDUSTRIES, INC. LIGHT INDUSTRIAL BUILDING PROJECT NOTICE IS HEREBY GIVEN that the City Council of the City of Elk River, Minnesota, will hold a public hearing on March 8, 2004, at a meeting of the Council beginning at approximately 6:30 p.m., Central Time, in the Elk River Senior High School Little Theater, 900 School Street (enter through Door H on the north side of the building), Elk River, Minnesota, on the request of Orluck Industries, Inc. (the "Company") to have the City grant to the Company the tax abatement described below on the Company's proposed development of an approximately 20,000 square foot light industrial building on the property located in the City at the southwest corner of Joplin Street and Business Center Drive (collectively, the "Project"). The proposed abatement is as follows: for property taxes payable on the Project beginning in 2006, the City • would ambe thity mnt eql hCity's local ht tax capacitybate of theand Pr reirojectursfor thateCyearan a, andousuch uaproperty tax abatements tax rate wouldtimes continuetene , if necessary, in each subsequent year through 2017, provided that the total amount of abatements granted by the City for the Project shall meet but not exceed the City's land cost estimated at $100,760. It is estimated that the annual amount of City taxes to be abated would be approximately $8,912 and that, accordingly, approximately eleven years of City taxes would be abated for the Project. This abatement would constitute a "business subsidy" under Minnesota Statutes, Sections 116J.993 through 116J.995, and the City would impose specific wage and job goals for the Project under that law unless the City Council determines that the creation of jobs is not to be a goal, the wage and job goals may be set at zero. The City Council will consider granting this property tax abatement in response to the request. A draft of a proposed Abatement Agreement between the City and the Company, which includes the proposed business subsidy agreement, as well as a summary of the terms of the subsidy, are available for review from the office of the City's Economic Development Director at City Hall. All interested persons may appear at the public hearing and present their views orally or in writing. Catherine Mehelich IDDirector of Economic Development (February 25) 1410047v1 A-1