6.0. EDSR 06-10-2002 - Laserfiche WebLink

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Jun 10 02 03: 09p SANTWIRE/BERGQUIST 763-262-7389 p . 2 • June 10, 2002 TO: Pat Klaers City Administrator City of Elk River 13065 Orono Parkway Flk River, MN 55330 Re: Property Tax Abatement For: Proposed F.Ik Path Professional Orrice Building Dear Pat: This will confirm our conversation of last Friday regarding our concern with the proposed use of tax subsidies for speculative office development of Elk Path LLC. We believe the application should be denied by the Elk River City Council for one or all of the following reasons. • Note: Hereinafter the Economic Development Tax Rebate Financing Policy & Application shall be referred to as "Rebate Policy". 1) The application does not meet any one of the Objectives set forth in the Rebate Policy under Section III Objectives of Tax Rebate Financing; as such this project would not qualify subject to Section VI thereof: 2) We do not believe it was the intent of the Rebate Policy to subsidize SPECULATIVE OFFTCF. DEVELOPMENT. This proposal is delinitely pure speculation. 3) Under the Business Subsidy Law Minnesota Chapter 116J.993-995, 116J.994 Subd_ 4 Wage & Job Goals it states in part "The subsidy agreement, in addition to any other goals, must include (1.) goals for the number of jobs created". We believe if this abatement were approved, the proposed Abatement Agreement (Page 3, Para. H) should stipulate that the covenant to provide 100 additional NEW full time jobs in the City of Elk River will not be changed or modified in any way during the abatement period. 4) Job Creation. The problem has always been to determine how a Speculative Office Building can in itself create jobs other than such as lawn care, a etc. The point being is that Speculative Office Space is in no way similar to an office building that would be proposed in order to move a large number of