Laserfiche WebLink
The Final draft of the contract for private development is included in <br /> the agenda packet. The following groups will be party to this <br /> agreement: Elk River EDA, Elk River City Council, Breagan <br /> Corporation (an entity comprised of Jack T. Mowry and Greg <br /> Erlandson - the proposed owners of the 12,000 square foot facility), <br /> and Neos, Inc. (the primary tenant in the facility). <br /> While Breagan Corporation will own the facility, Neos will be <br /> responsible for job creation and wage level goals. These are new <br /> statutory requirements for companies obtaining public grants or loans <br /> after July 1, 1995. Companies that receive such assistance must <br /> create a net increase in jobs in Minnesota within two years of receiving <br /> assistance, and, must meet wage level and job creation goals <br /> established by the funding agency. Businesses not meeting these <br /> conditions must repay the assistance at the terms negotiated by the <br /> business and the organization administering the assistance. Each <br /> government agency is mandated to annually report wage and job level <br /> goals and actual progress toward those goals for each business <br /> receiving assistance. Wage level and job creation goals must be <br /> documented until the project goals are achieved. <br /> • An intregal component of the contract for private development is a Tax <br /> Increment Revenue Note. This Note indebts the city to <br /> MowreyBreagan/Neos so long as the pay-as-you-go reimbursements <br /> are required of this project. Stated another way, the note indebts the <br /> city in an amount equal to 15 percent of the project's finished market <br /> value. An anticipated range of indebtedness is $56,250 to $67,500. <br /> This reflects a finished market value of$375,000 on the low end to <br /> $450,000 on the high end: <br /> Action Requested <br /> The EDA is asked to authorize its president and executive director to <br /> execute its potion of a contract for private development with Jack T. <br /> Mowry/Breagan'Corporation/Neos, Inc. <br /> /O. Modifications to TIF Plan No. 2 and TIP Plan No. 3 <br /> At its November 20 meeting, the Elk River City Council scheduled <br /> public hearings for December 21 to consider proposed modifications to <br /> the above-referenced TIF plans. It is the intention of the City Council <br /> ID to decertify both districts by December 31, 1995. TIF District No. 3 is <br />