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12/07/95 15:21 DRE MPLS 4 4417425 NO.919 P003/008 <br /> ID CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN <br /> AND AMONG THE CITY OF ELK RIVER, THE ECONOMIC <br /> DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, <br /> BREAGAN CORPORATION AND NEOS, INC. <br /> THIS AGREEMENT entered into this day of December, 1995, between and <br /> among the City of Elk River ("City") and the Economic Development Authority for the City of <br /> Elk River ("EDA") and Breagan Corporation, a Minnesota corporation ("Developer") and <br /> NEOS, Inc., a Minnesota Corporation ("NEOS"). <br /> WHEREAS, Minnesota Statutes, Section 469.090, et seq., authorizes cities and counties <br /> to establish Economic Development Authorities for the purpose of furthering the economic <br /> development objectives of the respective city or county; and <br /> WHEREAS, the City of Elk River, Minnesota, established the Economic Development <br /> Authority for the City of Elk River ("EDA") in 1987; and <br /> WHEREAS, Minnesota Statutes,Section 469.174, et seq,, (the "Tax Increment Financing <br /> Act") enables an Economic Development Authority to undertake certain housing projects, <br /> redevelopment projects, and economic development projects with the use of Tax Increment <br /> Financing; and <br /> WHEREAS, Developer and NEOS applied to the EDA for Tax Increment Financing <br /> Assistance ("TIF") for development of the property located at 12797 Meadowvale Road, Elk <br /> River, Minnesota (the "Development Site") into an office and manufacturing facility to be <br /> constructed and owned by Developer with a substantial portion thereof to be leased to NEOS <br /> (the "Project"); and <br /> WHEREAS, the majority stockholders of NEOS and Developer are one in the same and, <br /> therefore, TIF assistance provided to Developer is of substantial benefit to NEOS; and <br /> WHEREAS, NEOS will be the primary tenant and employer at the Development Site; <br /> and <br /> WHEREAS, the TIF assistance was requested to provide Developer with partial <br /> reimbursement for site acquisition and site preparation costs (the "Development Costs"); and <br /> WHEREAS, City staff prepared a Tax Increment Financing Plan ("TIF Plan") for the <br /> Project which proposed maximum reimbursement for Development Costs to Developer in the <br /> amount of fifteen percent (15%) of the assessed market value of the Project as of January 2, <br /> 1997; and <br /> WHEREAS, the EDA held a public hearing on the TIF Plan on June 12, 1995, and <br /> • approved the TIF Plan on that date; and <br />