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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Mayor and City Council 7.1 <br />Agenda Section Meeting Date Prepared by <br /> <br />Public HearingOctober 17, 2016Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Property Tax Abatement and Forgivable Loan Cal Portner, City Administrator <br />Agreement from SBH Properties, LLC (Apex <br />Reviewed by <br />Embroidery, Inc.) <br /> <br /> <br />Action Requested <br /> <br /> <br />1.Open public hearing to consider comments on the proposed property tax abatement assistance <br />and a forgivable loan agreement for SBH Properties, LLC (Apex Embroidery, Inc.). <br /> <br />2.Following the public hearing, the Council is asked to consider the attached resolution to approve <br />or deny a property tax abatement and forgivable loan and authorizing execution of the tax <br />abatement agreement and forgivable loan documents for SBH Properties, LLC. <br /> <br />Background/Discussion <br /> <br />A public hearing must be held and comments taken for a business subsidy greater than $150,000. The <br />attached staff report provides background on the project as considered earlier by the EDA for financial <br />assistance in the construction of a 13,312 square foot manufacturing facility. <br /> <br />Financial Impact <br /> <br />Up to $78,007 in city tax abatement assistance, to be distributed “pay as you go” for 10 years. This abates <br />the entire share of taxes on the property. In addition, the Elk River EDA will provide a $200,000 <br />forgivable loan for the project. The Forgivable Loan Fund balance is $200,000 which will be fully <br />depleted. <br /> <br />Attachments <br /> <br /> <br /> <br />EDA Staff Report for Property Tax Abatement (September 29, 2016) <br /> <br /> <br />EDA Staff Report for Forgivable Loan Application (October 17, 2016) <br /> <br /> <br />Springsted Analysis (September 23, 2016) <br /> <br /> <br />Updated Springsted Analysis (October 10, 2016) <br /> <br /> <br />Resolution <br /> <br /> <br />Property Tax Abatement Application <br /> <br /> <br />Property Tax Abatement Agreement <br /> <br /> <br />Forgivable Loan Application <br /> <br /> <br />Forgivable Loan Agreement <br /> <br /> <br />Environmental Indemnification Agreement – Forgivable Loan <br /> <br /> <br />Entity Guarantee – Forgivable Loan <br /> <br /> <br />Personal Guarantee – Forgivable Loan <br /> <br /> <br />Mortgage Agreement – Forgivable Loan <br /> <br /> <br />Security Agreement – Forgivable Loan <br /> <br /> <br />Promissory Note – Forgivable Loan <br /> <br />