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Economic Development Authority Minutes Page 3 <br /> October 17,2016 <br /> 6.3 SBH Properties, LLC (Apex Embroidery & Design, Inc.) Property Tax <br /> Abatement Request <br /> Ms. Othoudt presented the staff report. She indicated Mikayla Huot from Springsted <br /> was in audience as well as applicant. She stated Dan Weber was also present <br /> representing Sherburne County. <br /> President Tveite discussed one area of the Finance Committee's lengthy discussion <br /> regarding the difficulty of making a decision on an assumption of what a legitimate <br /> rental rate would be, due to the lack of comparables for industrial versus office lease <br /> rates. <br /> Commissioner Wagner agreed and further discussed the challenges of the Finance <br /> Committee discussions after receiving the initial assessment from Springsted. She felt <br /> this project is a good fit for Elk River,noting its proposal to produce 25 new jobs in <br /> 2 years,but struggled with determining a blended lease rate using comparables from <br /> the St. Cloud market area. She ultimately is in support of approving the full <br /> abatement request of$87,167 for 12 years. <br /> Ms. Othoudt stated the blended rate calculated of$4.75 SF industrial and$6.25 SF <br /> office for a blended lease rate of$5.50 SF was conservative and was based on the <br /> rates received from comparables in Sherburne County provided by Mr.Weber. <br /> President Tveite stated from his perspective an additional two years to ensure a <br /> company is going to be successful would be a fairly small investment in the grand <br /> scheme of things and wouldn't be worth the risk of losing a potential great tenant in <br /> the city. He also stated the County hasn't approved this project as of yet and the <br /> Bank of Elk River still needs to provide final approval. <br /> Mr.Weber indicated he would be recommending the next day, October 18,to the <br /> Sherburne County Board of Commissioners approval of the tax abatement and tax <br /> abatement financing. <br /> Commissioner Wagner motioned and Commissioner Westgaard <br /> seconded to approve a 12 year pay-as-you-go property tax abatement <br /> for a maximum amount of$85,164 to SBH Properties, LLC, doing <br /> business as Apex Embroidery & Design, Inc. as outlined in the staff <br /> report. <br /> Motion carried 5-0 with Commissioner Oval! abstaining. <br /> 6.4 Directors Report <br /> Ms. Othoudt presented the staff report. <br /> 0 1 E I E I I T <br /> NATURE <br />