4.6. SR 07-16-2016 - Laserfiche WebLink

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THIS FIRST AMENDMENT TO TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT (the "First Amendment") is made and entered into this day of July, 2018, between the CITY OF ELK RIVER, MINNESOTA, a municipal corporation and political subdivision under the laws of Minnesota (the "City"), and MOWRY PROPERTIES, LLC, a Minnesota limited liability company (the "Developer"), and their permitted assigns. RECITALS WHEREAS, on September 4, 2007, the City and the Developer entered into that certain Tax Abatement and Business Subsidy Agreement (the "Original Agreement" and, together with this First Amendment, the "Abatement Agreement"); WHEREAS, capitalized terms used in this First Amendment and not otherwise defined herein have the meanings given to them in the Original Agreement; WHEREAS, the Original Agreement and the resolution adopted by the City Council on July 16, 2007 approving the Original Agreement and the Tax Abatements to be provided thereunder stated that the term of the Tax Abatements would be for a period of up to 12 years but the dates stated in the Original Agreement were for a period of only 9 years ending in 2018; WHEREAS, a period of only 9 years is insufficient to generate Tax Abatements in the amount of$384,199 as provided in the Original Agreement; WHEREAS, the City and the Developer desire to amend the Original Agreement to correct the duration of the abatement program as set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other to amend the Original Agreement as follows: 1. Amendment to Section 3.9. Section 3.9 will be amended and restated to read as follows: Section 3.9 Duration of Abatement Program. The Tax Abatement Program shall exist for a period of up to eleven years beginning with real estate taxes payable in 2010 through 2020. On or before February 1 and August 1 of each year commencing August 1, 2010 until the earlier of the date that the Developer shall have received the Reimbursement Amount or February 1, 2019 the City shall pay the Developer the amount of the Tax Abatements received by the City in the previous six month period. The City may terminate the Tax Abatement Program and this Agreement at an earlier date if an Event of Default occurs and the City rescinds or cancels this Agreement. 2. No further amendment. Except as amended above, all other terms and conditions of the Original Agreement shall remain in full force and effect. 529686v1 JSB BL185-13