12-08-2015 JFC MIN - Laserfiche WebLink

Home Browse Search

convey the property to the buyer and not apply for additional subsidies,it would not be considered a business subsidy to the buyer if under$25,000. However the applicant has indicated that they intend to apply for additional public financing for this project within the - letter of intent which changes the scope of the project and is then subject to MN State Statutes regarding the business subsidy law. Ms. Othoudt indicated that we currently don't have a policy in place to address paying brokerage fees for buyers requesting to purchase land from the Economic Development Authority or the city. Ms. Othoudt indicated that this maybe something that the EDA Finance Committee should consider going forward. Ms. Othoudt discussed the comments provided by the EDA legal counsel. In addition to the business subsidy provision, legal counsel mentioned their concern about the "Non-shop" provision on the letter of intent. The Non Shop provision states it is binding and needs a clearly stated duration limit, such as "The provisions of this paragraph shall expire upon the earlier of(i) the date a Purchase Agreement is executed by the Buyer and the Seller or (ii) 60 days after the date the Seller signs this letter of intent." Discussion among members was had regarding the duration limit Member Ovall indicated that it should follow the 120 day due diligence period. All.meinbers agreed. Motion by Member Wagner to recommend the EDA to approve-the Letter of Intent by Robideau Properties for the purchase of a 4.34 acre parcel located at 17565 Tyler Street NW, Elk River to include the changes to the Non-Shop provision as suggested by legal counsel to read: The provisions of this paragraph shall expire upon the earlier of(i) the date a Purchase Agreement is executed by the Buyer and the Seller or (ii) 120 days after the date the Seller signs this-letter of intent. Motion was seconded by Member Motin. Motion carried 4-0. 5. 'Announcements Verbal update on Sweet Peas Microloan and Ethanol Technology of MN Ms. Othoudt updated members on the recent collection letters that were sent out to the applicant's home and place of business for each of the uncollectable'microloans. To date, staff has received no feedback and no payments. 6. Adjournment • There being no further business Member Tveite moved to adjourn the meeting. The meeting adjourned at 8:05 a.m. Minutes prepared by Amanda Othoudt. -4((' Tina Allard, City Clerk