7.3 SR 03-01-2021 - Laserfiche WebLink

Home Browse Search

federal law, of the ad valorem property taxation of the Tax Abatement Property so long as this Agreement remains in effect. Section 3.8 Business Subsidy Act. (1) In order to satisfy the provisions of the Business Subsidy Act, the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is the value of a portion of the Tax Abatement Property, which is approximately $362,880, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to increase the tax base, encourage economic development, and provide employment opportunities in the City and the State and stimulate construction and the creation of jobs, including construction jobs. The Developer further represents that, pursuant to the Lease, Sportech has agreed that, it will meet the following job creation goals (the "Goals"): it will cause Sportech to maintain 323 existing full time equivalent jobs with an average hourly wage of at least $22.76 per hour including benefits in the City and create at least 85 full time equivalent jobs, at an average hourly wage of at least $23.04 per hour including benefits in connection with the development of the Development Project, within two years from the Benefit Date. (2) If none of the Goals are met, the Developer agrees to repay all of the Business Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not maintained or created at the wage level set forth above and the denominator of which is 408 (i.e. the number of jobs set forth in the Goals). (3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidy Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2022, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. (4) Sportech has agreed, pursuant to the Lease with the Developer, to continue manufacturing operations at the Project for at least 5 years after the Benefit Date. Use of the Project for warehousing and storage does not comply with this Section 3.8(4). 8 LL185\31\703544.v1