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CITY OF ELK RIVER, MINNESOTA RESOLUTION NO.21-17 RESOLUTION GRANTING A PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY IN THE CITY OF ELK RIVER AND AUTHORIZING THE EXECUTION OF A TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT FOR THE SPORTECH PHASE II PROJECT BE IT RESOLVED by the City Council (the "City Council") of the City of Elk River, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. The City is authorized by Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Abatement Act") to grant a property tax Abatement (as hereinafter defined) in order to achieve one or more public purposes identified in the Abatement Act. 1.02. On July 20, 2015, the City Council adopted a resolution (the "Original Abatement Resolution") approving the provision of tax abatement assistance in the amount of $1,288,590 (the "Original Abatement") to Envision Company, LLC ("Envision") in the form of a land write down in connection with the sale of land to Envision for the construction of a 105,000 square foot manufacturing facility (the "Original Facility") to be located in the City on the property identified as Lots 1 and 2, Block 2, Natures Edge Business Center Second Addition, tax parcel number 758280205 (the "Property"). 1.03. The City entered into an Abatement Agreement, dated September 14, 2016 (the "Original Abatement Agreement"), with Envision setting forth the terms and conditions of the provision of the Original Abatement. The Original Abatement Agreement was assigned to Envision 3, LLC, a Minnesota limited liability company (the "Assignor"), and in connection therewith, the City received a Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Financing Statement dated September 14, 2016 (the "Mortgage") from the Assignor in favor of the City and a Promissory Note dated September 14, 2016 (the "Note") as security for the land write down provided to Envision. 1.04. In April 2016, the City consented to (i) the transfer of the Property and the Original Facility to Meritex Elk River, LLC ("Meritex"), (ii) the satisfaction of the Mortgage and the termination of the Note in accordance with the terms thereof, (iii) an amendment to the Abatement Agreement to address insurance for the Original Facility pursuant to a First Amendment to Abatement Agreement by and between the City and the Assignee (the "Amendment"), and (iv) the assignment of the Assignor's rights and obligations under the Abatement Agreement to Sportech, Inc., a wholly owned subsidiary of Off Road Acquisition Co., LLC (the "Sportech") pursuant to an Assignment and Assumption of Tax Abatement by and between the Assignor and the Sportech (the "Assignment and Assumption Agreement").