RES 21-17 - Laserfiche WebLink

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1.05. Meritex, or an affiliate or an entity related thereto (the "Developer"), proposes to expand the Original Facility through the construction and equipping of an approximately 91,050 square foot expansion to the existing manufacturing facility located on the Property to be owned by the Developer and leased to Sportech for use in its manufacturing business (the "Expansion Project"). 1.06. The Developer and Sportech propose to expand their operations in the City and has requested financial assistance in the form of additional tax abatement assistance in connection with the Expansion Project. It is expected that Sportech will maintain existing jobs in the City and create additional new jobs within two years of the completion of the Expansion Project. 1.07. The City has determined that it is reasonable and necessary to provide certain financial assistance to the Developer and Sportech in order to facilitate the Expansion Project and to modify the Original Abatement Resolution to provide additional abatement assistance to the Developer and Sportech in connection with the Expansion Project on the Property. To that end, the City will consider approving a Tax Abatement and Business Subsidy Agreement between the City and Developer (the "Abatement Agreement") which sets forth term and conditions of the Abatement and the construction the Expansion Project. 1.08. The proposed term of the abatement will be for up to 14 years in an amount not to exceed $362,880. The proposed abatement will apply to a portion of the City's share of real estate taxes which relate to the construction of the Expansion Project on the Property by the Developer and not the real estate taxes on the Property that relate to the value of the land or the Original Facility. The "Abatement" authorized herein means 100% of the City's share of annual real estate taxes received by the City with respect to the Property in an amount calculated in each tax -payable year as follows: the City tax rate for such tax -payable year multiplied by the difference between the net tax capacity of the Property resulting from the construction of the Expansion Project, as of January 2 in the prior year, less $106,946 (i.e. the net tax capacity of the existing land and existing building value only of the Property, as established by the County assessor on January 2, 2020, for taxes payable in 2021). 1.09. The Abatement constitutes a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act") and the Abatement Agreement set certain job and goals in connection with the subsidy represented by the Abatement as required by the Business Subsidy Act. 1.10. On the date hereof, the City Council conducted a duly noticed public hearing on the Abatement proposed to be granted by the City, as well as the business subsidy to be provided to the Developer. The views of all interested persons were heard and considered at the public hearing. Section 2. Findings. 2.01. This resolution modifies the Original Abatement Resolution to provide additional 2