RES 24-41 - Laserfiche WebLink

Home Browse Search

CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO.41 RESOLUTION APPROVING A SECOND AMENDMENT TO TAX INCREMENT DEVELOPMENT AGREEMENT WITH MOYER PROPERTIES, LLC AND AN AMENDED TIF NOTE THEREIN WHEREAS, on October 5, 2020, the City Council (the "Council") of the City of Elk River, Minnesota (the "City"), entered into a Tax Increment Development Agreement, (the "Original Agreement") with Moyer Properties, LLC, a Minnesota limited liability company (the "Developer"), pursuant to which the City provided a taxable tax increment revenue note (the "Note") to the Developer in the amount of $190,000, to finance a portion of the land acquisition and site improvement costs related to the development of a 20,000 square foot warehouse facility in the City (the "Minimum Improvements") to be owned by the Developer and leased to Shoot Steel, Inc., a Minnesota corporation (the "Tenant"); and WHEREAS, the Original Agreement included a business subsidy agreement under Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act"), which required the Tenant relocate 7 full-time and 1 part-time existing jobs to the Minimum Improvements and create at least 6 full-time equivalent jobs at an average salary of at least $18/hour excluding benefits (the "Goals"), as stipulated in a certain lease between the Developer and the Tenant, prior to the compliance date as set forth in the Original Agreement (the "Compliance Date"); and WHEREAS, following a public hearing held on May 5, 2023, in compliance with the Business Subsidy Act, the City extended the Compliance Date by one year to May 3, 2024 (the "Amended Compliance Date") by executing a First Amendment to Tax Increment Development Agreement, between the Developer and the City (the "First Amendment" and, together with the Original Agreement, the "Agreement"); WHEREAS, the Developer has informed the City that the Tenant will not be able to meet the Goals by the Amended Compliance Date; WHEREAS, due to the Tenant's • failure to meet the Goals, the City and the Developer desire to amend the Agreement (the "Amendment") to reduce the tax increment assistance provided to the Developer pursuant to Section 116J.994, subd. 6 of the Business Subsidy Act; the tax increment assistance shall be prorated to reflect the partial fulfillment of the Goals and previously made payments to the Developer by the City under the Note, and the Amended and Restated Tax Increment Revenue Note (the "Amended Note") shall be issued in the amount of $53,989.93; WHEREAS, the City believes that approval of the Amendment and the Amended Note EL 185\61 \949054.v2