7.5 SR 06-17-2024 - Laserfiche WebLink

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City of Elk - River To City Council Item Number 7.5 Request for Action Meeting Date Prepared By June 17, 2024 Brent O'Neil, Economic Development Director Item Description Reviewed by Business Assistance Agreement - Heritage Millwork Cal Portner Project Resolution 24-35 Action Requested Following the public hearing, approve, by motion, Resolution 24-35 authorizing execution of a business assistance agreement with Heritage Millwork, Inc., PLM Properties, LLC, and affiliates. Background/Discussion The attached business subsidy agreement is a key implementation step to supporting the Heritage Millwork project in Elk River following City Council approval of Tax Increment Finance (TIF) District No. 29, EDA consideration of a business microloan, and participation in the city's Energy Incentive program. This action achieves two broad objectives. First, whenever an incentive over $150,000 is provided to support business goals the business subsidy agreement is a requirement of statute and the city's business subsidy policy. This agreement acknowledges the business subsidy being provided and memorializes terms and conditions between the city and the recipient of the incentive(s). Noteworthy in this agreement are job creation goals. Under the TIF portion of the agreement, the company must create 60 new positions within two years at the new site and all positions must exceed $21 per hour. The business subsidy agreement also acknowledges the EDA's granting of a $200,000 microloan and the anticipated utilization of the city's Energy Incentive program of approximately $10,000. Second, the business subsidy agreement has several attached documents and agreements -in -form which the Mayor and City Clerk are authorized to finalize and execute at the proper stages of the project. These include: Purchase Price Note - To be executed at the time of land sale, committing TIF funds to pay the city the full value of the Nature's Edge property and including a shortfall provision such that insufficient TIF payments would be supplemented with payments from the developer. Certificate of Completion - A document verifying the developer's compliance and completion of the project as stated in this agreement. Minimum Assessment Agreement - Setting the minimum assessed valuation of the property at $8,238,400. The Elk River Vision A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E H E U A Y engagement that encourages and inspires prosperity11112111 372