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City of Elk River <br />City Council <br />Resolution 24-35 <br />A Resolution of the City Council of the City of Elk River Approving a <br />Development Assistance Agreement with PLM Properties, LLC and <br />Heritage Millwork Inc. <br />BE IT RESOLVED by the City Council (the "City Council") of the City of Elk River, <br />Minnesota (the "City") as follows: <br />Section 1. Recitals. <br />1.01. On June 3, 2024, following a duly noticed public hearing, the City established <br />Tax Increment Financing District No. 29 (the "TIF District"), an economic development <br />district within Development District No. 1 in the City, and adopted a Tax Increment <br />Financing Plan therefor. <br />1.02. PLM Properties, LLC, a Minnesota limited liability company, or an affiliate <br />thereof or an entity related thereto (the "Developer"), plans to purchase certain real property <br />in the TIF District (the "Property"), which is currently owned by the City. <br />1.03. The Developer proposes to acquire the Property from the City and <br />construct, improve and equip thereon an approximately 110,000 square foot industrial <br />warehouse facility (the "Project") to be owned by the Developer and operated by Heritage <br />Millwork Inc., a Minnesota corporation (the "Company"). <br />1.04. To make the Project financially feasible, the Developer has requested that the <br />City (i) accept a purchase price note from the Developer in the amount of $1,378,019.60 <br />evidencing the Developer's obligation to repay a loan for a portion of the $1,378,020.60 <br />purchase price for the Property (the "Purchase Price") with interest (the "Purchase Price <br />Note"); and (ii) exercise its authority and grant an energy rebate to the Developer (the <br />"Energy Rebate"), both in accordance with the terms and conditions set forth in that certain <br />Development Assistance Agreement, by and between the City, the Developer, and the <br />Company (the "Agreement"). <br />1.05. The assistance provided to the Developer and the Company pursuant to the <br />Agreement in the form of the Purchase Price Note and the Energy Rebate (collectively, the <br />"Assistance") constitutes a business subsidy within the meaning of Minnesota Statutes, <br />Sections 116J.993 to 116J.995, as amended (the `Business Subsidy Act"), and on this date <br />hereof the City Council held a duly noticed public hearing on the Assistance. The <br />Agreement includes a business subsidy agreement whereby the Developer and the Company <br />shall agree to meet certain job and wage goals in connection with the Assistance as required <br />P R M E R E O R r <br />N'AWREJ <br />Page 291 of 372 <br />