7.5 SR 06-17-2024 - Laserfiche WebLink

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DEVELOPMENT ASSISTANCE AGREEMENT THIS AGREEMENT (the "Agreement"), made as of the day of , 2024, by and among the CITY OF ELK RIVER, MINNESOTA (the "City"), a municipal corporation and political subdivision organized and existing under the Constitution and laws of the State of Minnesota, PLM PROPERTIES, LLC, a Minnesota limited liability company (the "Developer"), and HERITAGE MILLWORK, INC., a Minnesota corporation (the "Company"). WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Sections 469.124 through 469.134, the City has established Development District No. 1 (the "Development District") and has adopted a development program therefor (the "Development Program"); and WHEREAS, pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "Tax Increment Act"), the City has created Tax Increment Financing (Economic Development) District No. 29 (Heritage Millwork Development Project) (the "Tax Increment District"), and has adopted a tax increment financing plan therefor (the "Tax Increment Financing Plan") which provides for the use of tax increment financing in connection with development within the Development District; and WHEREAS, pursuant to the Tax Increment Act, the City is authorized to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, the City intends to convey certain property in the City (the "Development Property") to the Developer pursuant to a certain Purchase Agreement (the "Purchase Agreement") for the purposes of constructing an approximately 110,000 square foot industrial warehouse facility (the "Project") in accordance with the terms hereof to be operated by the Company, and has requested that the City accept the Purchase Price Note (as hereinafter defined) as payment for a portion of the Purchase Price (as hereinafter defined) for the Development Property; and WHEREAS, the City believes that the development of the Development Property pursuant to this Agreement and the fulfillment generally of this Agreement are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Development Program has been undertaken; and WHEREAS, in order to achieve the objectives of the Development Program and Tax Increment Financing Plan and particularly to make the land in the Development District available for development by private enterprise in conformance with the Development Program, the City has determined to provide substantial aid and assistance in connection with the Development Program and the Tax Increment Financing Plan by providing tax increment financing to pay the Purchase Price Note pursuant to the terms of this Agreement; and WHEREAS, the City, pursuant to Minnesota Statutes, Section 469.192, is authorized to make loans to qualifying businesses located within the City for economic development; and WHEREAS, the Developer has requested that the City exercise its authority and grant an energy rebate to the Developer (the "Energy Rebate") in accordance with the terms of this Agreement; and WHEREAS, the Purchase Price Note and the Energy Rebate constitutes a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 through 116J.995, as amended (the "Business 1 EL 185\77\951254.v6 Page 297 of 372