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City Council Minutes Page 3 February 6, 2006 ----------------------------- based on only the new market value generated as a result of the expansion project for a maximum of 12 years, along with The Bank’s commitment to create 20 new full-time positions at a minimum hourly wage of $15.00 within two years of project completion. Ms. Mehelich explained that normally, a financial but for analysis would be completed to determine the amount of public assistance necessary for the project to proceed but this application is being processed under the premise that The Bank is incurring substantial additional construction costs by converting the existing facility rather than building on land it owns in Otsego. Ms. Mehelich noted that the Sherburne County Economic Development Alliance (SCEDA) considered The Bank’s request for tax abatement from the County at their January 25, 2006 meeting and adopted a motion to recommend to the Sherburne County Board of Commissioners approval of up to $300,000 in tax abatement for a maximum of 10 years. Mayor Klinzing opened the public hearing. There being no one to speak on this issue, Mayor Klinzing closed the public hearing. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO ADOPT RESOLUTION 06-14 AUTHORIZING EXECUTION OF A TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT. MOTION CARRIED 5-0. Pat Dwyer, Senior Vice President of The Bank of Elk River – thanked the City Council and stated that The Bank is looking forward to their expansion and hopes to get it started soon. 5.3. Resolution 06-15 Providing for the Issuance and Sale of #3,595,000 Electric Revenue Bonds, Series 2006A and Pledging Net Revenues for the Security Thereof City Administrator Lori Johnson explained that the Utilities Commission held a special meeting earlier this afternoon to consider bids for the bond sale of $3,595,000 Electric Revenue Bonds. Sid Inman, Senior Vice President of Ehlers & Associates – reviewed the bid results. Mr. Inman indicated that nine bids were received and the recommendation is to award the bid to the lowest bidder, Northland Securities, Inc. of Minneapolis, Minnesota. Councilmember Dietz questioned if the Utilities Commission would have received a better interest rate by using the city’s A1 bond rating rather than obtaining their own rating of A2. Mr. Inman indicated that the city’s bond rating cannot be used for Electric Revenue Bonds. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER FARBER TO ADOPT RESOLUTION 06-15 CONCURRING IN THE ACTION OF THE BOARD OF COMMISSIONERS OF THE PUBLIC UTILITIES COMMISSION OF THE CITY OF ELK RIVER, MINNESOTA, IN PROVIDING FOR THE ISSUANCE AND SALE OF $3,595,000 ELECTRIC REVENUE BONDS, SERIES 2006A. MOTION CARRIED 5-0.