4.13 SR 07-15-2024 - Laserfiche WebLink

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EL185\61\949053.v3 SECOND AMENDMENT TO TAX INCREMENT DEVELOPMENT AGREEMENT THIS SECOND AMENDMENT TO TAX INCREMENT DEVELOPMENT AGREEMENT (the “Second Amendment”) is made and entered into this ____ day of July, 2024, between the CITY OF ELK RIVER, MINNESOTA, a municipal corporation organized and existing under the Constitution and laws of the State of Minnesota (the “City”), and MOYER PROPERTIES, LLC, a Minnesota limited liability company (the “Developer”), and their permitted assigns. RECITALS WHEREAS, the City and the Developer entered into that certain Tax Increment Development Agreement, dated as of October 5, 2020, as amended by that First Amendment to Tax Increment Development Agreement, dated as of June __, 2023 (together, “Original Agreement”), whereby the City provided the Developer with a Taxable Tax Increment Revenue Note (Shoot Steel, Inc. Project) in the amount of $190,000 (the “Original TIF Note”) 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 owned by the Borrower and leased to Shoot Steel, Inc., a Minnesota corporation (the “Tenant”); WHEREAS, the Original Agreement contains a Business Subsidy Agreement (the “Subsidy Agreement”) which sets forth certain job and wage goals in accordance with Minnesota Statutes, Section 116J.993 to 116J.995, as amended (the “Business Subsidy Act”). The Subsidy Agreement required the Tenant to 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”) within two years of the Benefit Date (the “Compliance Date”) pursuant to a certain lease between the Developer and the Tenant. The Original Agreement defined the Benefit Date as the date on which a certificate of occupancy is issued by the City for the Minimum Improvements and the City has determined the Benefit Date to be May 3, 2021; 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 adopting the First Amendment; WHEREAS, the Developer has informed the City that the Tenant will not be able to meet the Goals by the Amended Compliance Date; as of the Amended Compliance Date the Tenant will have only created or relocated 5 full-time equivalent jobs at an average salary of at least $18/hour excluding benefits; WHEREAS, due to the Tenant’s failure to meet the Goals, the City and the Developer desire to amend the Original Agreement 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; Page 256 of 389