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<br /> <br />Item Description <br />Consider Approving Tax Abatement and Business Subsidy with <br />United HealthCare Services, Inc. - Public Hearin <br /> <br />Item Number <br />6.2 <br /> <br />Prepared by <br />Catherine Mehelich, Director of <br />Economic Develo ment <br />Reviewed by <br />Scott Clark, Community Development <br />Director <br /> <br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Community Development December 18, 2006 <br /> <br />Introduction <br />A request for property tax abatement has been made by United HealthCare Services, Inc. for their <br />proposed data center project in Elk River. The attached staff report describes the proposed project, tax <br />abatement request and analysis that were reviewed by the EDA on December 8th. The EDA has <br />recommended the Council approve the tax abatement and business subsidy that has been negotiated. <br /> <br />Discussion <br /> <br />State statute requires local government agencies to hold a public hearing to receive comment on the <br />proposed tax abatement and business subsidy. <br /> <br />Financial Impact <br />The proposed data center project will significandy increase the city's tax base by adding approximately <br />$15-million of new taxable value. The City's financial assistance to the project is limited to 5% of the <br />project's completed market value, and is estimated to be extinguished in a 7 year term. <br /> <br />Attachments <br />. Staff report dated December 8, 2006 regarding EDA Recommendation <br />. Public hearing notice <br />. Resolution Approving Property Tax Abatements and Authorizing Execution of a Tax <br />Abatement and Business Subsidy Agreement <br />. DRAFT Tax Abatement and Business Subsidy Agreement <br /> <br />Action Requested <br />Following the public hearing, staff recommends that the Council consider approval of the attached <br />resolution approving property tax abatements and authorizing execution of a tax abatement and business <br />subsidy agreement. <br /> <br />Council Action <br /> <br />Motion by _ <br /> <br />Second by _ <br /> <br />Vote <br /> <br />Follow Up <br /> <br />S: \Industrial Siting\ UHC Data Center\ Tax Abatement\REQUEST COUNCIL ACTION.12.18.06.uhc.doc <br />