5.1. SR 02-19-2008 - Laserfiche WebLink

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for the Developer to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to create jobs and increase the tax base in the City. The Developer agrees that it will cause E & O Tool & Plastics, Inc. (the "Tenant") to meet the following goals (the "Goals"): in addition to the existing 124 full time equivalent jobs the Tenant will maintain, it will create at least twenty-five (25) new full time equivalent jobs in connection with the development of the Project at a wage of at least $15.00 per hour, [which includes benefits not required by law,] within two years from the Benefit Date. (2) If none of the Goals are met, the Developer agrees to repay all of the Business Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is least twenty-five (25) (i.e. number of jobs set forth in the Goals). (3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2009, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. (4) The Developer agrees to cause the Tenant to continue operations of the Project for at least five (5) years after the Benefit Date. (5) In addition to the Tax Abatements provided by the City and comparable tax abatements from the County, [the Economic Development Authority of the City of Elk River, Minnesota will provide a $75,000 micro loan to the Developer for the Project][Delete if not approved]. (6) There is no parent corporation of the Developer or the Tenant. 2138910v2 7