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<br />E~ <br />River <br /> <br />REQUEST FOR ACTION <br /> <br />To <br />Economic Develo ment Authori <br /> <br />Item Number <br />5 - 5.1 - 5.2 <br /> <br />Prepared by <br />Catherine Mehelich, Director of <br />EconomicDevelo ment <br /> <br />Agenda Section Meeting Date <br /> <br />Item Description <br />Consider Sportech, Inc. Expansion Project - Public Hearing <br />- Consider Disposition of EDA Property and Business Subsidies <br />- Consider Micro Loan <br /> <br /> <br />Administrator <br /> <br />Action Requested <br />The EDA is asked to hold a public hearing to consider comment on the disposition of EDA property <br />and on the proposed business subsidies for the project. <br /> <br />Following the public hearing, the EDA is asked to consider approval of the following actions regarding <br />the Sportech, Inc. expansion project: <br />1) Resolution Authorizing the Sale of Land <br />2) Resolution Authorizing Execution of Abatement Agreements <br />3) $100,000 Micro Loan as recommended by EDA Finance Committee <br /> <br />Background/Discussion <br /> <br />Sale of EDA Property <br />Attached for your review is the purchase agreement that has been prepared by the EDA's attorney at <br />Briggs & Morgan, and since executed by Envision Company, LLC. <br /> <br />In summary, the purchase agreement allows for the 929-acte lot to be sold upfront to Envision Company, <br />LLC for the purchase ptice of$1.00, conditioned upon approval from the City of Elk River and <br />Sherburne County to reimbmse the land at market value in the amount of $809,345 at 6% interest through <br />tax abatement revenues generated for up to 10-years as a result of the project. The City Council is <br />scheduled to hold a public hearing and consider approval of the tax abatement at its April 21, 2008 <br />meeting. Sherburne County will schedule its public hearing and consider approval late April/early May. <br /> <br />In addition, the purchase agreement includes the statutory provisions for the sale of EDA property_ MN <br />Statutes requires the EDA to provide notice and hold a public hearing prior to the sale of property, review <br />building plans and specs, and a reversion clause if the project is not completed as agreed. <br /> <br />Financial Impact <br />Development costs for the Northstar Business Park have been paid off by previous lot sales and the <br />$400,000 MN Employment & Economic Development Public Infrastructure Gtant, to afford the EDA <br />the ability to provide the 9.29-acre lot in the form of up front assistance for this unique project. <br /> <br />S:\Industrial Siting\Sportech Expansion II\Memos\4.1408 EDA Action Requested doc <br />