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`Elk ,.,� Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority 6.9 <br /> Agenda Section Meeting Date Prepared by <br /> General Business January 21, 2014 Brian Beeman, Director of Economic <br /> Development <br /> Item Description Reviewed by <br /> Bank of Elk River Amended Business Subsidy Jeremy Barnhart, Deputy Director, CODD <br /> Agreement Reviewed by <br /> Action Requested <br /> Approve by motion, the Amended Business Subsidy Agreement and recommend to the City Council on <br /> same. <br /> Background/Discussion <br /> At its December 16, 2013 regular meeting,the EDA directed staff to work with the Bank of Elk River to <br /> amend the current Business Subsidy Agreement to reduce the number of jobs required to the 13 achieved <br /> by the Bank in December 2010, allow tax abatement payments to continue as contemplated under the <br /> Agreement up to a maximum of$195,000 within the 12 year period provided under the Agreement,and <br /> to consult with the Bank on how they would like the remainder of the abatement paid out. <br /> Staff has completed the amendment,which the Bank has signed. Upon the approved amended agreement <br /> being signed by both parties, the abatement payments will continue as they have in the past until a <br /> maximum of$195,000 has been met or the 12 year period has been reached as per the Subsidy <br /> Agreement,whichever comes first. Once either of these terms has been met, the tax abatement will cease. <br /> The City will invoice the Bank of Elk River as agreed to in the revised agreement to be reimbursed for all <br /> legal fees associated with this project. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • Bank of Elk River Staff Memo from December 16,2013. <br /> • Copy of Revised Business Subsidy Agreement. <br /> P 9 1 E 1 E 1 I T <br /> NAME <br />