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<br />Item # 3.6. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Catherine Mehelich, Director of Economic Developmen~ <br /> <br />DATE: July 18, 2005 <br /> <br />SUBJECT: Call a Public Hearing to Consider Tax Rebate (Abatement) <br />Financing and Business Subsidy for Crystal Distribution, Inc. <br />Project <br /> <br />Attachments <br />. July 11, 2005 Staff Report re: Crystal Distribution, Inc. Project <br /> <br />Issue <br />At its July 11,2005 meeting the EDA reviewed a request by Crystal Distribution, Inc. for <br />Tax Rebate (Abatement) Financing from the City of Elk River in the amount of $138,470. <br />The project description and proposed terms of the assistance, including job and wage goals, <br />are included in the attached staff report to the EDA. The EDA directed staff to complete <br />the due diligence for processing the application and for the city's fInancial advisor, Ehlers & <br />Assoc. to complete a Mancial analysis of the request. <br /> <br />MN State Statutes require public entities to hold a public hearing prior to awarding tax <br />abatement assistance. In addition, the MN Business Subsidy Law requires public entities to <br />hold a public hearing prior to granting a business subsidy over $100,000. A copy of the Tax <br />Rebate Financing application and recommendation will be provided at the Council's public <br />hearing. <br /> <br />Recommendation <br />The EDA and staff recommends that the Council call for a public hearing on August 15, <br />2005 at 6:30 p.m. to consider the Tax Rebate (Abatement) Financing request and business <br />subsidy for the Crystal Distribution, Inc. Project. <br />