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<br />Item # 3.8. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br />FROM: Heidi Steinmetz, Assistant Director of Economic Development t6 <br /> <br />DATE: July 18, 2005 <br /> <br />SUBJECT: Call a Public Hearing to Consider Tax Rebate (Abatement) <br />Financing and Business Subsidy for Classic Acrylics Project <br /> <br />Attachment <br />. July 11, 2005 Staff Reportre: Classic Acrylics Project <br /> <br />Issue <br />At its July 11, 2005 meeting the EDA reviewed a request by Classic Acrylics for Tax Rebate <br />(Abatement) Financing from the City of Elk River in the amount of $75,000. The project <br />description and proposed terms of the assistance, including job and wage goals, are included <br />in the attached staff report to the EDA. The EDA directed staff to complete the due <br />diligence for processing the application and for the city's fmancial advisor, Ehlers & Assoc. <br />to complete a financial 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 Classic Acrylics project. <br />