7.3 SR 03-01-2021 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 7.3 Agenda Section Meeting Date Prepared by Public Hearin March 1, 2021 Colleen Eddy, Economic Development Specialist Item Description Reviewed by Property Tax Abatement for Sportech LLC. Cal Portner, City Administrator Reviewed by Action Requested 1. Open public hearing to consider comment on the proposed property tax abatement assistance for Sportech, LLC. 2. Following the public hearing, the Council is asked to consider adoption of the attached resolution approving property tax abatements and authorizing execution of a tax abatement agreement for Sportech, LLC. Background/Discussion The City Council must hold a public hearing and invite comments for any business subsidy in the amount greater than $150,000. The attached staff report provides background on the project as considered and recommended for approval by the EDA on February 16, 2021, for property tax abatement. Financial Impact The owner, Meritex, proposes an $8,388,775 million project funded through private funds, owner cash equity and city/county tax abatement of $769,875 for up to 14 years with no more than $362,880 from the city. Mission/Policy/Goal The purpose of the tax abatement assistance is to provide financial and technical assistance for the creation and retention of new employment to an existing business located in the community. Attachments ■ EDA staff memo (February 16, 2021) ■ Resolution Approving Property Tax Abatement for Sportech LLC. ■ Financial Analysis ■ Tax Abatement Agreement ■ Executed Tax Abatement Application ■ Meritex Lease Agreement ■ Second Amendment to Sportech Lease ■ 2021 B2 Expansion ■ Sportech Expansion Proposal The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e service, and community engagement that encourages and inspires pi ospei ly INAWRE1