3.6. SR 04-10-2006 - Laserfiche WebLink

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City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Consent April 1 0, 2006 Item Number 3.6.* Prepared by Catherine Mehelich, Director of Economic Develo ment Reviewed by Scott Clark, Community Development Director Introduction On November 21,2005 the City Council awarded a pay-as-you-go tax abatement and business subsidy up to $133,947 for the Quality Label and Barcode, Inc. project which includes the construction of a 25,000- square foot light industrial building located in the Elk River Business Park. Sherburne County also provided tax abatement toward the project in a matching amount. Jon Jacobs, one of the owners of Quality Label and Barcode, Inc., has requested that the City of Elk River authorize an assignment of the Tax Abatement payments to its lender Great Northern Bank. The Tax Abatement and Business Subsidy Agreement, dated February 28,2006, between the City and Jon Jacobs requires written approval from the City of any transfer or assignment of the Agreement. Discussion An assignment of tax abatement and tax increment financing payments is quite common among other cities and development projects. Financial Impact There is no financial impact to the City by granting the assignment. The assignment simply authorizes all tax abatement payments to be made direcrly to Great Northern Bank rather than Jon Jacobs. Attachments . Assignment of Tax Rebates Action Requested Staff recommends that the City Council approve the request for assignment and authorize the Mayor and City Administrator to execute the Assignment of Tax Rebates from Jon Jacobs to Great Northern Bank. Council Action Motion by _ Second by _ Vote Follow Up S:\Industrial Siting\Quality Label\TRF\4.1O.06 CC Assignment.doc