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REQUEST FOR ACTION <br />To Item Number <br />Ci Council 5.2. <br />Agenda Section Meeting Date Prepared by <br />Community Development February 19, 2008 Catherine Mehelich, Director of <br /> Economic Develo ment <br />Item Description Reviewed by <br />Consider Resolution Authorizing Execution of an Amendment Lori ohnson, Ci Administrator <br />to Tax Abatement and Business Subsidy Agreement with Mowry Reviewed by <br />Properties, LLC <br />Action Requested <br />The City Council is asked to consider approval of the attached Resolution Authorizing Execution of an <br />Amendment to Tax Abatement and Business Subsidy Agreement with Mowry Properties, LLC. An <br />amendment of the agreement is necessary in order to redefine the subject tax abatement property as a <br />result of the pending sale of a portion of the previously defined property. <br />Background/Discussion <br />In August 2007 the City of Elk River entered into a Tax Abatement and Business Subsidy Agreement <br />with Mowry Properties, LLC to provide financial assistance to the planned relocation and expansion of <br />Metal Craft Machine and Engineering on an approximately 9-acre portion of the 17-acre Sandpiper <br />Business Park. While the amount of tax abatement provided to Mowry Properties, LLC was limited only <br />to the portion occupied by the Metal Craft expansion project, the agreement allowed for the tax revenues <br />generated from the entire parcel to extinguish the tax abatement note earlier, until subdivided and sold. <br />Mowry Properties, LLC is undergoing the process to plat and subdivide the property into two lots, of <br />which the easterly 7-acre lot is proposed to be acquired by Caswell and Osterman Properties, LLC for the <br />relocation and expansion of E & O Tool. Therefore, it is necessary to amend the agreement to redefine <br />the tax abatement property with the proposed legal description. <br />Attachments <br />^ Resolution Authorizing Execution of an Amendment to Tax Abatement and Business Subsidy <br />Agreement <br />^ First Amendment to Tax Abatement and Business Subsidy Agreement <br />Tax Abatement and Business Subsidy Agreement with Mowry Properties, LLC <br />Action Motion by Second by Vote <br />FOllow Up <br />C:\Documents and Settings\jjohnson\Local Settings\Temporary Internet Files\OLK49\2 19 US Mowry Action Requested (2).doc <br />