Laserfiche WebLink
!'+/i <br />City of <br />Elk -..-^ <br />River <br />REQUEST FO R ACTIO N <br />To Item Number <br />Economic Develo ment Authori 5 - 5.1 - 5.2 <br />Agenda Section Meeting Date Prepared by <br /> Catherine Mehelich, Director of <br /> Economic Develo ment <br />Item Description Reviewed by <br />Consider Sportech, Inc. Expansion Project -Public Hearing Lori ohnson, Ci Administrator <br />- Consider Disposition of EDA Property and Business Subsidies Reviewed by <br />-Consider Micro Loan <br />Action Requested <br />The EDA is asked to hold a public hearing to consider comment on the disposition of EDA property <br />and on the proposed business subsidies for the project. <br />Following the public hearing, the EDA is asked to consider approval of the following actions regarding <br />the Sportech, Inc. expansion project: <br />1) Resolution Authorizing the Sale of Land <br />2) Resolution Authorizing Execution of Abatement Agreements <br />3) $100,000 Micro Loan as recommended by EDA Finance Committee <br />Background/Discussion <br />Sale of EDA Property <br />Attached for your review is the purchase agreement that has been prepared by the EDA's attorney at <br />Briggs & Morgan, and since executed by Envision Company, LLC. <br />In summary, the purchase agreement allows for the 9.29-acre lot to be sold upfront to Envision Company, <br />LLC for the purchase price of $1.00, conditioned upon approval from the City of Elk River and <br />Sherburne County to reimburse the land at market value in the amount of $809,345 at 6% interest through <br />tax abatement revenues generated for up to 10-years as a result of the project. The City Council is <br />scheduled to hold a public hearing and consider approval of the tax abatement at its April 21, 2008 <br />meeting. Sherburne County will schedule its public hearing and consider approval late April/early May. <br />In addition, the purchase agreement includes the statutory provisions for the sale of EDA property. MN <br />Statutes requires the EDA to provide notice and hold a public hearing prior to the sale of property, review <br />building plans and specs, and a reversion clause if the project is not completed as agreed. <br />Financial Impact <br />Development costs for the Northstar Business Park have been paid off by previous lot sales and the <br />$400,000 MN Employment & Economic Development Public Infrastructure Grant, to afford the EDA <br />the ability to provide the 9.29-acre lot in the form of upfront assistance for this unique project. <br />S:\Industrial Siting\Sportech Expansion II\Memos\4.14.08 LllA Action Requested.doc <br />