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<br />BUSINESS SUBSIDY AGREEMENT <br /> <br />This Business Subsidy Agreement (this "Agreement") is made as of the day of <br />. 2001. between the , Minnesota (the "Grantor") and <br />'. (the "Recipient"). In order to satisfy the provisions of Minnesota Statutes, <br />Sections 116J.993 through 166J.995 (the "Act"). the Recipient acknowledges and agrees as follows: <br />. . . <br /> <br />1. Description of the Business Subsidy. <br /> <br />(a) The Project. The Recipient will be undertaking the following project within the Grantor's <br />area of operation: The acquisition and renovation and rehabilitation of. and <br />related site improv~ments (the "Project"). . <br /> <br />(b). Type of Business Subsidy. The Business Subsidy consists of the following assistance to <br />t.he Recipient for the Project: Tax Increment Financing contribution for land acquisition. environmental. <br />remediation and building demolition and assistance for costs of construction of storm sewer <br />. improvements (the "Business Subsidy"). <br /> <br />(c) Amount of the 8usiness Subsidy.. The amount of the Business Subsidy granted tot he <br />Recipient under this agreement has a value of $ . This is based upon a $ <br />Tax Increment contribution, for Public Redevelopment Costs related to the Project and $ for <br />storm sewer improvements to be constructed as part of the Project. . <br /> <br />(d) Type of Tax Increment Financing District. The Tax Increment District in which the <br />Project is located is a "redevelopment district" within the meaning of the Tax Increment Financing Act, <br />Minnesota Statues. Sections 469.174 through 469.179. <br /> <br />2. Public Purpose for the Business Subsidy. The public purpose of this Business Subsidy <br />is to redevelop blighted areas. <br /> <br />3. Why the Business SubsidY is Needed. The Business Subsidy is needed because the <br />Grantor is desirous of Recipient un.dertaking the Project in order to redeVelop blighted property in the <br />Grantor's area of operation and the Project is not economically feasible for the Recipient to undertake <br />without the Business Subsil!:ly. <br /> <br />4. Job and Waoe Goals for the Business Subsidy. Recipient agrees to create at least <br />_ full time equivalent jobs and a wage rate at least equal to or exceeding the rate outlined in the <br />adopted business subsidy policy within two years of the benefit date. Following a public hearing the <br />Grantor may determine that the creation or retention of jobs is not a goal of providing the Business <br />Subsidy and the wage and job goals forthe Business Subsidy are then set at zero. <br /> <br />5. Continued Operations. The Recipient agrees to continue its operations at the location of <br />the Project for at least five years after the Benefit Date. As used herein "Benefit Date" means the date <br />the Business Subsidy is received. The Business Subsidy is for improvements to property, therefore the <br />Benefit Date refers to the earliest of either:, when the improvements are finished for the entire Project; <br />or when the Recipient occupies the property. <br /> <br />6. Financial Oblioation of the Recipient if Does Not Fulfill this Aoreement. If the Recipient <br />does not fulfill this Agreement, the Recipient will repay all of the Business Subsidy to the Grantor plus <br />interest ("Interest") set at the implicit price deflator defin~d in Minnesota Statutes, Section 275.70, <br />Subdivision 2. accruing from and after the Benefit Date, compounded semiannually. <br /> <br />43 <br />