Agenda - Council - 01/13/2009 - Laserfiche WebLink

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