Agenda - Council - 08/26/2003 - Laserfiche WebLink

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(h) Business Subsidies Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 1 t6J.995 (the Business Subsidies Act), the~,Developer acknowledges and agrees that the amount of the Business Subsidy granted by ~:he City to the Developer under this Agreement is up to $306,961 which is an amount equal to the fair market value of the Development Property, site improvements, capitalized interest and city fees. The Developer further acknowledges that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The Tax Increment District is a redevelopment district and the public purpose of the Business Subsidy is to encourage the redevelopment of the property in the City. The Developer agrees that it will meet the following goals (the "Goals"): It will create at least 12 full time jobs in connection with the development of the Development Property at an hourly wage of at least $12.00 per hour within two years from the Benefit Date, which is the date of the building permit issued by the city for the redeveiopment of the property. (2) The Business Subsidy will be provided to the Developer by the City through the issuance of a Tax Increment Revenue Note. The principle amount of the note shall be paid solely from Tax Jacremen~s generated from the Developer's project. If the Goals are not met by the Developer, the City reserves the right to suspend payments on the Note and the note will be considered "paid in full." (3) The Developer agees to (i) report its progress on achieving the Goals to the City until the Goals are met, or the Business Subsidy is repaid, wlzichever occm's earlier, (ii) include in the report the information required in Subdivision 7 of the Jobs Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the Cormnissioner of the Department of Employment and Economic Development and to the City. The Developer agrees to file these reports no later than January 1 of each year commencing January 1, 2004, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of $3,000. (4) The Developer agrees to continue operations on the Development Property for at least five (5) years after the Benefit Date. There are no other state or local government agencies providing financial assistance for the Project other than the City. -121-