Agenda - Council - 08/09/2005 - Laserfiche WebLink

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(i) Business Subsidies Act. (i) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the Business Subsidies Act), the Developer acknowledges and agrees that the amount of the Business Subsidy granted by the City to the Developer under this Agreement is One Hundred Twenty-five Thousand and 00/100 Dollars ($125,000) which is an amount equal to the financial assistance provided by the City that includes the Development Property, public improvements, and capitalized interest. 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 an economic development district and the public purpose of the Business Subsidy is to encourage the redevelopment of the Development Property in the City. The Developer agrees that it will meet the following goals (the "Goals"): It will create at least four (4) full time jobs in connection with the operation and maintenance of the Minimum Improvements at an hourly wage of at least $14.00 per hour within two years from the Benefit Date, which is the date of the building permit issued by the city for the construction of the Minimum Improvements. (ii) If the Goals are not met, the Developer agrees to repay all or a part of the Business Subsidy to the City, 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. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is four (4) (i.e. number of jobs set forth in the Goals). The Developer agrees to continue its operations consisting of the Minimum Improvements on the Development Property for at least five years after the Benefit Date. (iii) The Developer agrees to (i) report its progress on achieving the Goals to the City until the Goals are met, or the Business Subsidy is repaid, whichever occurs earlier, (ii) include in the report the information required in Subdivision 7 of the Business Subsidy Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the to the City. The Developer agrees to file these reports no later than January 1 of each year commencing January 1, 2005, 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 $1,000.