HomeMy WebLinkAbout7B Versatile Vehicles
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 16-XXX
A RESOLUTION APPROVING TAX ABATEMENT
AND A BUSINESS SUBSIDY AGREEMENT FOR VERSATILE VEHICLES
Motion By: Second By:
WHEREAS, Minnesota Statues 116J.993 – 116J.995 (“Minnesota Business Subsidy Law”)
allows a City to adopt a Business Subsidy Policy to establish guidelines and criteria
regarding the use of business subsidies, such as tax increment financing, tax
abatement, and other business subsidies for private development projects within
the City of Prior Lake; and
WHEREAS, On August 26, 2013 the City adopted an Amended Business Subsidy Policy; and
WHEREAS, The purpose of the Business Subsidy Policy is to achieve one or more public
purpose objectives; and
WHEREAS,
WHEREAS,
WHEREAS,
Versatile Vehicles, Inc. has requested the City of Prior Lake approve a request for
Tax Abatement to assist with property acquisition costs related to the development
of an industrial property in the Deerfield Business Park; and
Scott County, Minnesota will also be asked to conduct a duly noticed public hearing
on property tax abatement proposed to be provided by Scott County and consider
granting Versatile Vehicles, Inc. a property tax abatement for the proposed
development; and
The proposed project will achieve more than one public purpose objective,
including specifically, the retention and creation of local jobs with a number and
diversity that will offer stable employment and attractive wages and benefits; the
enhancement and diversification of the City of Prior Lake’s tax base; and achieve
development on a site that would not be developed without business subsidies
assistance; and
WHEREAS,
WHEREAS,
WHEREAS,
There has been presented before the City Council a Business Subsidy Agreement
by and between the City, Versatile Vehicles, Inc. and Versatile Property
Enterprises, LLC: which details a Tax Abatement and Economic Development
Authority Revolving Loan request; and
The Business Subsidy Agreement provides for certain financial assistance by the
City that constitutes a “business subsidy” exceeding $150,000 within the meaning
of the Minnesota Business Subsidy Law; and
The City has on this date conducted a duly noticed public hearing regarding the
Tax Abatement request and business subsidy agreement at which all interested
persons were given an opportunity to be heard; and
2
WHEREAS,
WHEREAS,
The City Council has reviewed the Tax Abatement request and Business Subsidy
Agreement and finds that approval of the Tax Abatement request and the Business
Subsidy Agreement is in the best interest of the City and its residents; and
The City desires to provide Versatile Vehicles, Inc. a business subsidy in the form
of Tax Abatement and an Economic Development Authority (EDA) deferred loan.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Tax Abatement request and Business Subsidy Agreement as presented to the City
Council is hereby in all respects approved, subject to modifications that do not alter the
substance of the transaction and that are approved by the Mayor and City Manager,
provided that execution of the document by such officials shall be conclusive evidence of
approval.
3. The Mayor and City Manager are hereby authorized to execute on behalf of the City any
documents needed to carry out the Business Subsidy Agreement requiring execution by the
City.
PASSED AND ADOPTED THIS 8th DAY OF AUGUST, 2016.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager