HomeMy WebLinkAbout9A PLate Business Subsidy Agreement Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 11, 2017
AGENDA #: 9A
PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR
PRESENTED BY: CASEY MCCABE
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A BUSINESS SUB-
SIDY AGREEMENT TO ASSIST WITH COSTS RELATED TO REDEVELOPMENT
OF A PROPERTY LOCATED AT 16323 MAIN AVENUE SE
DISCUSSION:
Introduction
The purpose of this agenda item is to consider approval of a resolution approving a
Business Subsidy Agreement for PLate on Main, LLC.
History
City staff has been meeting with Lori & Bill Peterson over the summer and fall to
discuss a proposed downtown redevelopment project. The project includes demo-
lition of a single-family home at 16323 Main Avenue SE and construction of an ap-
proximate 3,500 SF restaurant on the property. The developers have twice met with
the EDA to share their vision for the restaurant, highlighting the potential value of
their investment in the downtown area, the value of their investment for the entire
community, and to review the project costs and the gap between the actual con-
struction costs and their initial budget.
Current Circumstances
PLate on Main, LLC is proposing to construct a new 3,500 square foot one-story
restaurant and 750 square foot patio to be operated as PLate at 16323 Main Avenue
SE. The property had been occupied by a single-family residential structure and is
in the TC, Town Center Use District.
In accordance with Minnesota Statute 116J.993 – 116J.995 (Minnesota Business
Subsidy Law), the City Council adopted a Business Subsidy Policy on October 18,
2004, which has been amended multiple times, most recently on August 26, 2013.
The policy establishes guidelines and other criteria regarding the use of business
subsidies, such as tax increment financing, tax abatement, loans and other business
subsidies for private development projects within the City of Prior Lake. On August
26, 2013 the City also adopted a Local Business Incentives Policy establishing
guidelines and criteria regarding the use of local business incentives that are not
subject to the requirements and limitations set forth by provision of Minn. Stat.
116J.993-116J.995.
PLate on Main, LLC has applied for a business subsidy under the City’s Local Busi-
ness Incentives Policy to assist with certain redevelopment costs.
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Staff has worked with the EDA to identify areas where the City of Prior Lake can
assist with the redevelopment costs. Two funding sources have been identified; the
Tax Increment Fund 402 (TIF1-1) and the EDA Special Revenue Fund 240.
The TIF 1-1 district was modified by the City Council in August 2012. As part of the
modification, the City identified 24 parcels within the boundaries of Municipal Devel-
opment District No. 1 where the city could utilize tax increment funds from TIF Dis-
trict 1-1 to assist with redevelopment within the Development District. The property
located at 16323 Main Avenue SE was included among the 24 identified parcels.
Eligible uses of the tax increment funds include, property acquisition; building dem-
olition; site cleanup; and/or public infrastructure. The approximate balance of the
TIF 1-1 fund is $75,000. The EDA Special Revenue Fund reserves are assigned for
development use. The use of funds for this business subsidy agreement meets the
requirements of each fund.
The EDA is proposing the City Council consider the following opportunities to assist
this downtown redevelopment project. The costs identified are supported by esti-
mates provided by the property owner or city staff.
➢ Demolition of residential home ($27,206)
It is well known that redevelopment entails greater expense than green devel-
opment and demolition expenses are a primary reason. The EDA is recom-
mending the City of Prior Lake assist the redevelopment project by providing
funds to reimburse the developer for demolition costs. The cost includes the
demolition bid ($20,706), building survey to identify potential hazardous materi-
als ($1,500) and asbestos abatement (cost estimated at $5,000).
➢ Soil corrections ($25,833)
The EDA is recommending the city assist with the costs of soil corrections, in-
cluding the removal of current soils and replacement with clean soils, as initial
soil studies have identified a need. The city has assisted in this regard for other
projects.
➢ Storefront Façade Grant ($25,000)
The property owner has indicated a desire to use high quality exterior building
materials; however, exterior materials which meet the City’s downtown design
guidelines exceed the funding amount the property owner has budgeted for fa-
çade materials. The EDA is proposing the City of Prior Lake provide a $25,000
storefront façade grant, similar to the program previously offered in the down-
town. This proposal is consistent with previous city action for downtown busi-
nesses.
➢ Sidewalk & Curb Concrete ($20,761)
The EDA recommends assisting the redevelopment project with the eliminating
the two curb cuts along Main Avenue, creating a new curb cut along Pleasant
Street and replacing the sidewalk located adjacent to the redevelopment parcel.
This action is aesthetic, enhances the public safety and reduces city liability.
➢ Street Lighting ($18,000)
The developer has requested, and the EDA supports, additional lighting for side-
walks and street parking at the corner of Main Ave./Pleasant Ave. and near the
on-street parking stalls on Pleasant Avenue; exact locations to be determined.
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The decorative downtown light poles are proposed. This action also improves
public safety and aesthetic.
Conclusion
To summarize, it is the EDA’s position that the following unique project costs are
eligible for assistance and should be considered by the City Council.
Project Amount Funding Source
Demolition $27,206 TIF 1-1
Soil Corrections $25,833 TIF 1-1
Storefront Façade $25,000 TIF 1-1 & EDA Reserves
Sidewalk & Curb Concrete $20,761 EDA Reserves
Street Lighting $18,000 EDA Reserves
TOTAL $116,800
The Business Subsidy Agreement has been drafted to provide flexibility within each
of the eligible project categories, which will allow use of a greater or smaller per-
centage of the funds on an individual project item. Should one of the expenditures
come in under budget or one of the expenditures cost more than anticipated, PLate
on Main will have ability to reduce the amount of funding in one project area and
apply the funding to another item.
The actual gap in the petitioner’s development proposal is considerably more than
the amounts the EDA is proposing. However, the precedence for the incentives pro-
posed are both well established and well-reasoned.
The project costs identified above will be provided to the developer following suc-
cessful completion of each item, except for the street lighting, which will be com-
pleted by the city. The city business subsidy funds will be secured with a Personal
Guaranty from the developer and funds will not be disbursed to the developer until
the work has been completed and the developer has provided proof of payment to
contractors. The funds will be provided as a deferred loan at 0.0% interest with no
payments required for two years. If the developer meets the project goals, the busi-
ness subsidy will be forgiven at the end of the two-year term. If the developer fails
to meet the project goals, repayment of the loaned funds may be required at the
discretion of the City Council.
The proposed development would achieve several Public Purpose Objectives iden-
tified in the Local Business Subsidy Policy, including:
➢ To enhance and diversify the City’s tax base;
➢ To provide employment opportunities in the City;
➢ To help provide access to services for residents of the City;
➢ To achieve development on a site that may not be developed without business
subsidies assistance;
➢ To remove blight and/or encourage development of a commercial area in the
City that results in higher quality development and private investment; and
➢ To offset increased costs of development of a specific property when the unique
physical characteristics of the site may otherwise preclude private investment.
The EDA reviewed the proposed project on November 13, 2017, prior to the sub-
mittal of the application. The EDA reviewed the feasibility of the project and the
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ISSUES:
FINANCIAL
IMPACT:
applicant’s preliminary request for business subsidy assistance related to soil cor-
rection and site development costs. Following their review, the EDA unanimously
approved a motion recommending the City Council approve the redevelopment as-
sistance package in an amount not to exceed $116,800.
This year’s July community survey clearly indicated a desire for more restaurants in
Prior Lake. This project presents an opportunity to take a step forward in this direc-
tion. Survey respondents also expressed support for the city offering financial incen-
tives to accomplish development and redevelopment objectives.
The developer is proposing a limited amount of employee and delivery parking stalls
at the rear of the property. The project is located in the Town Center use district so
no off-street parking stalls are required. The addition of the restaurant will certainly
increase parking competition downtown, primarily in evenings and weekends. City
staff believes the 15 off-street public stalls across Main Avenue, the on-street public
parking along Pleasant Street and the publicly owned lot on Colorado Street can
help to mitigate this challenge.
Although the applicants expect the creation of new employment positions because
of this project, the purpose of the business subsidy is for site development costs.
For that reason, the creation and retention of jobs has not been identified as a goal
of this business subsidy. Wage and job goals have been set at zero in the Business
Subsidy Agreement, pursuant to Minnesota Statutes 116J.994, Subd. 4.
The Local Business Incentives Policy requires anyone receiving a business incen-
tive between $5,001 and $149,999 to enter into an agreement with the City. The
Prior Lake City Attorney has assisted in the development of the Business Subsidy
Agreement to ensure conformance with the City’s policy.
The total business subsidy assistance provided by the City of Prior Lake is up
to $116,800 based on certified site development costs. Costs related to the
proposed assistance package would impact the EDA reserve fund and would
utilize the ma-jority of the TIF 1-1 district fund balance.
ALTERNATIVES: 1. Motion and a second to approve a resolution approving the allocation of EDA
reserve funds, authorizing the use of Tax Increment 1-1 Funds and authorizing
the Mayor and City Manager to enter into a Business Subsidy Agreement with
PLate on Main, LLC.
2.Motion and a second to deny the resolution approving the Business Subsidy
Agreement with PLate on Main, LLC.
3.Motion and a second to table action to a future date and provide direction to
staff.
RECOMMENDED
MOTIONS:
Alternative #1
ATTACHMENTS: 1. Application for Financial Assistance
2.Business Subsidy Agreement
3.Location Map
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4. Proposed Site Plan
5. Proposed Building Elevations
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
A RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT
TO ASSIST WITH COSTS RELATED TO REDEVELOPMENT OF A PROPERTY
LOCATED AT 16323 MAIN AVENUE SE
Motion By: Second By:
WHEREAS, Minn. Stat. §§ 116J.993 – 116J.995 authorize the City to grant business subsidies,
such as tax increment financing, tax abatement, and other business subsidies for
private development projects, in order to achieve a public purpose; and
WHEREAS, on August 26, 2013 the City adopted an Amended Business Subsidy Policy in
compliance with Minn. Stat. § 116J.994, Subd. 2; and
WHEREAS,
on August 26, 2013 the City adopted a Local Business Incentives Policy establishing
guidelines and criteria regarding the use of local business incentives that are not
subject to the requirements and limitations set forth by provision of Minn. Stat.
116J.993-116J.995; and
WHEREAS,
WHEREAS,
PLate on Main, LLC, has applied for a business subsidy under the City’s Local
Business Incentives Policy to redevelop the property located at 16323 Main Avenue
SE, Prior Lake, MN 55372, legally described as Lot 2, Block 1, Cates Addition (PID
250020030) (“Project Site”), and to construct on the Project Site an approximate
3,500 square foot building from which to operate a restaurant (“Project”); and
Prior Lake Revival has applied for a business subsidy in the form of a deferred loan
to assist with costs related to, i) demolition of single-family residential home; ii) soil
corrections; iii) storefront façade improvements; iv) sidewalk and curb concrete work;
v) street lighting; and vi) utility connection and relocation; and
WHEREAS,
there has been presented before the City Council a Business Subsidy Agreement by
and between the City of Prior Lake, the City of Prior Lake Economic Development
Authority and PLate on Main, LLC setting forth the terms of the proposed business
subsidy; and
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. Based upon the information presented, the City Council makes the following findings:
a. the Project will achieve several public purpose objectives, including specifically, to
enhance and diversify the City’s tax base, to provide employment opportunities in
the City, to help provide access to services for residents of the City, to achieve
development on a site that may not be redeveloped without business subsidies
assistance; to remove blight and/or encourage development of a commercial area
in the City that results in higher quality development and private investment; and
2
to offset increased costs of development of a specific property when the unique
physical characteristics of the site may otherwise preclude private investment.
b. the Project is consistent with the City 2030 Comprehensive Plan and Vision
Statement.
c. the creation and retention of jobs is not a goal of this business subsidy; therefore,
the wage and job goals are set to zero pursuant to Minn. Stat. § 116J.994, Subd. 4.
3. Based upon the recitals and the findings both set forth above, the City Council approves
a business subsidy in the form of a deferred loan to PLate on Main, LLC as set forth in the
Business Subsidy Agreement in an amount not to exceed $116,800.00.
4. The City Council authorizes the use of Tax Increment Fund 402 (TIF 1-1) to assist this
redevelopment project in an amount not to exceed $70,000.00.
5. The City Council authorizes the use of Economic Development Authority Special Revenue
Fund 240 to assist this redevelopment project in an amount not to exceed $46,800.00.
6. The City Council approves the Business Subsidy Agreement subject to review by the City
Attorney.
7. The Mayor and City Manager are hereby authorized to execute on behalf of the City the
Business Subsidy Agreement and any other related documents requiring execution by the
City.
PASSED AND ADOPTED THIS 11th DAY OF DECEMBER 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
BUSINESS SUBSIDY AGREEMENT
This Business Subsidy Agreement (“Agreement”) is entered into this ___ day of
________, 201__, by and between the City of Prior Lake, a Minnesota municipal corporation
and the Prior Lake Economic Development Authority, an entity formed pursuant to Minn. Stat.
Chap. 469 (collectively the “City”) and PLate on Main, LLC, a Minnesota limited liability
company (“PLate”).
Recitals
WHEREAS, Minn. Stat. 116J.993 – 116J.995 (“Business Subsidy Act”) authorizes the
City to grant business subsidies, such as tax increment financing, tax abatement, and other
business subsidies for private development projects, in order to achieve a public purpose; and
WHEREAS, in order to grant a business subsidy, the City must adopt a business subsidy
policy in compliance with Minn. Stat. 116J.994, Subd. 2 to establish guidelines and criteria
regarding the granting of business subsidies; and
WHEREAS, on August 26, 2013 the City adopted an Amended Business Subsidy Policy
in compliance with Minn. Stat. 116J.994, Subd. 2; and
WHEREAS, on August 26, 2013 the City adopted a Local Business Incentives Policy
establishing guidelines and criteria regarding the use of local business incentives that are not
subject to all of the requirements and limitations set forth by Minn. Stat. 116J.993-116J.995; and
WHEREAS, PLate has applied for a business subsidy under the City’s Local Business
Incentives Policy to redevelop the property located at 16323 Main Avenue SE, Prior Lake, MN
55372, legally described as Lot 2, Block 1, Cates Addition (“Project Site”), and to construct on
the Project Site an approximately 3,500 square foot building from which to operate a restaurant
(“Project”); and
WHEREAS, the Project will achieve several public purpose objectives, including
specifically, to enhance and diversify the City’s tax base, to provide employment opportunities in
the City, to help provide access to services for residents of the City, to achieve development on a
site that may not be redeveloped without business subsidies assistance; to remove blight and/or
encourage development of a commercial area in the City that results in higher quality
development and private investment; and to offset increased costs of development of a specific
property when the unique physical characteristics of the site may otherwise preclude private
investment; and
WHEREAS, the Project is consistent with the City 2030 Comprehensive Plan and Vision
Statement; and
WHEREAS, the requested business subsidy was considered by the Prior Lake City
Council on December 11, 2017; and
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WHEREAS, the City Council approved a business subsidy for the Project in the form of
an Economic Development Authority forgivable loan (“Business Subsidy”).
NOW THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the receipt and sufficiency of which are acknowledged, the parties agree as follows:
1. Recitals. The recitals set forth above are incorporated herein and made part of this
Agreement.
2. Definitions. The definitions set forth in Minn. Stat. 116J.993 are incorporated herein and
made part of this Agreement. The “Benefit Date” is defined by Minn. Stat. 116J.993, Subd.
2 as the “date that the recipient receives the business subsidy” and for purposes of this
Agreement shall mean the date that PLate receives the first payment of any portion of the
Business Subsidy.
3. Description of the Business Subsidy. The City hereby grants to PLate a Business Subsidy
in the form of a forgivable loan in the amount not to exceed $116,800 to assist with costs
(“Eligible Project Costs”) related to, i) demolition of single-family residential home; ii) soil
corrections; iii) storefront façade improvements; iv) sidewalk and curb concrete work; v)
street lighting; and vi) utility connection and relocation (“Eligible Project Work”).
4. Loan Payments. The City may issue the loan funds to PLate in multiple payments, but the
City shall not issue any loan funds under this Agreement until all of the following conditions
have been met:
➢ This Agreement has been approved by the City Council of Prior Lake and fully
executed by both parties.
➢ The Eligible Project work for which payment is being requested has been performed
to the reasonable satisfaction of the City. The City shall inspect the Eligible Project
Work for which payment is being requested and shall not issue any loan funds if work
has not been performed to the reasonable satisfaction of the City.
➢ PLate has submitted invoices and proof of payment for the Eligible Project Work for
which payment is being requested.
➢ William Peterson has executed and provided to the City the Personal Guaranty
attached hereto as Attachment 1.
5. Personal Guaranty. The repayment of the Business Subsidy shall be secured by William
Peterson’s execution and delivery to the City of a personal guaranty (“Personal Guaranty”) in
the form attached hereto as Attachment 1.
6. Goals. The City shall not forgive the loan as set forth in paragraph 7 below unless PLate has
met the following goals (“Goals”):
a. Completion of the Project to the City’s reasonable satisfaction within one year of the
Benefit Date.
b. Operation of a restaurant on the Project Site for two years from the Benefit Date.
7. Forgiveness or Repayment. For two years from the Benefit Date, the repayment of the
Business Subsidy shall be deferred and no interest shall accrue, provided PLate is not in
3
breach of this Agreement. At the end of two years the Business Subsidy shall be forgiven or
repaid as follows:
a. Forgiveness. If, at the end of the two-year period, PLate has met the Goals, the
Business Subsidy shall be forgiven in full.
b. Repayment. If, at the end of the two-year period, PLate has not met the Goals the
Business Subsidy shall be immediately due and payable and PLate shall repay the
Business Subsidy beginning on the first day of the first month following the
expiration of the two-year period. Repayment shall occur by monthly payments
amortized over a three-year period with interest accruing at the Implicit Price Deflator
rate as defined in Minn. Stat. 116J.994, Subd. 6. If PLate fails to repay the Business
Subsidy as provided herein, the City may proceed against the Personal Guaranty.
8. Use of Business Subsidy. The Business Subsidy shall be used for reimbursement of site
development costs associated with i) demolition of single-family residential home; ii) soil
corrections; iii) storefront façade improvements; iv) sidewalk and curb concrete work; v)
street lighting; and vi) utility connections and relocation on and around the Project Site to
allow for construction of a restaurant building of approximately 3,500 square feet.
9. Statement of Need for Business Subsidy. PLate represents that it is eligible to receive the
Business Subsidy pursuant to Minn. Stat. § 116J.994. PLate asserts that wi thout the Business
Subsidy, PLate would not proceed with the Project as proposed.
10. Public Purpose Statement. The City and PLate agree that the public purposes served by
this Business Subsidy are as follows: to enhance and diversify the City’s tax base, to provide
employment opportunities in the City, to help provide access to services for residents of the
City, to achieve development on a site that may not be redeveloped without business
subsidies assistance; to remove blight and/or encourage development of a commercial area in
the City that results in higher quality development and private investment; and to offset
increased costs of development of a specific property when the unique physical
characteristics of the site may otherwise preclude private investment.
11. Wage and Job Goals of the Project. At the December 11, 2017 City Council meeting, the
City determined that the creation and retention of jobs is not a goal of this Business Subsidy,
therefore the wage and job goals are set to zero pursuant to Minn. Stat. § 116J.994, Subd. 4.
12. Name and Address of Parent Corporation (if applicable). PLate does not have a parent
corporation.
13. Notice. Required notices to PLate shall be in writing, and shall be either hand-delivered to
PLate, its employees or agents, or mailed to PLate by certified mail at the following address:
PLate on Main
350 W. Burnsville Parkway, Ste. 150
Burnsville, MN 55337-2791
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Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City
by certified mail at the following address:
City of Prior Lake
Attn: City Manager
4646 Dakota Street SE
Prior Lake, MN 55372
Notices shall be deemed effective on the date of receipt. Any party may change its address
for the service of notice by giving written notice of such change to the other party, in any
manner above specified, 10 days prior to the effective date of such change.
14. Other Business Subsidies Received for this Project. Nothing herein shall preclude PLate
from receiving additional financial assistance for the Project.
15. Indemnity. PLate will defend and indemnify City, its officers, agents, and employees and
hold them harmless from and against all judgments, claims, damages, costs and expenses,
including a reasonable amount as and for its attorney’s fees paid, incurred or for which it
may be liable resulting from any uncured breach of this Agreement by PLate or its
employees, or any negligent or intentional act or omission performed, taken or not performed
or taken by PLate or its employees, relative to this Agreement.
16. Successors and Assigns. This Agreement and all terms, conditions and obligations
contained herein shall be binding upon and inure to the benefit of the City and PLate and
their respective successors and assigns. Neither party shall assign this Agreement, nor any
interest arising herein, without the written consent of the other party.
17. Audit Disclosure. Pursuant to Minn. Stat. 16C.05, Subd. 5, the books, records, documents
and accounting procedures and practices of PLate, that are relevant to this Agreement, are
subject to examination by the City and either the Legislative Auditor or the State Auditor for
a period of six (6) years after the effective date of this Agreement.
18. Data Practices. This Agreement is subject to the Minnesota Government Data Practice Act
pursuant to Minn. Stat. 13.05, Subd. 11. If PLate performs any functions of the City, all of
the data created, collected, received, stored, used, maintained, or disseminated by PLate in
performing those functions is subject to the requirements of Minn. Stat. Chap 13 and PLate
must comply with those requirements as if it were a government entity.
19. Conflicts. No salaried officer or employee of the City and no member of the Council, or
Commission, or Board of the City shall have a financial interest, direct or indirect, in this
Agreement. The violation of this provision renders the agreement void.
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20. Breach, Notice, and Remedies.
(a) Breach. If for any reason PLate violates any provision of this Agreement or fails to meet
any requirement of this Agreement, PLate shall be deemed to be in breach of this
Agreement.
(b) Notice. The City shall provide PLate written notice (“Notice”) of an alleged breach. The
Notice shall include a description of the nature of the breach, a description of the actions
or accomplishments which must occur to cure the breach, and a reasonable time to cure
the breach which will be at least 15 calendar days. Notices shall be sent in accordance
with paragraph 13.
(c) Remedies. If PLate fails to cure the breach within the time provided in the Notice, the
City may pursue any remedy at law or in equity, whether or not set forth in this
Agreement, which remedies include, but are not limited to, the following:
I. The City may demand repayment of all or a portion of the Business Subsidy and
declare all such amounts immediately due and payable.
II. The City may take action to collect against the Personal Guaranty.
III. The parties hereto agree that, in the event of a default by PLate in the performance
of the obligations set forth in this Agreement, money damages shall not provide an
adequate remedy. As a result, the parties understand and agree that, in the event of
a default by PLate in the performance of its obligations under this Agreement, the
City shall be entitled to also seek specific performance by PLate of this Agreement.
21. Enforcement. PLate shall reimburse the City for all costs and expenses, including without
limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by
the City during the term of this Agreement or thereafter of any of the rights or remedies of
the City under this Agreement.
22. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota.
23. Severability. The provisions of this Agreement are severable. If any portion hereof is, for
any reason, held by a court of competent jurisdiction to be contrary to law, such decision
shall not affect the remaining provisions of this Agreement.
24. Waiver. No action nor failure to act by the City shall constitute a waiver of any right or duty
afforded it under the Agreement, nor shall any such action or failure to act constitute an
approval of or acquiescence in any breach thereunder, except as may be specifically agreed
in writing.
25. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement
supersedes all oral agreements and negotiations between the parties relating to the subject
matter hereof as well as any previous agreements presently in effect between the parties
6
relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of
the provisions of this Agreement shall be valid only when expressed in writing and duly
signed by the parties, unless otherwise provided herein.
26. Not in Contravention of Law . It is intended that nothing contained herein be in
contravention of law. In the event that any provision herein conflicts with Minn. Stat. §§
469.1812 to 469.1815, or 116J.994, the statutory provisions shall prevail. This business
subsidy agreement shall be interpreted and given effect as if the terms or prohibitions of
such statutory sections have been included herein.
27. Limitation on City's Liability. It is understood and agreed by PLate that nothing in this
Agreement or in any other document executed by the City in connection with the granting of
the Business Subsidy, or any obligation imposed upon the City or breach thereof, shall give
rise to a pecuniary liability of the City or a charge against its general credit or taxing powers
or shall obligate the City financially in any way except with respect to the application of
taxes to be abated pursuant to this Agreement. No failure of the City to comply with any
term, condition, covenant or agreement herein shall subject the City to liability for any claim
for damages, costs or other financial or pecuniary charges except to the extent that the same
can be paid or recovered from the taxes abated. No execution on any claim, demand, cause of
action or judgement shall be levied upon or collected from the general credit, general funds
or taxing powers of the City. In executing this Agreement, the City has not obligated itself
except with respect to the abatement of taxes as provided. The obligations arising from this
Agreement do not now and shall never constitute an indebtedness or a loan of the credit of
the City or the City's general taxing powers within the meaning of any constitutional or
statutory provision whatsoever. It is further understood that the City shall not be liable for
any expenses related hereto.
28. Attachments. The following documents attached to this Agreement are hereby incorporated
by reference and made a part hereof:
Attachment 1: Personal Guaranty
IN WITNESS WHEREOF this Agreement has been duly executed and delivered by the
parties hereto as of the date above written.
(Remainder of page intentionally blank)
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CITY OF PRIOR LAKE, MINNESOTA
Frank Boyles
Its: City Manager
Kirt Briggs
Its: Mayor
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ___________,
201__, by Frank Boyles and Kirt Briggs, the City Manager and Mayor of the City of Prior Lake,
Minnesota, a Minnesota public body, on behalf of said public body.
__________________________________
Notary Public
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CITY OF PRIOR LAKE ECONOMIC
DEVELOPMENT AUTHORITY
Frank Boyles
Its: Executive Director
David Chromy
Its: President
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ___________,
201__, by Frank Boyles and David Chromy, the Executive Director and President of the City of
Prior Lake Economic Development Authority, on behalf of said public body.
__________________________________
Notary Public
9
PLate on Main, LLC
William Peterson
Its: Chief Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ___________,
201__, by William Peterson, the Chief Manager of PLate on Main, LLC, a Minnesota limited
liability company, on behalf of said company.
__________________________________
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Hoff Barry, P.A.
775 Prairie Center Drive
Suite 160
Eden Prairie, MN 55344
Attachment 1
ATTACHMENT 1
PERSONAL GUARANTY
In consideration of and in order to induce the City of Prior Lake and the Economic
Development Authority of the City of Prior Lake, a Minnesot a Municipal Corporation (collectively
the “City”) to enter into a Business Subsidy Agreement (“Agreement”) for issuance of a loan under
the City of Prior Lake Local Business Subsidy Policy to PLate on Main, LLC, a Minnesota limited
liability company (“PLate”), the undersigned, William C. Peterson, (“Guarantor”) hereby:
1. Unconditionally and absolutely guaranties to City the full and prompt payment of the
loan due by PLate to City under the terms of the Agreement (the “Loan”).
2. Waives (i) presentment, demand, notice of nonpayment, protest and notice of protest
and dishonor on the Loan; (ii) notice of acceptance of this Guaranty by City; and (iii) notice of the
creation of the Loan by PLate.
3. Agrees that this Guaranty shall be construed as a continuing, absolute and
unconditional guaranty without regard to (i) the validity, regularity or enforceability of the Loan or
the disaffirmance thereof in any insolvency or bankruptcy proceeding relating to PLate, or (ii) any
event or any conduct or action of PLate or City or any other party which might otherwise constitute a
legal or equitable discharge of a surety to guarantor but for the provision.
4. Agrees that this Guaranty shall remain in full force and effect and be binding upon
Guarantor until the Loan is paid in full or fully forgiven at which time this Guaranty shall terminate.
5. Agrees that the City’s possession of this instrument of guaranty, executed by
Guarantor, shall be conclusive evidence of due execution and delivery hereof by Guarantor.
6. Agrees that this Guaranty shall be binding upon the legal representatives, successors
and assigns of Guarantor, and shall inure to the benefit of City and its successors, assigns and legal
representatives; that notwithstanding the foregoing Guarantor shall have no right to assign or
otherwise transfer his rights and Loan under this Guaranty to any third party without the prior written
consent of City; and that any such assignment or transfer shall not release or affect the liability of
Guarantor hereunder in any manner whatsoever.
7. Agrees that Guarantor may be joined in any action or proceeding commenced against
PLate in connection with or based upon the Loan and recovery may be had against Guarantor in any
such action or proceeding or in any independent action or proceeding against Guarantor should PLate
fail to duly and punctually pay any of the principal of the Loan without any requirement that City
first assert, prosecute or exhaust any remedy or claim against PLate.
8. Agrees that the liability of Guarantor and any other guarantor of the Loan shall be
joint and several.
Attachment 1
9. Agrees that City may have jurisdiction and venue any action regarding this Guaranty
in Scott County, Minnesota, whether or not such venue is or subsequently becomes inconvenient to
Guarantor.
Dated as of this _____ day of ________, 201__.
__________________________
William Peterson
General Location Map
16323 Main Avenue SE
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