HomeMy WebLinkAbout17-210 PLate Business Subsidy Agreement
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-210
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: Braid Second By: Burkart
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