HomeMy WebLinkAboutRes 18-02 Approving Financial Assistance from the EDA Special Revenue Fund RESOLUTION 18 -02 EDA
A RESOLUTION APPROVING FINANCIAL ASSISTANCE
FROM THE EDA SPECIAL REVENUE FUND
Motion By : Briggs Second By : Sheehan - Kerber
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 , to achieve a public purpose ; 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 , SR Property Development LLC , has applied for a business subsidy under the City' s
Local Business Incentives Policy to develop the property located at 17098 Adelmann
Street SE , Prior Lake , MN 55372 , legally described as Lot 1 , Block 1 , Deerfield
Industrial Park 5th Addition ( PID 254440010) (" Project Site") , and to construct on the
Project Site an approximate 11 , 200 square foot building (" Project") ; and
WHEREAS , on September 10 , 2018 , the City of Prior Lake Economic Development Authority ( EDA)
approved a resolution approving financial assistance from the EDA Special Revenue
Fund for the actual amount of soil correction costs , not to exceed $37 , 131 .
NOW THEREFORE , BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY
OF PRIOR LAKE , MINNESOTA as follows :
1 . The recitals set forth above are incorporated herein .
2 . Based upon the information presented , the EDA makes the following findings :
a . the Project will achieve several public purpose objectives , including specifically , to enhance
and diversify the City of Prior Lake ' s tax base ; to achieve development on a site that may not
be redeveloped without business subsidies assistance ; and 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 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 approves a business subsidy in the
form of a deferred loan to SR Property Development LLC as set forth in the Local Business Subsidy
Agreement in an amount not to exceed $ 116 , 800 . 00 .
4 . The City Council authorizes the use of Economic Development Authority Reserve Funds to assist this t
redevelopment project in an amount not to exceed $37 , 131 , with 50$ of costs to be provided at the
completion of soil correction work and the remaining 50 % of costs to be provided upon issuance of a
certificate of occupancy at 17098 Adelmann Street SE if certificate of occupancy is issued on or
before December 31 , 2019 .
5 . The EDA approves the Local Business Subsidy Agreement subject to review by the City Attorney .
6 . The EDA Executive Director is hereby authorized to execute on behalf of the City the Local Business
Subsidy Agreement and any other related documents requiring execution by the EDA .
PASSED AND ADOPTED THIS 10th DAY OF SEPTEMBER 2018 ,
VOTE Chromy Braid Sheehan- Briggs Boucher-
Kerber Hoese
Aye x ❑ x ❑
Nay ❑ ❑ ❑ ❑ ❑
Absent ❑ x ❑ ❑ Ix
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Abstain ❑ ❑ ❑ ❑ ❑
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IA
Fra k ie E tE� e tive Director
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