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HomeMy WebLinkAboutRes 19-02 Mana Brewing BSA O� PRIU� ti U 4646 Dakota Street SE �rlNxEse �A Prior Lake, MN 55372 RESOLUTION 19 -02 EDA A RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT WITH MANA BREWING LLC TO ASSIST WITH PROPERTY DEVELOPMENT COSTS Motion By : Sheehan - Kerber Second By : Boucher- Hoese 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 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 , Maria Brewing LLC has applied for a business subsidy under the City's Local Business Incentives Policy to develop the property located in Prior Lake , MN 55372 , located in Section 02 , Township 114 , Range 022 , PID : 259021210 (" Project Site") , and to construct on the Project Site an approximately 7 , 000 square foot building from which to operate a brewery (" Project" ) ; and WHEREAS , there has been presented before the City of Prior Lake Economic Development Authority a Business Subsidy Agreement by and between the City of Prior Lake Economic Development Authority and Maria Brewing LLC setting forth the terms of the business subsidy ; and WHEREAS , On March 11 , 2019 , the City of Prior Lake Economic Development Authority approved a business subsidy for the Project in the form of an Economic Development Authority deferred forgivable loan . NOW THEREFORE , BE IT HEREBY RESOLVED BY THE CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY as follows : 1 . The recitals set forth above are incorporated herein . 2 . Based upon the information presented , the Economic Development Authority 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 developed without business subsidies assistance ; to 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 , b . the Project is consistent with the City 2030 Comprehensive Plan and 2040 Vision and Strategic Plan . 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 Economic Development Authority approves a business subsidy in the form of a deferred forgivable loan to Mana Brewing LLC as set forth in the Business Subsidy Agreement in an amount not to exceed $ 149 , 900 . 4 . The Economic Development Authority authorizes the use of Economic Development Authority Special Revenue Funds [ Fund 240] to assist this development project in an amount not to exceed $ 149 , 900 . 5 . The Economic Development Authority approves the Business Subsidy Agreement subject to review by the City Attorney . 6 , The 2019 budget for Fund 240 will be amended to reflect this expenditure . 7 . The Economic Development Authority President and Executive Director are hereby authorized to execute on behalf of the EDA the Business Subsidy Agreement and any other related documents requiring execution by the EDA . PASSED AND ADOPTED THIS 11th DAY OF MARCH 2019 . VOTE Chromy Braid Sheehan- Briggs Boucher- Kerber Hoese Aye X X X X a Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Michael Plante , Executive Director