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ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 21, 2016 3 Councilmember Holden asked when the abatement begins. Community Development Director Hutmacher stated the first abatement payment was scheduled for August 1, 2020. Payment does not begin until that date as the full tax value as determined in 2019 would not be reflected until release of the 2020 payable tax information. Councilmember Holden asked if there would be an issue regarding the City exercising its option to request reimbursement should Land O' Lakes relocate or sell the property. Stacie Kvilvang stated the City Council could ask to be reimbursed for monies spent but that other options included extending the abatement if the Council felt that value has been received. The City Council could also choose to convey the abatement to the next owner. Councilmember Holden requested clarification regarding the land use plan and the abatement agreement. She asked what would happen if a variance was requested by Land O' Lakes that did not receive the City's approval. Community Development Director Hutmacher stated that approval of the abatement agreement would have no effect on the land approval process for other work. Councilmember Holden asked if additional employees over and above 200 as referenced earlier would be added due to the increased square footage. Marcia Droege indicated that over the course of the next 10 years, Land O' Lakes expected their growth to average between 3% and 5% each year. She said 200 employees was the baseline required to apply for the job creation fund. She also said that through the year 2024, Land O' Lakes expected their workforce to increase from approximately 1,700 to 2,400 employees. She stated under the job creation fund, Land O' Lakes had 2 years to add 200 positions. If they did not meet this requirement, they would receive a prorated share of the funds. Mayor Grant asked if the City Attorney had reviewed the agreement and had any comments from a legal aspect that the Council should be aware of. City Attorney Joel Jamnik stated that while it is far from being a standard agreement, there was nothing controversial or unusual in the agreement. Councilmember Holden asked if the abatement would be affected if there were to be a crash in the market. Stacie Kvilvang stated the 15-year and$650,000 maximum abatement would still apply. Councilmember McClung commented that while he was generally opposed to tax abatements in any form,he supported this action due to Land O' Lakes' longevity in the community. Councilmember Holmes stated that while it was a somewhat difficult decision for her, she supported the abatement as Land O' Lakes was a good civic partner and she was happy they would remain in Arden Hills.