2000-11-08 CC - Laserfiche WebLink

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ABATEMENT BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT is made this _ day of , 2000, by and between CITY OF CENTERVILLE, MINNESOTA, a Minnesota municipal corporation (the "City") and NORTHERN FOREST PRODUCTS, L.L.c., a Minnesota limited liability company (the "Developer"). RECITALS A. The City and Developer previously entered into a Contract for Private Development dated October 25, 1995 (the "TIF Contract"), under which Developer constructed an approximately 14,500 square foot manufacturing facility (referred to as the "Minimum Improvements") on property owned by the Developer and defined as Lot 5, Block 1, Industrial Park, according to the recorded plat thereof (the "Property"). B. Under the TIF Contract, the City provided certain tax increment financing assistance to the Developer through issuance of the City's $114,051.19 Tax Increment revenue Note, Series 1995B ("TIF Note"). The TIF Note is payable solely from and to the extent of tax increments from Tax Increment Financing District No. 1-4 (the "TIF District"). C. The Developer has proposed to construct an approximately 25,000 square foot addition to the existing manufacturing facility on the Property (referred to as the "Additional Improvements"), and in connection with that effort has requested that the City grant an abatement of property taxes under Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Abatement Act"). D. After duly notice public hearing, the City Council approved an abatement of the City's share of taxes on the Additional Improvements, as described in Resolution No. approved November 8,2000 (the "Abatement Resolution"). E. The proposed abatement represents a "business subsidy" under Minnesota Statutes, Section 116J.993 to 116J.995 (the "Business Subsidy Act"). This Agreement constitutes the "business subsidy agreement" between the Developer and the City for the purposes of the Business Subsidy Act. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Additional Improvements. The Developer must substantially complete construction of the Additional Improvements on the Property by December 31, 2001. Construction will be considered substantially complete upon issuance of a certificate of occupancy by the City. 2. Abatement. (a) The City will pay the abatement payments to the Developer in accordance with all the terms and conditions of the Abatement Resolution. The Abatement (as defined in the Abatement Resolution) will be paid for no more than five years, beginning in the first year after termination of the TIF District, and in the aggregate will not exceed $123,000. The Abatement will be derived solely from the City's share of taxes on the Additional Improvements, as more specifically defined in the Abatement Resolution.