07-09-2003 Council Agenda - Laserfiche WebLink

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1. Business Subsidy. Minnesota Statutes, Section 116J.993 through 116J.995 (the "Business Subsidy Law ") applies to this agreement. After a public hearing for which notice was published, the City of Little Canada and the Economic Development Authority of the City of Little Canada (the "EDA ") have adopted criteria for awarding business subsidies that comply with the Business Subsidy Law, and EDA has approved this agreement as a subsidy agreement under the Business Subsidy Law. 1539595v1 6/12/03 a. To satisfy the provisions of the Business Subsidy Law, Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to Developer under this agreement is $1,055,000 which represents the difference between the price EDA paid for the Development Property and the purchase prices established for the Development Property in the Purchase Agreements; EDA's cost of acquiring and holding the Development Property; and interest on the preceding amounts. Developer represents to EDA that the Business Subsidy is necessary because Developer's acquisition of the Development Property and construction of the Minimum Improvements would not be feasible for Developer to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to encourage the redevelopment of the Development Property. Developer agrees that if Developer exercises the Option it will meet the following goals (the "Goals "): it will create at least ten full -time jobs in connection with the development and subsequent operation of the Development Property at an hourly wage of at least $10 per hour within two years from the date Developer first acquires title to a portion of the Development Property. b. If Developer acquires title to any portion of the Development Property, but does not meet the Goals, Developer must repay all or a part of the Business Subsidy to EDA, plus interest ( "Interest ") set at the implicit price deflator defined in Minnesota Statute Section 275.70, subdivision 2, accruing from and after the date EDA conveys the Development Property to Developer. If Developer meets the Goals in part, Developer must repay a portion of the Business Subsidy, plus Interest, determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of job in the Goals which were not created at the wage level set forth above and the denominator of which is ten, i.e., the number of jobs set forth in the Goals. c. Developer agrees: (i) to report of the progress in achieving the Goals to EDA until the Goals are met or the Business Subsidy is paid, whichever occurs earlier; (ii) to include in the report the information Minn. Stat. § 116J.994, Subdivision 7 requires on the Minnesota Department of Trade and Economic Development's forms; and (iii) send completed reports to EDA. Developer agrees to file these reports no later than first March 1st following EDA's conveyance of the Development Property to Developer; on each March 1 thereafter until the Goals are met or the Business Subsidy is repaid. EDA agrees that if it does not receive the reports, it will mail Developer a warning. If Developer does not make the 3