City Council Resolution 2006-31CITY OF MONTICELLO
RESOLUTION NO. 2006 -31
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RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT
BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF MONTICELLO AND SL REAL ESTATE HOLDINGS, LLC
BE IT RESOL'JED By the City Council ( "Council ") of the City of Monticello ( "City ") as
follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of Monticello
( "Authority') currently administers Central Monticello Redevelopment Project No. 1 (the
"Project "); and the A• ority and City have created Tax Increment Financing District No. 1 -37 (the
"TIF District') within the Project, all pursuant to Minnesota Statutes, Sections 469.001 to 469.047
and Sections 469.174 to 469.179.
1.02. To facilitate redevelopment of certain property in the TIF District, the Authority
proposes to enter into a Purchase and Redevelopment Contract (the "Contracf') between the
Authority and SL Real Estate Holdings LLC (the "Redeveloper "), under which among other things
the Authority will convey certain property described as Lot 1, Block 1, Otter Creek Crossing 2nd
Addition (the "Redevelopment Property) to Redeveloper.
1.03. The City currently owns the Redevelopment Property and has previously authorized
the conveyance of that property to the Authority in order to promote the development of the Otter
Creek Crossing industrial park.
1.04. The assistance under the Contract constitutes a "business subsidy" exceeding
$100,000 within the meaning of Minnesota Statutes, Section 1161993 to I I6J.995 (the "Business
Subsidy Act ").
1.05. The "business subsidy agreement" as required under the Business' Subsidy Act is
included as one section of the Contract. The Authority duly noticed a public hearing regarding the
business subsidy agreement, held such a hearing on April 5, 2006, and adopted a resoiuiion
approving the business subsidy agreement on that date.
1.06. Under the Business Subsidy Act this Council is required to approve any business
subsidy agreement.
1.07. The Council finds that the execution of the Contract, including the business subsidy
agreement, by the Authority and performance of the Authority's obligations thereunder are in the
best interest of the City and its residents.
Section 2. Cily Agproval. • Further Proceedings
2.01. The Council approves the business subsidy agreement within the Contract as
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presented to the Council, subject to modifications that do not alter -the substance of the transaction
and that are approved by the Mayor and City Administrator, provided that execution of the
documents by the those officials shall be conclusive evidence of their approval.
2.02. City staff and officials are authorized to take all actions necessary. to assist the
Authority in performing its obligations under the business subsidy agreement and the Contract as a
whole, including without limitation execution of any deed or other documents necessary to convey
the Redevelopment Property from the City to Authority and from Authority to Redeveloper.
Approved by the City Council of the City of Monticello this 24th day of April, 2006.
Mayor
ATTEST:
City Administrator
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