No Business Subsidy. The assistance provided by the City and the EDA to the Developer comprises loans and guarantees totaling an amount less than $75,000. Therefore, the assistance for the Project does not constitute a “business subsidy” and the provisions of Minnesota Statutes, Section 116J.993 through 116J.995 do not apply.
No Business Subsidy. The parties agree that the Grant is not a business subsidy as defined in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “Business Subsidy Act”), because the assistance is in an amount less than $150,000.
No Business Subsidy. The parties agree that the Loan is not a business subsidy as defined in Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “Business Subsidy Act”), because the assistance is a loan in the amount of less than $75,000.
No Business Subsidy. Minnesota Statutes, Section 116J.993, subdivision 3(17) provides an exception from the Business Subsidy Act for redevelopment when the recipient’s investment in the purchase of the site and in site preparation is seventy percent (70%) or more of the assessor’s current year’s estimated market value. In order to use this exception, the Master Developer warrants and represents that its investment in the purchase of the Redevelopment Property and the site preparation on such Redevelopment Property (net of any portion of such costs to be reimbursed with tax increment or any other subsidies provided by the City or Authority) will equal at least seventy percent (70%) of the County assessor’s estimated market value for the Redevelopment Property for the 2018 assessment year, calculated as follows: Development property cost$0.00 Plus Estimated cost of site preparation$35,072,262.00 Equals land cost and site preparation$35,072,262.00 2018 Assessor’s Estimated Fair Market Value of Redevelopment Property$15,194,590.00 $35,072,262.00 (acquisition and site preparation cost) less $23,336,500 (amount of financial assistance provided by City for acquisition and site preparation), equals $11,735,762 which is 77% of $15,194,590 (assessor’s current estimated fair market value) Therefore, the Master Developer is not required to comply with the requirements of the Business Subsidy Act.
No Business Subsidy. This Agreement does not constitute a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995 by reason of the exception for assistance for housing.
No Business Subsidy. Minnesota Statutes, Section 116J.993, subdivision 3(17) provides an exception from the Business Subsidy Act for redevelopment when the recipient’s investment in the purchase of the site and in site preparation is seventy percent (70%) or more of the assessor’s current year’s estimated market value. In order to use this exception, the Developer warrants and represents that its investment in the purchase of the Development Property and the site preparation on such Development Property (net of any portion of such costs to be reimbursed with tax increment or any other subsidies provided by the City or Authority) will equal at least seventy percent (70%) of the County assessor’s estimated market value for the Development Property for the 2022 assessment year, calculated as follows: Cost of acquisition of Development Property $400,000 Plus Estimated cost of site preparation $1,474,800 Equals site cost and site preparation $1,874,800 2022 Assessor’s Estimated Fair Market Value of Development Property $365,900 The cost of acquisition of the site and site preparation of $1,874,800, less the amount of financial assistance provided by HRA for acquisition and site preparation of $1,474,800, equals $400,000, which is approximately 109.32% of the County assessor’s current estimated fair market value of $365,900. Therefore, the Developer is not required to comply with the requirements of the Business Subsidy Act.
No Business Subsidy. The EDA and Developer are entering into this Agreement in connection with the redevelopment of the Development Property, including the demolition of structurally substandard buildings on the Development Property. The Developer represents that its investment in the purchase price of the Development Property and demolition and other site preparation costs on the Development Property is at least $13,736,222 (net of the amount provided under this Agreement to reimburse such costs). Since the total of these costs is more than 70% of $4,623,174 (the assessor’s current year’s estimated market value), the assistance provided pursuant hereto is not a “business subsidy” because of the exception set forth in Minnesota Statutes, Section 116J.993, Subdivision 3(17) for the redevelopment of property.
