04-12-2006 Council Agenda - Laserfiche WebLink

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AGREEMENT BY AND BETWEEN CITY OF LITTLE CANADA AND RAB, L.L.C. WHEREAS, the City of Little Canada, (hereinafter "City ") a municipal corporation and political subdivision organized and existing under the Constitution and the laws of the State of Minnesota; and RAB, L.L.C., a Minnesota limited liability company (hereinafter "Developer ") entered into a Development Agreement dated July 21, 1999 and an Amendment to Development Agreement dated January 19, 2005, and WHEREAS, Developer has completed construction of Phase I and Phase II minimum improvements, and WHEREAS, Developer desires to refinance Phase I and Phase II at a higher loan amount than exists presently for the sum total of Phase I and Phase II, and WHEREAS, Developer is liable for Tax Increment Shortfalls as defined by Article VII, Section 7.1 of the Amended Development Agreement; NOW THEREFORE, in consideration of the premises and mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Developer shall pay to City the sum of Two I- Iundred Thousand Dollars and no /100 ($200,000.00) at the closing of the refinancing of Phases I and II expected to occur on or about March 24, 2006 as a discounted payoff of all projected, future tax increment shortfalls for the years 2006 through 2017. 2. City will release Developer and Richard A. Biagini from the provisions of Article VII, Section 7.1 of the Amended Development Agreement. 3. City shall release and return the Letter of Credit required by Article VII, Section 7.1.(e). 4. City shall release Developer from the remaining terms and conditions of the Development Agreement and the Amended Development Agreement with the exception of the requirements of Article Vi relating to the Assessment Agreements creating minimum assessed values for the Development Property, payment of Real Property Taxes by the Developer, and the remedies available to the City under the Development Agreement and Amended Development Agreement for the occurrence of an Event of Default thereof. The City's release is also conditioned on the Developer's completion of the following: