11-13-2002 Council Agenda - Laserfiche WebLink

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469.177, Subd. Decembe 1I .. _ Mich the City is entitled to retain pursuant to the provisions-of &HWpleme } This Note terminates and is of no further force and effect upon the earlier of: full. 95-and (a) the date all principal and interest payable hereunder has been paid in the last Payment Date, as defined above; or (b)-the date the Development Agreement is terminated as the result of the foreclosure of a First Mortgage or pursuant to Section 9.3 of the Development Agreement; or (c) the date all principal and interest payable hereunder has been paid in fill. In addition, if the Developer defaults in the performance of its obligations under the Development Agreement, the GityEDA. may, immediately upon the occurrence of the Event of Default, suspend its performance of its obligations under this Note and may continue to withhold performance until the Event of Default is cured; provided, however, if the Event of Default is the Developer's breach of the covenantcovenants set forth in the first sentence of Section 7.2 of the Development Agreement, the CityEDA is permanently relieved of its obligation to make any payments under this Tax Increment Note which payments would otherwise have been funded by Available Tax Increments resulting from the payment of real estate taxes levied and assessed in the year or years during which the Developer is in breach of the covenantcovenants set forth in Section 7.2 of the Development Agreement. The CityEDA makes no representation or covenant, express or implied, that the Available Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. This Note is a special, limited revenue obligation and not a general obligation of the CityEDA and is payable by the CityEDA only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the EDA or the City of Little Canada, Minnesota, and neither the full faith and credit nor the taxing powers of the EDA or the City are pledged to the payment of the principal of this Note and no property or other asset of the EDA or the City, save and except the above referenced Available Tax Increments, is or shall be a source of payment of the Gi- tyEDA's obligations hereunder. This Note is issued by the CityEDA in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment Act. This Note may not be assigned without the prior written consent of the GityEDA. The CityEDA expressly consents to the Developer's assignment of this Note to Glaser Financial Group, Inc. in connection with the Developer's Grant of a First Mortgage to Glaser Financial I42saxevdoc Red (V8 to V7) D -2