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PAYMENT IN LIEU OF TAXES AGREEMENT THIS AGREEMENT, made as of the day of May, 2012, among the City of Little Canada, Minnesota (the "City "), a municipal corporation organized and existing under the laws of the State of Minnesota, and International Union of Painters and Allied Trades Council 82 Building Corporation, Inc., a Minnesota corporation (the "Developer "). WITNESSETH: WHEREAS, the City and Developer have heretofore entered into a Development Agreement dated as of August 13, 2003 (the "Development Agreement ") pursuant to which the City agreed to provide tax increment financing assistance to the Developer in connection with certain costs of a development within Tax Increment Financing District No. 2 -2; and WHEREAS, in consideration of the tax increment financing assistance the Developer agreed that, among other things, it would not take any action, or suffer any action to occur, which would render any portion of the Development Property (as such term is defined in the Development Agreement) to be exempt from real estate taxes; and WHEREAS, the Developer can satisfy the outstanding obligations of Tax Increment Financing assistance provided as part of the Development Agreement by making a payment to the City by May 31, 2012 in the amount of $105,390.38 less the tax increment shortfall guarantee cash deposit plus accrued interest ($57,993.18) to repay the interfund loan made by the City for the assistance provided in the construction of the building located on the Development Property pursuant to Section 6.1 of the Development Agreement; and WHEREAS, in 2008, a change occurred in Minnesota Statutes, (specifically Chapter 272.02, Subdivision 86) that allows the Developer seek an exemption from real estate taxes for the Premises and the Facility associated apprenticeship training facilities; and WHEREAS, Developer is eligible for exempt status on the Development Property resulting in a 75% loss in current estimated market value thereby reducing the economic gain to the City, Independent School District, Ramsey County, and other miscellaneous taxing jurisdictions; and WHEREAS, Developer is under no obligation to provide a Payment in Lieu of Taxes payment to any governmental jurisdiction, but does recognize the financial impact tax exempt status would have on the City's ability to provide needed services to the community. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 4626500v)