08-13-2003 Council Agenda - Laserfiche WebLink

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ARTICLE VI ASSESSMENT AGREEMENT AND OTHER COVENANTS Section 6.1 Execution of Assessment Agreements. The Developer and the City shall execute an Assessment Agreement relating to the Development Property pursuant to the provisions of Minnesota Statutes, Section 469.177, Subdivision 8, specifying the Assessor's Minimum Market Value for the Development Property for calculation of real property taxes. Specifically, the Developer shall agree to a market value for the Development Property and the Minimum Improvements in an amount of $4,000,000 as of January 2, 2004 (such minimum market value is herein referred to as the "Assessor's Minimum Market Value "). Nothing in the Assessment Agreement or this Agreement limits the discretion of the County Assessor to assign a market value to the property in excess of such Assessor's Minimum Market Value nor prohibits the Developer from seeking, through the exercise of legal or administrative remedies, a reduction in such market value for property tax purposes; provided however, the Developer shall not seek a reduction of such market value below the Assessor's Minimum Market Value for any year so long as the Assessment Agreement remains in effect for that year. The Assessment Agreement and this Agreement shall remain in effect until the earlier of (i) December 31, 2019, (ii) the date the Interfund Loan is paid in full or (iii) the date on which the Tax Increment District expires or is otherwise terminated (the "Termination Date "). The Assessment Agreement relating to shall be certified by the County Assessor as provided in Minnesota Statutes, Section 469.177, Subdivision 8, upon a finding by the County Assessor that the Assessor's Minimum Market Value represents a reasonable estimate based upon the plans and specifications for the Minimum Improvements to be constructed on the Development Property and the market value previously assigned to the Development Property. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the Assessment Agreement relating to the Development Property shall be filed for record in the office of the county recorder or registrar of titles of Ramsey County, and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the Development Property, whether voluntary or involuntary, and such Assessment Agreement relating to the Development Property shall be binding and enforceable in its entirety against any such subsequent purchaser or encumbrancer, including the holder of any First Mortgage. Section 6.2 Real Property Taxes. The Developer shall prior to the Termination Date pay all real property taxes with respect to all parts of the Development Property acquired and owned by it payable pursuant to the provisions of the Assessment Agreement and any other statutory or contractual duty that shall accrue subsequent to the date of its acquisition of title to the Development Property (or part thereof) and until title to the property is vested in another person. 1549292v2 The Developer agrees that for tax assessments prior to the Termination Date: (a) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the ad valorem property taxation of real property contained on the Development Property deteuuined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Development Property, In -18-