07-23-2003 Council Agenda - Laserfiche WebLink

Home Browse Search

including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (b) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings with respect to the Development Property; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (c) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.181, or any other State or federal law, of the ad valorem property taxation of the Development Property between the date of execution of this Agreement and the Teiuiination Date. Section 6.3 Business Subsidies Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidies Act "), the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is the Reimbursement Amount which is the amount of the cost of the Site Improvements reimbursed by the City, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The Tax Increment District is a "renewal and renovation" district and the public purpose of the Business Subsidy is to develop new jobs within the City and encourage the acquisition of the Development Property and the installation of the Site Improvements and to develop commercial facilities in the City. The Developer agrees that it will meet the following goals (the "Goals "): It will create at least full -time equivalent jobs in connection with the development of the Development Property at a wage of at least $ per hour within two years from the "Benefit Date ", which is the date the Project is completed. (2) If the Goals are not met, the Developer agrees to repay all or a part of the Business Subsidy to the City, plus interest ( "Interest ") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number ofjobs in the Goals which were not created at the wage level set forth above and the denominator of which is (i.e. number ofjobs set forth in the Goals). (3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the Goals are met, or the Business Subsidy is repaid, whichever occurs earlier, (ii) include in the report the information required in Subdivision 7 of the Jobs Act on forms developed by the Minnesota Department of Trade and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2004, and within 30 days after the deadline for meeting the Goals. The 549292v1 - 2 1 -