07-23-2003 Council Agenda - Laserfiche WebLink

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1450998v8 notice, the EDA will promptly inspect the unit or units to determine if the unit or units are substantially complete. For purposes of Section 6.3 and this Section 6.7, the Developer is deemed to have substantially completed a unit if the Developer has constructed the unit in substantial conformity with the Construction Plans and the Developer has satisfied all of the requirements for the City's issuance of a Certificate of Occupancy for that unit, except for the installation of carpeting, appliances and light fixtures and except for the application of exterior finishes that cannot be completed due to winter conditions. If the EDA deteinnines the Developer has not substantially completed a unit, the EDA will, upon completion of the inspection, promptly deliver a written statement to the Developer indicating, in adequate detail, the reason or reasons why the unit is not substantially complete, and the Developer must promptly remedy such deficiencies. When the EDA determines a unit is substantially complete, the EDA will furnish to the Developer a Certificate of Completion and Release, certifying the completion of the unit and releasing the unit from the Right -of -Re -Entry described in Section 6.5, from the terms of the Assessment Agreement described in Section 7.1 and from the terms of this Agreement. The Developer must record the Certificate of Completion and Release in the proper County Land Records. The Developer may instruct the EDA to defer issuance of a Certificate of Completion and Release for a unit until the Developer's closing on the sale of that unit so that the Certificate of Completion and Release and the release of the Villas Mortgage described in Section 6.6 may be combined in a single document. 7. ASSESSMENT AGREEMENT. 7.1. Execution and Recording of Assessment Agreement . Before or contemporaneously with the EDA's conveyance of the Rutzik/CardinalNenetian Property to the Developer, the Developer and the EDA must execute and obtain the County Assessor's execution of an assessment agreement relating to the Development Property pursuant to the provisions of Minn. Stat. 469.177, Subd. 8 (the "Assessment Agreement "), establishing minimum market values to be used for calculation of real property taxes for the Development Property. The Assessment Agreement must establish minimum market values for the Development Property of: $2,152,320.00 as of January 2, 2004, $6,995,040.00 as of January 2, 2005, and $11,837,760.00 as of January 2, 2006 and as of each January 2 thereafter through and including January 2, 2022. The Assessment Agreement must provide for the adjustment of such minimum market values in the manner described in Section 7.2. The Assessment Agreement must be in the form of the pro forma Assessment Agreement attached as Exhibit B. Nothing in this Agreement or in the Assessment Agreement limits the County Assessor's discretion to establish a market value for the Development Property in excess of the minimum market value set forth in the Assessment Agreement or prohibits the Developer from seeking, through the exercise of legal or administrative remedies, a reduction of the market value the County Assessor assigns to the Development Property; provided, however, the Developer may not seek a reduction of the Development Property's market value below the minimum market value set froth in the Assessment Agreement so long as the Assessment Agreement remains in effect. The Assessment Agreement will remain in effect until the earlier of: i) December 31, 2022; ii) the date the EDA has released all of the Development Property from the Assessment Agreement pursuant to Section 7.2; or iii) the date the Tax Increment District expires or is otherwise terminated. The EDA and 0 -12-