07-23-2003 Council Agenda - Laserfiche WebLink

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EXHIBIT B Pro Forma Assessment Agreement THIS AGREEMENT, dated as of this day of , 20 , is between the Economic Development Authority of the City of Little Canada (the "EDA ") and The Villas at Little Canada LLC, a Minnesota limited liability company (the "Developer "). WITNESSETH WHEREAS, on or before the date hereof the EDA and Developer have entered into a Development Agreement dated as of , 200_ (the "Agreement ") regarding certain real property located in the City of Little Canada and legally described on the attached Exhibit A (the "Development Property "). WHEREAS, it is contemplated that pursuant to said Agreement, the Developer will purchase the Development Property from the EDA and undertake the construction of approximately 44 residential townhomes on the Development Property in accordance with plans and specifications approved by the EDA (the "Townhomes "). The term "Development Property, " as used in this Agreement, includes all improvements now or hereafter located on the Development Property, including, but not limited to, the Townhomes. WHEREAS, the EDA and Developer desire to establish a minimum market value for the Development Property and the improvements constructed or to be constructed thereon, pursuant to Minnesota Statutes, Section 469.177. WHEREAS, the EDA and the Assessor have reviewed plans and specifications for the Townhomes. NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. As of January 2, 2004, the minimum market value which shall be assessed for the Development Property shall not be less than $2,152,320.00. As of January 2, 2005, the minimum market value, which shall be assessed for the Development Property shall not be less than $6,995,040.00. As of January 2, 2006 and as of each January 2 thereafter, through and including January 2, 2022, the minimum market value which shall be assessed for the Development Property shall not be less than $11,837,760.00. 2. Notwithstanding anything else in this Assessment Agreement, the EDA has agreed to release portions of the Development Property from the terns of this Assessment Agreement in connection with the Developer's sale of individual residential units and to provide for corresponding reductions in the minimum market value which shall be assessed for the portion of the Development Property which has not been released. Upon the EDA's execution and delivery of a Certificate of Completion and Release for a unit, as contemplated in Section 6.7 of the Development Agreement, the minimum market value for the portion of Development Property that remains subject to this Assessment Agreement is automatically reduced to an 145099898 B -1 - 3 0 -