02-14-2001 Council Agenda - Laserfiche WebLink

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an amount equal to the sum of 95% of the Tax Increments (hereinafter defined) received by the City during the six month period preceding such Payment Date. All payments made by the City under this Note shall first be applied to accrued interest and then to principal. In the event the full amount of this Note and interest thereon has not been paid in full to Developer on or before the maturity date hereof (i.e., August 1, 2009), this Note shall be extended for such period of time as is reasonably determined by the City to enable the Registered Owner to be paid the full amount hereof, provided, however, that the maturity date of this Note shall not be extended if: (a) Developer or the Registered Owner is in default under any term or provision of this Note or the Development Agreement, or (b) the reason that the Registered Owner has not been paid the full amount hereof is due to a reduction in the class rate used in calculating the real estate taxes payable with respect to the Development Property (as defined in the Development Agreement). Notwithstanding anything herein to the contrary, in no event shall the maturity date of this Note be extended beyond the termination date of the Tax Increment District (as hereinafter defined). The Payment Amounts due hereon shall be payable solely from tax increments (the "Tax Increments ") from the City's Tax Increment Financing District No. 3 -2 (the "Tax Increment District ") within its Municipal Development District No. 3 which are paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from time to time (the "Tax Increment Act "). This Note shall terminate and be of no further force and effect following the last Payment Date defined above, on any date upon which the City shall have terminated the Development Agreement under Section 4.2(b) thereof or the Developer shall have terminated the Development Agreement under Article V thereof, or on the date that all principal interest payable hereunder shall have been paid in full, whichever occurs earliest. The City makes no representation or covenant, express or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 3.2 thereof, for a fuller statement of 1206506v1 Page 32