04-26-2000 Council Agenda - Laserfiche WebLink

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ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1. Development Property. The costs of the Development Property shall be paid by the Developer. The City shall reimburse the Developer for $174,680 of the cost of the Development Property and City costs of $15,000 for a total of $189,680 (the "Reimbursement Amount ") as further provided in Section 3.2 hereof. Section 3.2. Reimbursement: Tax Increment Revenue Note. The City shall reimburse for the costs identified in Section 3.1 through the issuance of the City's Tax Increment Revenue Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (1) The Note shall be in the principal amount of the Reimbursement Amount and shall be dated, issued and delivered by the City upon the certification of the Developer that the acquisition of the Development Property is complete and the delivery to the City of evidence satisfactory thereto of the purchase price paid by the Developer to the previous property owner in the amount of the Reimbursement Amount. (2) The unpaid principal amount of the Note shall bear interest from the date of issuance of the Note, at 9.50% per annum or the rate of interest per annum equal to the announced "Reference Rate" of U.S. Bank National Association, Minneapolis, Minnesota, as such Reference Rate is announced and in effect on the date of issuance of the Note, plus 1.50 %, whichever is less. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. (3) The principal amount of the Note and the interest thereon shall be payable solely from the Tax Increments. (4) On each Note Payment Date and subject to the provisions of the Note, the City shall pay, against the principal and interest outstanding on the Note, 95% of any Tax Increments received by the City during the preceding 12 months. All such payments shall be applied first to accrued interest and then to reduce the principal of the Note. (5) The Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal and interest on the Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if 1160667.1 page 220