01-28-1998 Additons - Laserfiche WebLink

Home Browse Search

PROPOSED CHANGES 5. Annual Payment. Beginning in the year in which the Project qualifies and is obligated to pay real estate taxes at the 4(d) class rate (taxes payable in 1999), the Partnership shall pay the City an annual fee equal to the actual difference in the City's portion of real estate taxes for the Project attributable to the current year's actual real estate taxes and the taxes that would have been due if the project had paid taxes based upon a blended class rate of 2.5698% applied against the estimated market value for the current year's taxes and the City's current tax capacity rate. The method of calculating the payment is as provided for in Exhibit `B" attached hereto and made part hereof. The Partnership shall make such payment on or before the time at which the second installment of real estate taxes is due and payable without penalty, or November Pt; whichever is earlier. The Partnership's obligation to make such payment shall cease if the 4(d) class rate is eliminated; subject to Item #7. The Partnership's obligation shall terminate when all bonds are retired. 6. Escrow/Deposits and Withdrawals from Escrow. The City and the Partnership shall create an escrow ( "Escrow ") with an escrow agent, under terms and with an escrow agent acceptable to the City and the Partnership. Creation of the Escrow shall occur approximately 30 days before the first deposit is to be made by the Partnership as subsequently defined. Upon creation of the Escrow, the City shall make a one -time deposit of $38,850 (City Deposit). By October 1' 1999, the Partnership shall deposit the difference between the real estate taxes shown on the attached proforma (Exhibit C) less the Annual Payment described in Item #5 and the actual real estate taxes for the project for the year in question (Partnership Deposits). Deposits shall continue until such time as the Escrow holds sufficient funds to provide for the installation of a sprinkler system in the Project's buildings that sprinkle the common areas and provide two sprinkler heads in each living unit. Escrow funds shall then be released to pay for the costs and expenses incurred or to be incurred relative to installation of the sprinkler system. When the sprinkler system has been installed and paid for, the Partnership shall not be required to make any further Partnership Deposits and all funds remaining in the Escrow shall revert to the Partnership. Subject to Item #7, if the 4(d) class rate is eliminated and funds in the Escrow are insufficient to pay for the installation of the sprinkler system in the buildings, the Escrow shall be terminated and the City Deposit plus accrued interest shall be returned to the City. Remaining funds shall be returned to the Partnership. 7. Changes to 4(d) Class Rate. Should the State of Minnesota modify the property tax system resulting in the elimination of the 4(d) class rate, both parties agree to meet and review revisions to this agreement in a good faith attempt to accomplish the objectives set forth herein. Adoption of such revisions shall not be unreasonably withheld. Page 7