03-24-1997 EDA Packet - Laserfiche WebLink

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(b) The Authority shall reimburse the Developer for the remaining Site Preparation Costs, up to a maximum total of $70,000, starting in the year in which the Authority receives Available Tax Increment. It is anticipated that the Authority will begin to receive Available Tax Increment in 1998. Payments shall be made to the Developer on approximately July 31 and December 31 of each year, but in any event not more than 30 days following the date on which the Authority receives Available Tax Increment in its semi-annual tax settlement from the County. Subject to the Authority's right to prepay or the Authority's satisfaction of its obligation hereunder at an earlier date, the Authority shall make payments to the Developer until the Termination Date. The Authority shall not be obligated to pay the Developer under this Reimbursement Agreement in any year in which there exists no Available Tax Increment. Section 4. Prepayment. The Authority may prepay without penalty all or part of the amount due under this Reimbursement Agreement at any time. Upon such payment, the Authority shall have no further obligation to make payments to the Developer. Section 5. Limit of Obligation. The Developer understands and agrees that the reimbursement obligation of the Authority for the Site Preparation Costs above $45,000 and up to a maximum amount of $70,000 is limited to the Available Tax Increment generated prior to the Termination Date. Depending upon the amount of Available Tax Increment, the parties recognize that there may not be sufficient Available Tax Increment prior to the Termination Date to reimburse all of the Site Preparation Costs. Failure by the Developer or its successors or assigns to pay real estate taxes due on the Minimum Improvements may reduce or eliminate the Authority's obligation under this Reimbursement Agreement. The Developer further understands and agrees that the Authority's obligation hereunder is a revenue obligation only, payable solely from Available Tax Increment. Failure by the Authority to make a payment to the Developer under this Reimbursement Agreement due to a lack of Available Tax Increment shall not constitute an Event of Default under the Agreement or this Reimbursement Agreement. Section 6. Exclusive Obligation. This Reimbursement Agreement constitutes the sole and exclusive obligation of the Authority to make and the sole and exclusive right of the Developer to receive reimbursement for that portion of the Site Preparation Costs above $45,000 and up to a maximum amount of $70,000. The Developer further acknowledges that it has no other or further remedy against the Authority to enforce collection thereof. Section 7. Nature of Obligation. The parties acknowledge and understand that the financial and other commitments made in this Reimbursement Agreement constitute an obligation within the meaning of Minnesota Statutes, Chapter 475 and Section 103 of the United States Internal Revenue Code of 1986. RHB116867 LN140-47 2