02/28/2005 Council Packet - Laserfiche WebLink

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ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Developer acknowledges that the Authority is providing substantial aid and assistance in furtherance of the redevelopment through issuance of the Note. The Developer understands that the Tax Increments pledged to payment on the Note are derived from real estate taxes on the Development Property, which taxes must be promptly and timely paid. To that end, the Developer agrees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Development Property and the Minimum Improvements. The Developer acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Reduction of Taxes. The Developer agrees that prior to completion of the Minimum Improvements, it will not cause a reduction in the real property taxes paid in respect of the Development Property through: (A) willful destruction of the Development Property or any part thereof; (B) willful refusal to reconstruct damaged or destroyed property, except to the extent otherwise provided in Section 5.1(e); (C) subject to Section 6.3, apply for a deferral or abatement of property tax on the Development Property pursuant to any law; or (D) convey or transfer or allow conveyance or transfer of the Development Property to any entity that is exempt from payment of real property taxes under State law. Section 6.3. Covenant Not to Petition. Prior to the Maturity Date, the Developer agrees not to file any petition or claim with any Tax Official, seeking to reduce the market value of the Development Property and the Minimum Improvements for ad valorem tax purposes below a minimum value of $1,310,000. Nothing in this section is intended to constitute a minimum assessment agreement within the meaning of Section 469.177, subd. 8 of the TIF Act. However, failure by Developer to comply with this Section is an Event of Default under this Agreement, entitling the Authority to the remedies described in Article IX hereof. SJB- 258192v3 LN 140 -89 16