03/12/2001 Council Packet - Laserfiche WebLink

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responsibility for payment of the Special Assessments relating to the Property at the time of issuance of the Certificate of Completion for the Minimum Improvements. The Authority shall first use Tax Increment collected with regard to the Minimum Improvements to pay to the City the principal of the Special Assessments, plus interest at an annual rate of 8 percent from the date of issuance of the Certificate of Completion on the unpaid balance. After full payment to the City of the principal and interest on the Special Assessments and reimbursement of the Authority's Administrative Expenses, the Authority shall use Available Tax Increment to pay the Developer the Property Write Down and reimbursement of the Administrative Fee pursuant to sections 5.2 and 5.3 of this Agreement. Payment of Available Tax Increment shall be remitted by the Authority to the Developer on or before February 1 and August 1 of each year, with an estimated beginning of August 1, 2005, until the Termination Date. Section 5.2. Administrative Fee. The Developer has paid the Authority the Administrative Fee in the amount of $5,000 to cover a portion of the Authority's expenses in negotiating this Agreement and other costs associated with the project. The Authority agrees to reimburse the Developer for the Administrative Fee out of Available Tax Increment, after first satisfying its obligation regarding the Special Assessments and reimbursement of the Administrative Expenses. Section 5.3. Property Write Down. In order to facilitate the financial feasibility of the development of the Property and in consideration for the Developer's fulfillment of its covenants and obligations under this Agreement, the Authority agrees to write down the cost of the Property for the Developer. The Developer represents that it has entered into an agreement to purchase the • Property from the Seller for $333,601. The Developer agrees to provide the Authority a copy of the purchase agreement to verify the price of the Property. The Authority agrees to reimburse the Developer $124,279 out of Available Tax Increment as the Property Write Down. Section 5.4. No Representation Regarding Available Tax Increment. The Authority's financial commitment under this Agreement regarding the Property Write Down and reimbursement of the Administrative Fee is a revenue obligation only and will be paid by the Authority only after sufficient Tax Increment has been received by the Authority to fully pay the Special Assessments payable to the City, including principal and interest on the unpaid balance, and to reimburse the Authority's Administrative Expenses. The Authority makes no representations or warranties that the Available Tax Increment will be sufficient to pay the Developer for the Property Write Down and to reimburse the Administrative Fee. The Developer acknowledges that Available Tax Increment is subject to calculations by the County and changes in State law, including proposals to modify the property tax system regarding fmancing of public education which may be considered or enacted by the Minnesota legislature in 2001. Some or all of the Property Write Down and Administrative Fee reimbursement may not be made prior to the Termination Date due to insufficient Available Tax Increment. The Developer also acknowledges that the estimates of Available Tax Increment which may have been made by the Authority or its agents, officers or employees are estimates only and are not intended for reliance by the Developer. RHB- 192977v2 LN140 -75 9