03/13/2006 Council Packet (2) - Laserfiche WebLink

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• • (f) The YMCA must continue or cause to be continued operation of the Facility as recreational facility for at least five years after the Benefit Date. For the purpose of this Section, the Facility will be considered to be maintained in operation if the Facility is current in all required licenses and is open during regular business hours at least five days a week (other than temporary closure for renovation or a similar business reason). (g) The YMCA does not have a parent corporation. (h) The YMCA has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Site or the Facility. ?. Job and Wage Goals. In accordance with Section 116J.994, subdivision 4, the City has determined after a public hearing that the creation or retention of jobs is not the goal of the business subsidy provided under this Agreement. Accordingly, the wage and job goals are set at zero. 3. Remedies. If the YMCA fails to meet the goals described in Section 1(c), the YMCA shall repay to the City upon written demand from the City (a) the total amount of the subsidy described in Section 1(a) hereof; and (b) interest on the amounts in clause (a) at the rate set forth in the Business Subsidy Act, accrued from the Benefit Date to the date of the default. If the Facility is timely completed but the YMCA fails to meet the five -year operation goal, the total subsidy to be repaid will be prorated by the portion of the five -year operation period elapsed as of the date of default. If a default consists of failure to comply with the covenants described in Section C of the Development Agreement, the total subsidy to be repaid will be prorated based on any reasonable methodology that takes into account partial fulfillment of goals. The parties agree and understand that, under other agreements entered into regarding the Facility, covenants regarding operation of the Facility and residential use covenants may extend beyond the five -year period described in this Agreement. However, in no event will the repayment remedy described in this Section 3 apply to any default under any such continuing covenant after expiration of the five -year period described in Section 1(f). YMCA agrees and understands that it may not receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the YMCA satisfies its repayment obligation under this Section, whichever occurs first. 4. Reports. YMCA must submit to the City a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2007 and continuing until the later of (i) the date the goals stated Section 1(c) are met; (ii) 30 days after expiration of the five -year period described in Section 1(f) or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3. The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the YMCA regarding the required forms. If YMCA fails to timely file any report required under this Section, the City will mail the YMCA a warning within one week after the required filing date. If, after 14 days of the