Agenda - Council - 09/08/2009 - Laserfiche WebLink

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5. Continued Operations. The Recipient agrees to continue the restaurant operations at the location of the Project for at least five years after the Benefit Date. As used herein "Benefit Date" means the date the Business Subsidy is received. The Business Subsidy is for improvements to property, therefore the Benefit Date refers to the earliest of either: when the improvements are finished for the entire Project; or when the Recipient occupies the property. 6. Financial Obligation of the Recipient if Recipient Does Not Fulfill this Agreement. If the Recipient does not fulfill this Agreement, the Recipient will repay all of the Business Subsidy to the Grantor plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subd. 2, accruing from and after the Benefit Date, compounded semiannually. Said repayment will be pursuant to the terms and conditions of Note One. 7. Business Subsidy Contingency. The amount of the Business Subsidy is $209,863.00 which is the total of the SAC and WAC. As a guarantee for Recipient to fulfill this Agreement, Recipient shall upon execution of this Agreement: (a) pay to Grantor $59,000.00 cash as a payment on the SAC. Grantor shall pay the balance of the Sac or $59,000.00 to the MWCC. (b) Execute Note One in the principal amount of $150,863.00. The said $150,863.00 is the total of the Grantor's $59,000.00 SAC payment and the City's $91,863.00 WAC fee. In order to complete its agreement to provide $209,863.00 in Business Subsidy, Grantor, as maker, will execute Note Two. Note Two is a promise by Grantor to repay to Recipient the $59,000.00 cash it paid on the SAC fee. Note Two will be paid over a term of five (5) years at the rate of $11 ,800.00/yr, be non-interest bearing and paid only if the Restaurant contingency is satisfied. 8. Reporting Requirements. (a) The Recipient agrees to furnish to the Grantor on or before March 1 in each year the report required in Section I 16J.994, Subd 7 of the Act on forms developed by the Minnesota Department of Trade and Economic Development (the "Reports"). (b) If the Grantor does not receive the Reports, it will mail the Recipient a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the Reports are not made, the Recipient agrees to pay to the Grantor a penalty of $100 for each subsequent day until the Reports are filed up to a maximum of $1,000. 9. Parent Corporation. There is no parent corporation for the Recipient. 10. Other Grantors. The following is a list of all financial assistance to be provided by all grantors for the Project: None. 11. Miscellaneous Provisions. The following miscellaneous provisions are a part of this Agreement. Amendments. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless 2