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PRE - DEVELOPMENT ESCROW AND REIMBURSEMENT AGREEMENT <br />1. Parties and Effective Date.. The parties to this Pre - Development Escrow and <br />Reimbursement Agreement (the "Agreement ") are The Housing and Redevelopment Authority in <br />and for the City of Ramsey, Minnesota a public politic and corporate under the laws of the State <br />of Minnesota (the "HRA "); F &C Development, Inc., an Indiana corporation ( "F &C "); and <br />Commercial Partners Title, LLC, a Minnesota limited liability Company ( "Escrow Agent "). This <br />Agreement is dated, for reference purposes, and is effective as of July 2010. <br />2. Recitals. <br />a. The HRA owns the property legally described as Tracts A, B, C, D and E, <br />Registered Land Survey No. 241, Anoka County Minnesota ( "RLS 241 "). The Property <br />is located within the plat of Ramsey Town Center and is a part of the Ramsey Town <br />Center Development. <br />b. The HRA and F &C are discussing various agreements which, if finalized <br />and approved by the parties and their respective governing bodies, would provide for the <br />HRA's and/or the City of Ramsey's conveyance of an approximately four acre portion of <br />RLS 241 (the "Property ") to F &C, F &C's development of an approximately 200 unit, <br />market rate, residential rental project on the Property (the "Project ") and the City of <br />Ramsey's and/or the HRA's contribution of a public subsidy toward the cost of the <br />Project. <br />c. The Northstar Commuter Rail Line runs along the southerly boundary of <br />the Ramsey Town Center Development. Currently there is not a Northstar Commuter <br />Rail Line station located within the Ramsey Town Center Development and the train <br />does not stop at Ramsey Town Center. The HRA and F &C believe that, in the near <br />future, the Metropolitan Council will approve a rail stop and the construction of a station <br />within Ramsey Town Center, and F&C's proposal to develop the Project is based that <br />approval and construction. <br />d. F &C proposes to use the proceeds of a HUD loan to finance a portion of <br />the cost of constructing the Project, and there are various predevelopment activities that <br />F &C must undertake to obtain the materials and information necessary to apply for the <br />HUD loan. <br />e. The HRA and F &C want F &C to submit a loan application to HUD as <br />soon as reasonably possible, but F &C is unwilling to bear the entire cost of the <br />predevelopment activities necessary in connection with the submission of a HUD loan <br />application in light of the fact that the Metropolitan Council has not yet approved a <br />Northstar Commuter Rail Line stop or the construction of a Northstar Commuter Rail <br />Line station within Ramsey Town Center. <br />f. The HRA and F &C are entering into this agreement to provide a <br />mechanism whereby the HRA and F &C can initially share in the cost of the <br />predevelopment activities necessary to allow F &C to submit a HUD loan application and <br />