Agenda - Council - 12/12/2000 - Laserfiche WebLink

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-182- (6) The Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal of and interest on the Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on_the Note .are .insufficient for_ such purposes, the difference shall be ca~rried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the Note. (7) The City's obligation to make payments on the Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Ageement and (B) this Agreement shall not have been rescinded pursuant to Section 4.2(b). (8) The Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit C. In the event of any conflict between the terms of the Note and the terms of this Section 3.2, the terms of the Note shall govern. The issuance of the Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the Note may require in connection therewith, are hereby authorized and approved by the City. Section 3.3. Compliance With Low and Moderate Income Requirements. In accordance with the provisions of Minnesota Statutes, Section 469.1761, the Developer covenants that at least 40% of the residential units in the Project will be occupied by individuals whose income is 60% or less of area median gross income. The Developer covenants that the Project will be operated to meet all of the requirements of a low-income housing credit under Section 42 of the Internal Revenue Code of 1986, as amended through December 31, 1992. The Developer will establish such monitoring procedures with respect to applicants for and occupants of dwelling units in the Project as the City may reasonably require to assure compliance with this requirement. On or before January 1 each year during the term of this Agreement the Developer shall submit to the City a Compliance Certificate covering the 12 month period preceding the date of the Compliance Certificate certifying that the Project is in compliance with the provisions of Section 3.3. Section 3.4. Wage and Job Goals. The City is not providing tax increment financing for the purpose of economic development or job growth purposes and therefore the provisions of Minnesota Statutes, Section 116J.991 are not applicable and the City is not establishing wage and job goals in connection with the Project. Section 3.5. Transfer of Proiect. In the event the Developer wishes to transfer ownership of the Project, the Developer must obtain the consent of the City to transfer and assign the Note to the new owner provided that the new owner assumes all of the obligations of the Developer under this Agreement. In such event, the Developer may be released from this Development Ageement. Section 3.6. Execution of Assessment A~reement. The Developer shall agree to, and with the City shall execute, an Assessment Agreement pursuant to the provisions of Minnesota I i I i I I I I ! I I I I I I I