Agenda - Council - 03/24/1998 - Laserfiche WebLink

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DRAFT 3/18/98 LIEN AGREEMENT Exhibit F This Agreement, made and entered into this 24th day of March, 1998, by and between the City of Ramsey, a Minnesota municipal corporation having its principal office at 15153 Nowthen Boulevard Northwest, Ramsey, Minnesota 55303 (City) and Peck Construction, Inc., a Minnesota Corporation having its principal office at 1548 - 164th Lane NE, Ham Lake, M/nnesota 55304 (Owner); WITNESSETH: WHEREAS, pursuant to M.S. §469.124 through §469.134, the City has created City Development District No. 1 (Development District) and, pursuant to M.S. §469.174 through §469.179, has established Tax Increment Financing District No. 2 (TtF District); and WHEREAS, the City has adopted a development program (Program) and tax increment financing plan (TIF Plan) for the Development District and TIF District, which Program and TIF Plan call for the City to perform certain site improvements (Site Improvements) and for the Owner to construct certain permanent improvements (Minimum Improvements) on property located in the City and 1egally described Lot 2, Block 1, Business Park 95 Seventh Addition, (Development Property); and WHEREAS, the nature of the Site Improvements to be performed by the City and of the Minimum Improvements to be constructed by the Owner on the Development Property are fully detailed in that certain Contract for Private Development dated March 24, 1998 between the City and the Owner ("Development Agreement"); and WHEREAS, the City desires to have assurance that the Owner will complete the Minimum Improvements following installation of the Site Improvements by the City. NOW, THEREFORE, in consideration of the mutual covenants and obligations the City and the Owner, the parties do hereby agree as follows: As security for the Site Improvements installed on the Development Property by the City, the Owner hereby grants and the City hereby does have a lien on the Development Property. The lien is in the amount of Four Hundred Ninety-five Thousand Four Hundred Sixty-six and 00/100 Dollars ($495,466.00), which amount the parties agree represents the City's cost for performing the Site Improvements and the extension of City services. The lien amount shall be repaid to the City within 90 days of completion date of the Site Improvements by the City unless, within such 90 days, the Owner completes construction of the Minimum Improvements. Payment of the lien amount shall be suspended during any time in which the Owner is making substantial progress on construction of the Minimum Improvements. If the Owner fails to make substantial progress on the Minimum Improvements for a 90-day period following initiation of work, the lien amount may become immediately due and payable in full, Notwithstanding any other provision herein to the contrary, Page 32 i I i I I I I