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

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'1 I I I I I I I '1 I I I I I I I I I DRAFT 3/18/98 AGREEMENT TO PAY DEFICIENCIES Exhibit H THIS AGREEMENT, made and entered as of this 24th day of March, 1998, by and between the Ci.ty 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 l~aving its principal office at 1548 - 164th Lane NE, Ham Lake, Minnesota ("Developer"). WITNESSETH: WHEREAS, the City and the Developer entered into an agreement entitled Contract for Private Development ("Development Agreement"), dated March 24, 1998, regarding development of certain real property situated in the City of Ramsey, legally described as Lot 2, Block 1, Business Park 95 Seventh Addition ("Development Property"); and WHEREAS, the City has established Tax Increment Financing District No. 2 pursuant to M.S. §469.174 through §469.179, and has established Development District No. 1 pursuant to M.S. §469.124 through §469.134, which includes the Development Property; and WHEREAS, the Development Agreement requires the City to construct certain improvements ("Site Improvements") on or adjacent to the Development Property and requires the Developer to construct certain improvements ("Minimum Improvements") thereon, all as more fully described in the Development Agreement; and WHEREAS, in order to finance the public costs related to construction of the Minimum Improvements on the Development Property, the City has agreed to use its tax increment financing funds ("TIF Funds") or to otherwise fund such costs; and WHEREAS, the Development Agreement requires the execution of this agreement: NOW, THEREFORE, in consideration of the mutual covenants and obligations of the City and the Developer, the parties do hereby agree as follows: Except as qualified by Section 3 herein, if for any reason whatsoever the Net Tax Increment generated from the Property payable with the real estate taxes due in any calendar year commencing in 2000 and ending in 2012, is less than the required tax increment ("Required Increment") as deemed in Section 2 herein, the City will notify the Developer of the difference ("Deficiency"), and will make written demand of the Developer for the payment thereof. The Developer must, within 30 days after receipt of written notice from the City, pay to the City the Deficiency. Payments will be based upon the normal real estate tax payment schedule of biannual payments. The Required Increment to be generated from the Development Property is estimated to be ($XX,XXX.XX) per year. The increment is projected to start with the tax revenues received in and end in , This Agreement remains an obligation of the Developer until the Maturity Date as deemed in the Development Agreement. Page 37