Agenda - Council - 08/25/1998 - Laserfiche WebLink

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I I I I I I I I I I 3) The City shall execute any and all other documents as may be reasonably necessary to complete closing of the transfer and any financing activity associated therewith. 4) All real estate taxes due and payable in the year of closing shall be prorated between the parties as of the day of closing. The City shall be responsible for all taxes that have been deferred prior to the sale to the ACHRA. 5) All special assessments, whether levied, pending or ordered by the City Council, shall be paid by the City on the date of closing. SECTION 2. FINANCING. A. Pro Forma Financial Projections. The ACHRA shall, upon receipt of initial cost estimates from Architect, cause to be prepared pro forma financial projections to determine the rental levels at which the Project can be expecled to be financially viable. In the event that such projections produce rental figures considered by either the City or the ACHRA to be in excess of reasonable rental goals for the dwelling units in the Project or in event that an environmental assessment finds an environmental condition that could result in extraordinary expenses or delay to the Project, then, at either party's option, this Agreement may be terminated, within thirty (30) days after receipt of such projections or environmental findings. To the extent that the preliminary out-of-pocket expenses incurred by both parties exceed the ACHRA levy payable in 1998 and available for use in the City of Ramsey, then all such expenses in excess of the levy incurred by either party through the date of such termination shall be shared equally by both parties, and each party shall therefore promptly submit to the other party upon such termination an itemized statement of such out-of-pocket expenses and appropriate reimbursement shall promptly be made (with set-off, as appropriate). Notwithstanding the foregoing and for purposes of this section, all out-of-pocket expenses associated with the acquisition of the Project Site, including but not limited to extension of utilities, shall be borne solely by the City. B. Financing. The ACHRA shall use its best efforts to issue bonds in an amount not to exceed $3,000,000, pursuant to Minnesota Statutes, Section 469.034, which bonds shall be backed by the general obligation of the City, as permitted by law (the "Project Bonds"). 3