Agenda - Council - 01/10/1995 - Laserfiche WebLink

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Draft 1/4/95 Exhibit H AGREEMENT TO PAY DEFICIENCIES THIS A( ~REEMENT, made and entered as of this ~ day of , 1995, by and between ,~e City of Ramsey, a Minnesota municipal corporation, having its principal office at 15153 Nowth m Boulevard N.W., Ramsey, MN ("City"), and Wendell's, Inc., a Minnesota corporation havi tg its principal office at 2424 East Franklin Avenue, Minneapolis, MN 55406- 0024 ("Develope '"). WITNE$SETH: WHERE~S, the City and the Developer entered into an agreement entitled Conlxact for Private Developm[ent ("Development Agreement"), dated , 1995, regarding development of Icertain real property situated in the City of Ramsey, legally described in Attachment A hereto ("Development Property"); and WHERI~.~AS,,, . the City has established' Tax Increment Financing District No. 2 CTIF District ) pursuant to Minnesota Statutes, Sections 469.174 through 469.179, and has established Development Diltrict No. 1 pursuant to Minnesota Statutes, Sections 469.124 through 469.134, which includes th~ Development Property; and WHEREAS, the Development Agreement requires the City to perform cert__sin activities on or adjacent to tl~e Development Property and requires the Developer to construct certain improvements ("~um 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 ~e Development Property, the City has agreed to use its tax increment financing funds ("TIF Fund~") or to otherwise fund such costs; and WHEREAS, the City is unwilling to undertake said transactions unless the Developer guarantees its per~mnce of covenants and promises as more fully described in the Development Agreement and as~ t~,,-th~!further set out below: NOW, TI~EREFORE, in consideration of the mutual covenants and obligations of the City and the Developer, the parties do hereby agree as follows: 1. Except as iqualified by Section 3 herein, if for any reason whatsoever the actual tax increment generated from the Development Property payable with the real estate taxes due in any cai ~e~ndar year commencing in 1996 and ending in 2012, is less than the required tax increment ~"Required Increment") as del'reed in Section 2 herein, the City will notify the Developer~f the difference between the actual tax increment and the Required Increment CDeficien~y"), and will make written demand of the Developer for the payment thereof. The DevelOper must, within 30 days after receipt of written notice of demand from the City, pay ~ the City the Deficiency. For the purpose of this Agreement, the term "tax increment"tmeans the portion of the real estate taxes payable on the Development Property that are inlexcess of the taxes attributable to the Development Property's original tax capacity a~_d any adjustments thereto made by the county auditor pursuant to Minnesota Statutes, S~ction 469.177. 2. The New ~ncrement to be generated from the Development Property is estimated to be Nineteen '14housand Five Hundred Thirty Eight Dollars ($19,538) per year. The increment is projected~ to start with the tax revenues received in 1998 and end in 2012. Page 38