Agenda - Council - 11/28/1995 - Laserfiche WebLink

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Draft 11~24/95 AGREEMENT TO PAY DEFICIENCIES Exhibit H THIS AGREEMENT, made and entered as of this., day of_. , 1996, by and between thc City of Ramsey, a Minnesota municipal corporation, having its principal office at 15153 Nowthen Boulevard Northwest, Ramsey, MN ("City"), and Automated EDM Incorporated .a Minnesota Corporation having its principal office 6860 Shingle Creek Parkway, Suite 101, Brooklyn Center, MN 55430 (Developer): WITNESSETH: WHEREAS, the City and the Developer entered into an agreement entitled Contract for Private Development ("Development Agreement"), dated , 1996, regarding development of cert_aJn real property situated in the City of Ramsey, legally described in Attachment A hereto ("Development Property"); and WHEREAS, the City has established Tax Increment Financing District No. 2 ("TIF District") pursuant to Minnesota Statutes, Sections 469.174 through 469.179, and has established Development District No. 1 pursuant to Minnesota Statutes, Sections 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, ff for any reason whatsoever the actual tax increment generated from the Development Property payable wilh the real estate taxes due in any calendar year commencing in 1997 and ending in 2012, is less than the required tax increment ("Required Increment'l) aS defined in Section 2 herein, the City will notify the Developer of the difference between the actual tax increment and the Required Increment ("Deficiency"), '.and will make written demand of the Developer for the payment thereof. The Developer must, within 30 days after receipt of written notice of ddmand from the City, pay to the City the Deficiency: For the purpose of this Agreement, the term "tax increment" means the portion of the real estate taxes payable on the Development Property that are in excess of the taxes attributable to the Development Property's original tax capacity and any adjustmen~s..thereto made by. the county auditor p. ursu. ant to Minnesota Statutes, Section 469.177. The new increment to be generated from the Development Property is estimated to Ten Thousand Four Hundred eighty-eight Dollars ($10,488). The increment is projected to start with the tax revenues received in I998 and end in 2012. This Agreement'remains an'obligation of the Developer until the Maturity Date as defined in the Development Agreement. Page 37 I I I I I I I I I I I I I