Agenda - Council - 09/27/2011 - Special

Home

Improvements in accordance with the Final Construction Plans; (iii) notified the City that Developer has substantially completed the Minimum Improvements and is entitled to receive the Certificate of Completion described in Section 5.5; (iv) submitted to the City invoices showing the Eligible Costs Developer actually incurred and for which Developer is seeking reimbursement; (v) submitted to the City evidence, reasonably acceptable to the City, that Developer paid those invoices from a source or sources other than the proceeds of the Loan No. 1; and (vi) repaid Loan No. 2, in full, prior to or when due; and if, at that time, Developer is not in default in the performance of Developer's obligations under this Agreement, the City will execute and date the TIF Note and deliver the TIF Note to Developer. Section 6.2 Amount of the TIF Note. If the City is obligated to issue the TIF Note pursuant to Section 6.1, the TIF Note shall be for an amount equal to the least of: (a) $3,000,000.00; or (b) the sum of all Eligible Costs Developer has actually incurred and paid; or (c) an amount equal to the City's estimate of 85% of the tax increment that will be derived from Development Property and paid to the City between January 1, of the year that is two years following the City's issuance of Certificate of Completion and February 1, 2038 and that the City will be entitled to retain pursuant to the terms of the Tax Increment Act, as in effect at the time of the City's estimate, assuming that during each year between the year following the year in which the City issues the Certificate of Completion and 2036 the Development Property will have an assessed value for purposes of calculating ad valorum real estate taxes that is equal to the assessed value that the Anoka County Assessor establishes for the Development Property for purposes of ad valorum real estate taxes assessed in the year following the year in which the City issues the Certificate of Completion and due in payable in the following year; provided, however, the amount of the TIF Note shall not be less than $2,000,000.00. Section 6.3 Interest. As set forth in the TIF Note, the unpaid principal amount of the TIF Note shall bear simple, non - compounding interest from the date of issuance of the TIF Note at 6.25% per annum Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. Section 6.4 Payments. The principal amount of the TIF Note and the interest thereon shall be payable solely from Tax Increments the City receives in 2015 and thereafter. On each TIF Note Payment Date and subject to the provisions of this Section 6.4 and the TIF Note, the City shall pay, against the principal and interest outstanding on the TIF Note, the Tax Increments the City actually received since January 1, 2015, in the case of the first TIF Note Payment Date and since the immediately preceding TIF Note Payment Date in the case of subsequent TIF Note Payment Dates. All such payments shall be applied first to pay accrued, unpaid interest and then to reduce the principal of the TIF Note. Section 6.5 TIF Note Shall Be a Limited Obligation of the City. The TIF Note shall be a special and limited obligation of the City and not a general obligation of the City, and only 2695614v12 11