Agenda - Council - 09/12/1994 - Laserfiche WebLink

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Draft 9/8/94 ARTICLE VI TAX INCREMENT Section 6.1. Assessn.~ent Agreement. The City and the Developer shall execute the Assessment Agreement and Certification of County Assessor contained in Exhibit D of this Agreement. The City shall then present the Assessment Agreement to the county assessor for certification. The assessor shall assign a market value to the property which shall not be less than the minimum market value contained in the Assessment Agreement. The market value so established ma),, in the discretion of the assessor, exceed the value contained in the Assessment Agreernent. Section 6.2. Review of Taxes. Except as otherwise provided in this Agreement, the Developer shall pay alt real property taxes and special assessments assessed against the Property. The Developer agrees that prior to tax-payable year 2012: (1) it will not seek administrative review or judicial review of the applicability of any property tax statute determined by any tax official to be applicable to the Development Property or the Developer, or raise the applicability of any such tax statute as a defense in any proceedings including delinquent tax proceedings; (2) it will not seek administrative review or judicial review of the constitution',dity of any such tax statute determined by any tax official to be applicable to the Development Property or to the Developer, raise the unconstitutionality of such tax statute as a defense in any proceedings, including delinquent proceedings; (3) it will not request the assessor to reduce the assessed market value or tax capacity of ail or any portion of the Development Property; (4) it will not petition the board of equalization of the City or the board of equalization of the county to reduce the assessed market value or tax capacity of all or any portion of the Development Property; (5) it will not petition the board of equalization or con]missioner of revenue of Minnesota to reduce the assessed market value or tax capacity of all or any portion of the Development Property; (6) it will not commence an action in a district court or the tax court of the state pursuant to Minnesota Statutes, Chapter 278, seeking a reduction in the assessed market value or tax capacity of the Development Property; (7) it w/il not make an application to the Minnesota commissioner of revenue requesting an abatement of real property taxes pursuant to Minnesota Statutas, Chapter 270; and (8) it will not commence any other proceedings, whether administrative, legal or equitable, with any administrative body within the City, count.'>,, or the state, or with any court of the state or the federal government with regard to the. minimum market value contained in the Assessment A~eement. The Developer shall not, prior to tax-payable >,ear 2012, apply for a deferral of' property tax on the Development Property. Nothing contained herein shall be deemed to limit the right or opportunity of the Developer to challenge through any of the means set forth above, or otherwise, that part of any valuation or the market value which is in excess of the stipulated value contained in the Assessment A=m-eement; provided, however, that the Developer may not institute or prosecute any challenge to the excess which if successful would also result in a reduction of the assessment below the stipulated value. Section 6.3. A~reement to Pay Deficiencies. The Developer and the City shall execute the A~eement to Pay Deficiencies contained in this Agreement as Exhibit H. Section 6.4 .Right to Collect Delinquent Taxes. The Developer acknowledges that the City is providing substantial aid and assistance in furtherance of the development through Tax Increment Financing. The Developer understands that the increment pledged to repay the TIF District Fund in the form of real estate taxes must be promptly and timely paid. To that end, the Developer a~ees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay before delinquency all rea! estate taxes assessed against the Development Property based upon the minimum market'value as stipulated in the Assessment A~eement. The Developer acknowledges that this obligation creates a contractual right on behalf of the City to sue the Developer or its Page 12