Agenda - Economic Development Authority - 12/01/2003

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City Phase I Utility Improvements on the same dates that the City is obligated to commence and substantially complete conszruction of the City Phase I Roadway Improvements pursuant to Section 7.3. The City Utility Improvements will be public improvements, and the City will maintain the City Utility Improvements as public improvements. 8.4 FINANCING OF CITY PI-IA. SE I UTILITY IMPROVEMENTS. The City w/ll issue general obligation revenue bonds pursuant to lvlinnesota Statutes, Chapter 444, to finance the City Phase I Utility Improvements. The City will repay the bonds fi:om revenues the City's storm sewer, sanitary sewer and water system's generate (hook-up fees and rates and charges). For a per/od of three years after the date hereof, the City will not levy special assessments against the Subject Property to finance the ~ost of the City Phase I Utility Improvements. Thereafter, the City may levy special assessments against the Subject Property to finance the cost of the City Phase I Utility Improvements, but only to the extent necessary to cover shortfalls in the revenues received by the City fi:om hook up fees and rates and charges fi:om the Subject Property to cover debt service on the bonds issued to finance the Phase I Utility Improvements. 8.5 CONDITIONS PRECEDENT TO CITY'S CONSTRUCTION OF CITY PHASE I-I UTILITY IMPROVEM]~_NTS. The City is not obhgated to commence construction of the City Phase II Utihty Improvemems until the conditions preced~ent described in Section 7.8 above are satisfied. 8.6 COM2cf-ENCEMENT ,~,,rD COlVfPLETION OF PI--DkSE ]I CONSTRUCTION. Subject to Force Majeure, the City is obligated to commence and complete construction of the City Phase II Utility hnprovements on the same dates that the City is obligated to commen6e and substantially complete construction of the City Phase II Roadway Improvements pursuant to Sections 7.8 and 7.9. The City Utihty Improvements will be public improvements, and the City will maintain the City Utility Improvements as public improvements. g. 7 FINg2qCING OF CITY PHASE Il Lr'FILITY IMPRO¥~MENTS. The City will issue general obligation revenue bonds pursuant to lv£irmesota Stat'utes, Chapter 444, to finance the City Phase II Utility Improvements. The City will repay the bonds from revenues the City's storm sewer, sanitary sewer and water system's generate (hook;up fees and rates and charges). For a period of three years after the date hereof, the CiYy will not levy special assessments against the Subject Property to finance the cost of the City Phase I[ Utility Improvements. Thereafter, the City may levy special assessments against the Subject Property to finance the cost of the City Phase II Utility Improvements, but only to the extent necessary to cover shortfalls in the revenues received by the City from hook up fees and rates and charges from the Subject Prope~y to cover debt service on the bonds issued to finance the Phase II Utility Improvements. 8.8 FEES. The City represents that the City's current charges for access, hook-up or :onnection to City water, sanitary sewer and storm water utilities are set forth on the attached Exhibit G. The City a~ees that the City will not charge the Developer or_ any Secondary Developer any b./gher access, hook-up or connection fees or charges than those charged to other landowners with.in the City. The City makes nc representati~ons or warranties regarding 'the amount of future access, hook-ap or connection charges. 1555730vl3