Agenda - Council - 11/10/2015 - Laserfiche WebLink

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(the "Development Property"); and WHEREAS, the City has established Tax Increment Financing District No. 2 pursuant to M.S. § 469.174 through § 469.179, and has established Development District No. 1 pursuant to M.S. § 469.124 through § 469.134, which includes the Development Property; and WHEREAS, the Agreement requires the City to construct certain public improvements and requires the Developer to construct certain improvements (the "Minimum Improvements") thereon, all as more fully described in the 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 or to otherwise fund such costs; and WHEREAS, the Agreement requires the execution of this Agreement to Pay Deficiencies; and NOW, THEREFORE, in consideration of the mutual covenants and obligations of the City and the Developer, the parties do hereby agree as follows: 1. Except as qualified by paragraph 3 herein, if for any reason, the Tax Increment generated from the Development Property payable with the real estate taxes due in any calendar year commencing in 2006 and ending in 2012, is less than the required tax increment (the "Required Increment") as defined in paragraph 2 herein, the City will notify the Developer of the difference (the "Deficiency"), and will make written demand upon the Developer for the payment thereof. The Developer or its successors and assigns, within 30 days after the City gives written notice, shall pay to the City the Deficiency. Payments will be based upon the normal real estate tax payment schedule of biannual payments. 2. The required Net Tax Increment to be generated from the Development Property is Six Thousand Seven Hundred and 00/100's Dollars ($6,700.00) per year. The tax increment is projected to start with the tax revenues received in 2006 and end in 2012. 3. This Agreement to pay Deficiencies remains an obligation of the Developer and its heirs, executors, representatives, successors and assigns until the Maturity Date as defined in the Agreement. This Agreement to pay Deficiencies shall run with the Development Property. 4. Capitalized terms not otherwise defined herein have the meanings given them in the Agreement. 45