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FIRST AMENDMENT TO
<br />CONTRACT FOR PRIVATE DEVELOPMENT
<br />
<br /> THIS AGREEMENT, made and entered into on the. day of ,2004, by and between the City of
<br />Ramsey, 15153 Nowthen Boulevard NW, Ramsey, MN 55303, ("City"), O'Brien Properties of Monticello, LLC, a
<br />Minnesota limited liability company, 2827 Anthony Lane South, Minnesota, MN, (the "Developer"), and Anoka
<br />Electric Cooperative, a Minnesota cooperative association, 14601 Ramsey Boulevard NW, Ramsey, MN 55303 (the
<br />"Seller").
<br />
<br /> WHEREAS, The parties entered into a Contract for Private Development (the "Agreement") on October 1,
<br />1998; and
<br />
<br /> WHEREAS, The Developer constructed a 31,000 square foot project ("Phase 1") of the project as
<br />described in the Agreement; and
<br />
<br /> WHEREAS, The Developer has not constructed Phase II of the project which is a 34,000 square foot
<br />office/warehouse building to be constructed on Lot 2, Block 1, AEC ENERGY PARK THIRD ADDITION, Anoka
<br />County, Minnesota ("Phase II"); and
<br />
<br /> WHEREAS, The Business Subsidy Act was established per Milmesota Statutes Sections 116J.993 to
<br />116J.995 (the "Business Subsidy Act") and it requires that businesses set and achieve goals relating to increasing tax
<br />base and quality job growth; and
<br />
<br />WHEREAS, the Business Subsidy Act was enacted subsequent to the Agreement; and
<br />
<br /> WHEREAS, The parties desire to amend the Agreement to provide a business subsidy to Developer in
<br />consideratiou for the Developer's construction of Phase II and to comply with the Business Subsidy Act; and
<br />
<br />WHEREAS, In order to grant any business subsidy to Developer, Developer must comply with the
<br />Business Subsidy Act.
<br />
<br />NOW, THEREFORE, it is agreed by the parties hereto as follows:
<br />
<br />A. Tile following Paragraph 2.1 m is added to the Agreement.
<br />
<br />m. Business Subsidies Act.
<br />
<br />(i)
<br />
<br />Ill order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995
<br />(the Business Subsidies Act), the Developer acknowledges and agrees that the amount of
<br />the Business Subsidy granted by the City to the Developer under this First Amended
<br />Agreement is Fifty Thousand and 00/100 Dollars ($50,000) which is an amount equal to
<br />the financial assistance provided by the City that includes the Development Property,
<br />public improvements. The Developer further acknowledges that the Business Subsidy is
<br />needed because the Project is not sufficiently feasible for the Developer to undertake
<br />without the Business Subsidy. The Tax Increment District is an economic development
<br />district and the public purpose of the Business Subsidy is to encourage the redevelopment
<br />of the Development Property in the City. The Developer agrees that it will meet the
<br />following goals (tlxe "Goals"): It will create at least seven (7) full time jobs in connection
<br />with the operation and maintenance of the Minimum Improvements at an hourly wage of
<br />at least $12.00 per hour within two years from the Benefit Date, which is the date of the
<br />building pern-fit issued by the city for the construction of the Minimum Improvements.
<br />
<br />(ii)
<br />
<br />If the Goals are not met, the Developer agrees to repay all or a part of the Business
<br />Subsidy to the City, plus interest ("Interest") set at the implicit price deflator defined in
<br />Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit
<br />Date, compounded semiannually. If the Goals are met in part, the Developer will repay a
<br />portion of the Business Subsidy (plus Interest) determined by multiplying the Business
<br />Subsidy by a fraction, the numerator of which is the number of jobs in the Goals xvhich
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