Agenda - Economic Development Authority - 07/13/2017

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ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1. Site Improvements. The parties agree that the installation of the Site Improvements are essential to the successful completion of the Project. The costs of the construction of Site Improvements shall be paid by the Developer. The City shall reimburse the Developer for the lesser of $250,000 for the costs of the construction of Site Improvements actually incurred and paid by the Developer (the "Reimbursement Amount"), as further provided in Section 3.3 hereof. Section 3.2. Limitations on Undertaking of the City. Notwithstanding the provisions of Section 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse the Developer for the costs identified in Section 3.1, if the City, at the time or times such payment is to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured. Section 3.3. Reimbursement. (1) The City shall reimburse the Developer the Reimbursement Amount in three installments of $83,333 each; the first installment to be paid one year after the date the certificate of occupancy is issued by the City; the second installment two years after the date the certificate of occupancy was issued; and the third installment three years after the date the certificate of occupancy was issued. Prior to the payment of the first installment the Developer shall submit paid invoices of $250,000 for Site Improvement costs. (2) The obligation to pay the Reimbursement Amount shall be paid solely from funds held by the City in the EDA fund of the City and shall not constitute a full faith and credit obligation of the City. Section 3.4. Business Subsidies Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidies Act"), the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is $250,000 which is the Reimbursement Amount for the installation of the Site Improvements and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. (2) The creation of jobs has been determined not to be a goal of the City for the Project pursuant to Minnesota Statutes, Sections 116J.993 to 116J.995 and the City has held a public hearing and set the wage and job goals at zero. (3) The Developer shall provide the City with information about the Project as requested by the City so that the City can satisfy the reporting requirements of Minnesota Statutes, Section 116J.994, Subd. 8. 5 8387812v1