Agenda - Economic Development Authority - 09/14/2017

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agrees that it will take no action to secure such tax status of its portion of the Property during the term of this Agreement. 7. Assessment. The Owners request that up to 40% of the actual cost of the Improvement Project be assessed against the Property as detailed in Exhibit B and Exhibit C. Information contained in Exhibit B and Exhibit C, including assessment amounts, will be updated upon receiving bids for the Improvement Project, and upon completion of construction 8. Payment of Assessment. a. Riverstone Development. Certified assessments for the Plat shall be payable in equal semi- annual installments over a period of four (4) years with the first installment due May 15, 2019, and subsequent installments due May 15 and October 15 each year. The fixed interest rate applied to the Assessment shall be set at the five (5) year U.S. Treasury rate on the date of this agreement plus 2 percent. The owner of any property so assessed may, at any time prior to certification of the assessment or the first installment thereof to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the municipal treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption thereof. The owner may at any time prior to November 15 of any year, prepay to the treasurer of the municipality having levied said assessments, the whole assessment remaining due. Assessments levied against any parcel shall be paid in full upon transfer of ownership. Appendix D is an example payment schedule. b. Hageman Holdings. No annual or semi-annual assessment payments are required until any portion of the Hageman Property is developed or sold. Interest shall accrue on the assessment. The fixed interest rate applied to the Assessment shall be set at the five (5) year U.S. Treasury rate on the date of this agreement plus 2 percent. Certified assessments shall be paid in full upon transfer of ownership, or development of, all or any portion of the Hageman Property. Property is deemed "developed" as of the date of final plat approval by the Ramsey City Council. 9. Collateral. d. Riverstone Development. Riverstone Developemnt shall furnish the City with an irrevocable letter of credit equal to 40% of the assessments made against the Riverstone Property. This letter of credit will remain in place until all assessment payments are made by Riverstone Development. The City shall immediately draw on this letter of credit in the event Riverstone Development defaults on making any assessment payments. This letter of credit shall be furnished and executed within the City's final plat and development agreement process for the proposed Riverstone residential development project. This letter of credit shall adhere to the City's Finance Department minimum standards and must be approved by the City's Finance Director. This letter of credit is separate from the letter of credit that will be required by the City through the City's standard platting and development agreement processes. e. Hageman Holdings. No additional collateral required. 10. Successors and Assia-ns. The covenants, waivers and agreements contained in this Agreement shall bind the successors and assigns of each Owner and shall run with such Owner's portion of the Property and bind all its successors in interest. It is the intent of the parties hereto that this Agreement be in a Page 3 of 12