Agenda - Council - 08/24/2021 - Laserfiche WebLink

Home

(3) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.1813, or any other State or federal law, of the ad valorem property taxation of the Development Property between the date of execution of this Agreement and the Termination Date. (4) The Developer and Owner may seek through petition or other means to have the market value of the Development Property reduced, provided however, that the Developer an Owner shall not seek a reduction of such market value below the Assessor's Minimum Market Value. Until the final Payment Date of the TIF Note (February 1, 2032), such activity must be preceded by written notice from the Developer and Owner to the City indicating its intention to do so. Upon receiving such notice, or otherwise learning of the Developer's and Owner's intentions, the City may suspend payments due under the TIF Note until the actual amount of the reduction is determined, whereupon the City will make the suspended payments less any amount that the City is required to repay the County as a result of any reduction in market value of the Development Property. During the period that the payments are subject to suspension the City may make partial payments on the TIF Note if it determines, in its sole and absolute discretion that the amount retained will be sufficient to cover any repayment which the County may require. The City's suspension of payments on the TIF Note pursuant to this Section shall not be considered a default under this Agreement. Section 3.6. Lease of Project. (1) Pursuant to the provisions of Minnesota Statutes Section 469.176, Subdivision 4c, the Owner and the Developer agree that, until termination of this Agreement, the Project shall be leased to a tenant or tenants and shall, in any such lease, limit the space within the Project to be occupied by such tenant or tenants to the following uses: (a) the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (b) warehousing, storage, and distribution of tangible personal property, excluding retail sales; and (c) space necessary for and related to the activities listed in (a) and (b). (2) Upon execution of a lease of the Project the Developer shall submit to the City evidence that the operation of the Project conforms to (1) above, it being acknowledged and agreed that a copy of the specific "use" clause from the respective lease shall be deemed to constitute sufficient evidence in satisfaction of this clause. Section 3.7. Execution of Assessment Agreement. Simultaneously with the execution of this Agreement, the Developer and the Owner and the City shall execute an Assessment Agreement pursuant to the provisions of Minnesota Statutes, Section 469.177, Subdivision 8, specifying the Assessor's Minimum Market Value for the Development Property and the Project for calculation of real property taxes. Specifically, the Developer and Owner shall agree to a market value for the Development Property and (a) Phase 1 which will result in a market value as of January 2, 2023 of not less than $20,100,000 until the earlier of (i) December 31, 2031; or (ii) the Termination Date and Phase 2 which will result in a market value as of January 2, 2024 of not 10 13580713v3