Agenda - Council - 07/25/2006 - Laserfiche WebLink

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8. Muir's Request for Public Subsidy. Based on the pro forma Muir provided to the City in response to the Citis request for development proposals, Muir has identified a funding shortfall of $3,800,000. The City and Muir are reviewing various cost estimates in Muir's pro forma and discussing possible sources of outside funding (See Sections 5.7 and 5.8) in an attempt to reduce or eliminate the projected shortfall. Muir has asked the City to consider providing Muir with proceeds fromTax Increment Financing or Tax Abatements to eliminate all or part of the projected shortfall. Although the City is willing to continue to discuss possible strategies for reducing or eliminating the projected shortfall, Muir acknowledges and agrees that the City has not represented to Muir that the City will provide Tax Increment Financing, Tax Abatements or any other public subsidy, and that the City is under no obligation to do so. The City acknowledges and agrees that Muir has advised the City that absent a mutually acceptable means of eliminating the projected funding shortfall Muir may not be willing to execute a Development Agreement with the City. If the City and Muir have not reached a mutually acceptable agreement as to the nature and extent, if any, of the City's use of tax increment financing, tax abatements or other City funding sources to subsidize all or a part of the proj ected shortfall on or before August 31, 2006, either party may terminate this Agreement by written notice to the other party. 9. Miscellaneous. 9.1 Default and Attorney's Fees. If the City defaults in the performance of its obligations under Section 4 of this Agreement, Muir may commence an action in Anoka County District Court seeking a court order enjoining the City's breach of said Section 4, and if Muir prevails in any such action, Muir shall be entitled to recover from the City its reasonable attorneys' fees and costs. .IfMuir defaults in the performance of its obligations under Section 7, the City shall be entitled to refuse to accept or act upon any applications associated with the development of the Property and may terminate this Agreement upon ten days written notice to Muir. . .9.2 Execution and Counterparts. The City and Muir may execute separate counterparts of this Agreement and, in that case, this Agreement shall be deemed to be fully executed upon the parties' exchange of counterpart signature pages. ~ 9.3 Complete Agreement. This Agreement reflects the entire agreement between the City and Muir regarding the development of the Development Property and any prior written or oral agreement where understandings are merged herewith. If the City and Muir enter into a Development . Agreement as contemplated in Section 5, the terms of this Agreement shall merge with the terms of the Development Agreement and, in the event of a conflict between the terms of this Agreement and the terms ofthe . DevelopIl)ent Agreement, the terms of the Development Agreement shall control. 9.4 Binding Nature of Agreement. Except for the obligations of the City under Section 4, Muir's obligations under Section 7 and the provisions of 1919544v3 7 -280- . . .