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Agenda - Council Work Session - 08/03/1998
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Agenda - Council Work Session - 08/03/1998
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Meetings
Meeting Document Type
Agenda
Meeting Type
Council Work Session
Document Date
08/03/1998
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<br />Exhibit F <br /> <br />LIEN AGREEMENT <br /> <br />This Agreement, made and entered into this day of , 1996, by and <br />between the City of Ramsey, a Minnesota municipal corporation, having its principal office at <br />15153 Nowthen Boulevard Northwest, Ramsey, Minnesota (City) and First State Bank of Isanti, a <br />Minnesota Corporation, having its principal office at 29 West Main Street, Isanti, Minnesota <br />(Developer); <br /> <br />WITNESSETH: <br /> <br />WHEREAS, pursuant to Minnesota Statutes, ~469.124 through 469.134, the City has <br /> <br />created Development District No.1 (Development District) and, pursuant to Minnesota Statutes, <br /> <br />~469 .17 4-~469 .179, has established Tax Increment Financing Districts (TIP District); and <br /> <br />WHEREAS, the City has adopted a development program (Program) and tax increment <br /> <br />financing plan (TIP Plan) for the Development District and TIF District, which Program and TIF <br /> <br />Plan call for the City to perform certain site improvements (Site Improvements) and for the Owner <br /> <br />to construct certain permanent improvements (Minimum Improvements) on property located in the <br /> <br />City and legally described as shown in Exhibit A (Development Property); and <br /> <br />WHEREAS, the nature of the Site Improvements to be performed by the City and of the <br /> <br />Minimum Improvements to be constructed by the Owner on the Development Property are fully <br /> <br />detailed in that certain Contract for Private Development dated between the <br /> <br />City and the Owner "Development Agreement"; and <br /> <br />WHEREAS, the City desires to have assurance that the Owner will complete the <br /> <br />Minimum Improvements following installation of the Site Improvements by the City. <br /> <br />NOW, THEREFORE, in consideration of the mutual covenants and obligations the City <br /> <br />and the Owner, the parties do hereby agree as follows: <br /> <br />1. As security for the completion of the project, the Owner hereby grants, and the City hereby <br />does have, a lien on the Development Property. <br /> <br />2. The lien is in the amount of One Hundred Eighteen Thousand Dollars ($118,000), which <br />amount the parties agree represents the City's investment for the rehabilitation of School <br />House #28 and the surrounding site. <br /> <br />3. The lien amount shall be repaid to the City within 90 days of the closing date unless, within <br />such 90 days, the Owner completes construction of the Minimum Improvements. Payment <br />of the lien amount shall be suspended during any time in which the Owner is making <br />substantial progress on construction of the Minimum Improvements. If the Owner fails to <br />make substantial progress for a 90-day period following initiation of work, the lien amount <br />may become immediately due and payable. Notwithstanding any other provision herein to <br />the contrary, the lien amount may become immediately due and payable if the project is not <br />completed by March 1, 1997 unless the said improvements are subject to unavoidable <br />delays as defined in the Development Agreement. <br /> <br />Page 34 <br />
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