4.2. SR 04-06-1998 - Laserfiche WebLink

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SCHEDULEB $160,000 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF SHERBURNE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER LIMITED REVENUE TAX INCREMENT NOTE The Economic Development Authority In and For the City of Elk River, Minnesota (the"Authority"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Morrell & Morrell, Inc., or their permitted assigns (collectively, the "Owner"), solely from the source, to the extent and in the manner hereinafter provided, the principal amount of this Note, being Three Hundred Thousand Dollars ($300,000) (the "Principal Amount"), on the dates (the "Scheduled Payment Dates") and in the amounts (the "Scheduled Payment") set forth as "Developer Payment" on the payment schedule attached hereto as Exhibit B. Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at its postal address within the United States which shall be designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the Authority, which has been issued by the Authority pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4, to aid in financing a "project", as therein defined, of the Authority consisting generally of defraying certain public development costs incurred and to be incurred by the Authority within and for the benefit of its Development District No. 1 (the "Project"). THIS NOTE IS NOT A DEBT OF THE CITY OF ELK RIVER OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE CITY, THE STATE NOR ANY POLITICAL SUBDMSION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THIS NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. The Scheduled Payment of this Note due on any Scheduled Payment Date is payable solely from and only to the extent that the Authority shall have received in the calendar year preceding such Scheduled Payment Date "Available Tax Increment". For purposes of this Note, Available Tax Increment with respect to any Scheduled Payment Date is defined as the Tax Increment, as defined in that certain Contract for Private Development between the Authority and the Owner dated as of ., (the "Contract"), generated in the six (6) month period immediately preceding the Scheduled Payment with respect to that certain real property described on the attached Exhibit A (hereinafter referred to as the "Development Property"), after deducting ten percent (10%) of the Tax Increment generated in each year, and after further deducting from the remainder the amount BeckP 548664.1 B-2