7.1 SR 07-16-2012 - Laserfiche WebLink

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AGREEMENT FOR PAYMENT IN LIEU OF FEES BETWEEN THE CITY OF ELK RIVER, MINNESOTA AND SPECTRUM BUILDING COMPANY This Agreement for Payment in Lieu of Fees ("Agreement") is made this day of 2012 between the City of Elk River, a Minnesota municipal corporation ("City") and Spectrum Building Company a Minnesota non-profit corporation ("SBC"), City and SBC are jointly hereinafter referred to as the "Parties." RECITALS: SBC has requested that the City provide conduit debt financing by issuing a 501 c3 tax-exempt and taxable lease revenue bonds in the amount not to exceed Eleven Million Four Hundred Thousand and No/100 Dollars ($11,400,000.00) (the "Bonds"). The proceeds from the sale of the Bonds shall be used for debt financing for the purchase of property and renovation of a public schoolhouse located at 17796 industrial Circle N.W. (the SBC Project). The SBC Project is located on property legally described on Exhibit A attached hereto and incorporated herein. The City has declined to be the conduit issuer of the Bonds, but instead has agreed, in accord with applicable Federal and Minnesota law, to give local host approval to permit the Bonds to be issued by Anoka County, Minnesota or any other issuer in the event that Anoka County declines. By granting said host approval, the City will not be eligible to receive funds paid to issuers in these circumstances. The Parties have agreed that, as consideration for providing host approval, consideration in the amount of $194,276 shall be paid to the City not later than 10 days following confirmation by Sherburne County that the property is real estate tax exempt. Further, Parties agree and acknowledge that the amount to be paid by SBC to the City is fair and reasonable notwithstanding that Spectrum High School, tenant of the SBC Project (the "Tenant"), is a public charter school funded by the State of Minnesota. 1. TAx EXEMPTION. The Parties agree that the payments due under this Agreement shall be conditioned upon the securing by SBC of a real estate property tax exemption for the property described on Exhibit A. 2. PAYMENT By SBC TO THE CITY. Upon a determination that the property is exempt from property tax, as consideration for providing the City providing host approval as permitted by Minnesota law, SBC shall pay the City the amount of $194,276 not later than ten (10) business days following receipt by SBC of written confirmation by Sherburne County that the property is exempt from paying real estate taxes. Further, upon the closing of the sale of the Bonds and from the proceeds received, the trustee for the Bonds will hold in reserve said amount pending the written confirmation from Sherburne County. Such payment shall be in addition to any ordinary and usual