5.1. SR 06-10-2002 - Laserfiche WebLink

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extent necessary) in each year thereafter through 2011, the City will abate to the Company the paid City taxes with respect to the Project in each such year; provided that the total amount of all abatements hereunder shall be limited to $200,000, whereupon all abatements hereunder shall cease. It is understood and agreed that the taxes levied by taxing jurisdictions other than the City are not abatable pursuant to this Agreement and that such things as taxes payable and levied with respect to market value (e.g., certain referendum and other levies, if any) are not subject to abatement. Section 4. Business Subsidy Agreement. The City and the Company recognize and agree that the Abatement under this Agreement is a "business subsidy" under Minnesota Statutes, Sections 116J.993 through 116J.995, as amended (the "Subsidy Law"), and is subject to the provisions thereof, including without limitation reporting requirements and five year commitment by the Company. Accordingly, it is agreed: (a) The estimated fair market value of the assistance and subsidy hereunder is $200,000. The type of the subsidy is property tax abatement. (b) The public purposes of the subsidy are to further development of the City's commercial/industrial tax base (including a spur to additional private investment in the West Business Park) and to retain and create jobs. (c) For purposes of Section 116J.994, Subdivision 3, of the Subsidy Law, the goals of the subsidy are completion of the Project and the operation and leasing thereof by the Company for at least five years after the "Benefit Date" of the subsidy, as defined in the Subsidy Law, which is hereby determined to be the date of the City's Certificate of Occupancy for the Project. (d) For purposes of the Subsidy Law, the Abatement shall be considered to be a forgivable loan to the Company from the City. It is agreed, as required by Section 116J.994, Subdivision 6, that if the Company is in default under this Section 4, the Company shall immediately be obligated to repay to the City the full amount of the Abatement plus interest thereon from its date at the implicit price deflator, as defined under Minnesota Statutes, Section 275.70, Subdivision 2. The Abatement is needed in order to induce the Company to develop and operate the Project in the City of Elk River. The Company covenants that it will continue to operate the Project for at least five years after the Benefit Date. (e) The Company represents that it has no parent corporations. (f) The Company represents that the following are all of the State of Minnesota and "local government agency" grants for the Project (other than the assistance hereunder): 1410047vl 2