7.2. SR 04-21-2014 - 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 21st day of May, 2014 between the City of Elk River, Minnesota, a Minnesota municipal corporation ("City") and Spectrum Building Company, a Minnesota non-profit corporation ("SBC"). The City and SBC are jointly hereinafter referred to as the "Parties." RECITALS: SBC has requested that the County of Anoka, Minnesota (the "County") provide conduit debt financing by issuing 501(c)(3) tax-exempt and taxable lease revenue bonds in an aggregate principal amount not to exceed Four Million Two Hundred Fifty Thousand and No/100 Dollars ($4,250,000.00) (the `Bonds"). The proceeds from the sale of the Bonds shall be used to finance (i) the acquisition, construction, and improvements of the Borrower's charter school facilities located at 11044 Industrial Circle NE in the City consisting of approximately 23,740 square feet of improvements, including gymnasium and classroom facilities and associated infrastructure improvements (the "SBC Project"); (ii) the funding of a debt service reserve fund; (iii) payment of a portion of the interest on the Bonds; and (iv) payment of the costs of issuing the Bonds. The SBC Project is located on property legally described on Exhibit A attached hereto and incorporated herein (the "Property"). The City has agreed, in accordance with applicable Federal and Minnesota law, to give local host approval to permit the Bonds to be issued by the County or another issuer in the event that 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, the Borrower shall pay the City $56,043.20 not later than 10 days following a determination by the City that the Property is real estate tax exempt according to Sherburne County records. 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. I. TAX EXEMPTION. The Parties agree that the payments due under this Agreement shall be conditioned upon the designation of the Property as exempt from real estate taxation pursuant to Minnesota Statutes, Section 272.02, Subd. 42. 2. PAYMENT BY SBC TO THE CITY. As consideration for providing the City providing host approval as permitted by Minnesota law, SBC shall pay the City the amount of $56,043.20 not later than 10 business days following a determination by the City that the Property is real estate tax exempt according to Sherburne County records. In order to provide for such payment, upon the issuance of the Bonds, SBC shall deposit $56,043.20 with the trustee for the Bonds with instructions to hold said amount until 4418470 EL185-19