5.1. HRSR 12-06-2004 - Laserfiche WebLink

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Agreement) as determined by the County Assessor or the County Assessor's Market Value of the Minimum Improvements as of the January 2 immediately following the Completion Date (the "Pledged Tax Increment"). "Available Tax Increment" means the portion of the real property taxes generated by the Development Property (as such term is defined in the Development Agreement) which Development Property is located within the Downtown Phase I Tax Increment Financing District No. 22 which is actually remitted and retained by the City as tax increment pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1799, as the same may be amended or supplemented from time to time (the "Tax Increment Act"). This Note shall terminate and be of no further force and effect following February 1, 2032 or such later date as the City receives Available Tax Increment as a result of the payment of real property taxes that were delinquent on February, 2032 (the "Final Payment Date") or any date upon which the City shall have terminated the Development Agreement under Section 9.4(c) thereof, or on the date that all principal and interest payable hereunder shall have been paid in full, whichever occurs earliest. This Note may be prepaid in whole or in part at any time without penalty. The City makes no representation or covenant, express or implied, that the Pledged Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that no Developer's Event of Default under Section 9.2 of the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid Namounts shall become payable, without interest accruing thereon in the meantime, if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the City elects to cancel and rescind the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, for a fuller statement of the rights and obligations of the City to pay the principal of this Note and the interest thereon, and said provisions are hereby incorporated into this Note as though set out in full herein. THIS NOTE IS A SPECIAL, LIMITED REVENUE OBLIGATION OF THE CITY AND IS PAYABLE BY THE CITY ONLY FROM THE SOURCES AND SUBJECT TO THE QUALIFICATIONS STATED OR REFERENCED HERE IN. THIS NOTE IS NOT A GENERAL OBLIGATION OF THE CITY OF ELK RIVER, MINNESOTA, AND NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWERS OF THE CITY ARE PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THIS NOTE AND NO PROPERTY OR OTHER ASSET OF THE CITY, SAVE AND EXCEPT THE ABOVE-REFERENCED TAX INCREMENTS, IS OR SHALL BE A SOURCE OF PAYMENT OF THE CITY'S OBLIGATIONS HEREUNDER. The Registered Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any person executing or registering this Note shall be liable personally hereon by reason of the • issuance or registration thereof or otherwise. 1674205v8 E-2