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Term (or at least 15 days after receipt from Sherburne County <br />of the respective settlements of Tax Increments), commencing <br />July 15, 2002 (the "Payment Dates"), in the respective amount <br />or amounts described in this subsection. The sole source of <br />funds available for payment of the City's obligations under <br />this Section and correspondingly under the TIF Bond shall be <br />the Available Tax Increments, hereby defined to be, for each <br />calendar year, the Tax Increments respecting taxes payable in <br />that year, provided that the City may deduct from the Tax <br />Increments its then-unpaid Administrative Expenses, including <br />without limitation the City's costs of establishing, <br />implementing and administering the TIF District. <br /> <br /> The principal amount of the TIF Bond shall be the lesser <br />of $700,000 and the sum of the amounts certified by the <br />Company and accepted by the City pursuant to Section 3.2(b). <br />All payments made on the TIF Bond shall be applied first to <br />accrued and unpaid interest thereon and second toward payment <br />of the principal thereof. All amounts of Tax Increments which <br />are not Available Tax Increments are not subject to this <br />Agreement, and the City retains full discretion as to any <br />authorized application thereof, regardless of whether the <br />Available Tax Increments are sufficient to reimburse the <br />Company in full for the above-described costs. To the extent <br />that the Available Tax Increments are insufficient, through <br />the final Payment Date, to pay all amounts otherwise due on <br />the TIF Bond, said unpaid amounts shall then cease to be any <br />debt or obligation of the City whatsoever. <br /> <br /> (d) The unpaid principal of the TIF Bond shall bear <br />simple, non-compounded interest at 8.00% per annum from the <br />date of execution of the Certificate of Completion. Interest <br />shall be computed on the basis of a 360-day year consisting of <br />12 months of 30 days each. <br /> <br /> (e) The City shall not endeavor to issue the TIF Bond so <br />that the interest thereon shall be exempt from federal or <br />State income taxation, and the Parties accordingly anticipate <br />that the TIF Bond will be a "taxable" obligation. <br /> <br /> (f) The TIF Bond shall be a special and limited revenue <br />obligation of the City and not a general or moral obligation <br />of the City, and only Available Tax Increments shall be used <br />to pay the amounts due on the TIF Bond. <br /> <br /> (g) The City's obligation to make payments on the TIF <br />Bond shall be conditioned upon the requirement that there <br />shall not at the time have occurred and be continuing an Event <br />of Default; provided, however, that (unless the City shall <br />have terminated this Agreement) if such Event of Default shall <br />subsequently have been cured to the reasonable satisfaction of <br /> <br />~98072.2 7 <br /> <br /> <br />