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WHEREAS, the Tax Increment Financing Plan for the TIF District provides for the <br /> Developer to be reimbursed, in an amount up to a maximum total assistance sum of Thirty-Five <br /> • Thousand and No/100 Dollars ($35,000.00), upon evidencing payment of annual real estate <br /> taxes; and <br /> WHEREAS, the 1998 real estate tax year is the first year Developer is eligible for a <br /> reimbursement payment, based on the January 2, 1997, value of the Project; <br /> NOW, THEREFORE, BE IT RESOLVED that the City, the EDA and the Developer <br /> agree on the following terms and conditions for reimbursement of the Land Write Down: <br /> 1. The EDA hereby pledges the Tax Increment it receives from the TIF District to <br /> the City of Elk River to enable the City to reimburse Developer for the Land <br /> Write Down identified in the TIF Plan. <br /> 2. Payments shall be made by the City to Developer, in a total amount not to exceed <br /> the Land Write Down, pursuant to the terms of the Note attached as Exhibit A <br /> to this Agreement (the "Note"). <br /> 3. The sole source of funds for payment of the City's obligations under the Note <br /> shall be the tax increment generated by the TIF District. If taxes are not paid, <br /> or taxes paid are not sufficient to generate tax increment, no payment on the Note <br /> shall be due from the City. <br /> • 4. If Developer fails to make real estate tax payments prior to the date when said <br /> taxes are due to Sherburne County, an Event of Default under this Agreement <br /> shall exist. No payments shall be made to Developer under the terms of the Note <br /> if an Event of Default occurs, and payments shall not be resumed until the <br /> Default is remedied. The Default shall be deemed remedied upon evidence of <br /> receipt of payment in full for real estate taxes from Sherburne County. <br /> 5. After reimbursing Developer for the principal sum of the Land Write Down, no <br /> further payments shall be due under this Agreement and the City shall request that <br /> Sherburne County decertify the TIF District. <br /> 6. Developer shall complete construction and shall occupy all or a substantial portion <br /> of the Project by December 31, 1996. Failure to complete construction and <br /> achieve occupancy of the Project by this date shall be an Event of Default under <br /> this Agreement and City and EDA shall have the right to terminate this <br /> Agreement and their obligations hereunder. <br /> 7. Developer shall, prior to January 2, 1997, provide City with evidence acceptable <br /> to City of Developer's expenditures for Development Site acquisition costs. <br /> • PXB 123191 2 <br />