9.0. EDSR 12-11-1995 - Laserfiche WebLink

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12/07/95 15:21 DRE MPLS 4 4417425 NO.919 P004/008 • WHEREAS, the City Council held a public hearing on the TIF Plan on June 19, 1995, and approved the TIF Plan on that date; and WHEREAS, an Economic Development Tax Increment Financing District ("TIF District") was established on the Development Site, legally described as follows: Lots 6 and 7, Block 1, McChesney Industrial Park ; and WHEREAS, the Tax Increment Financing Plan for the TIF District provides for the Developer to be reimbursed, in an amount up to fifteen percent (15%) of the assessed market value of the Project as of January 2, 1997, over a series of years upon evidencing payment of annual real estate taxes; and WHEREAS, the 1998 real estate tax year is the first year Developer is eligible for a reimbursement payment, based on the January 2, 1997, value of the Project; NOW, THEREFORE, BE IT RESOLVED that the City, the EDA and the Developer agree on the following terms and conditions for reimbursement of the Development Costs: • 1. The EDA hereby pledges the Tax Increment it receives from the TIF District to the City of Elk River to enable the City to reimburse Developer for the Development Costs identified in the TIF Plan. 2. Payments shall be made by the City to Developer, in a total amount not to exceed Developer's actual Development Costs or fifteen percent (15%) of the assessed market value of the Project as of January 2, 1997, whichever is less, pursuant to the terms of the Note attached as Exhibit A to this Agreement (the "Note"). 3. The sole source of funds for payment of the City's obligations under the Note shall be the tax increment generated by the TIF District. If taxes are not paid, or taxes paid are not sufficient to generate tax increment, no payment on the Note shall be due from the City. 4. The annual tax increment payment will be determined by the City's Finance Director, and will take into consideration the original tax capacity of the Development Site prior to the construction of the Project. 5. If Developer fails to make real estate tax payments prior to the date when said. taxes are due to Sherburne County, an Event of Default under this Agreement shall exist. No payments shall be made to Developer under the terms of the Note if an Event of Default occurs, and payments shall not be resumed until the • MB 100445,02 2