4.5. SR 06-04-2018 - Laserfiche WebLink

Home Browse Search

from the Tax Increment Financing (Housing) District No. 25 (the "TIF District") less the amount of Tax Increments, if any, which the City must pay to the school district, the County and the State pursuant to the TIF Act including, without limitation, Minnesota Statutes, Sections 469.177, subds. 9, 10 and 11; 469.176, subd. 4h; and 469.175, subd. la, as the same may be amended from time to time. "Tax Increments" are the tax increments derived from the property which is located within the TIF District which are paid to the City and which the City is entitled to retain pursuant to the provisions of and as defined in Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "TIF Act") including, without limitation, Minnesota Statutes, Section 469.177, as amended. The Payment Amounts due hereon shall be payable solely from the Pledged Tax Increments. All payments made by the City under this Note shall first be applied to accrued interest and then to principal. If Pledged Tax Increments are insufficient to pay any accrued interest due, such unpaid interest shall be carried forward without interest. This Note shall terminate and be of no further force and effect following the Final Payment Date defined above, or any date upon which the City shall have terminated the Development Agreement under Section 4.2 thereof or on the date that all principal and interest payable hereunder shall have been or deemed 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. There are risk factors in the amount of Tax Increments that may actually be received by the City and some of those factors are listed on the attached Exhibit 1. The Registered Owner acknowledges these risk factors and understands and agrees that payments by the City under this Note are subject to these and other factors. The City's payment obligations hereunder shall be further subject to the conditions that (i) no Event of Default under Section 4.1 of the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, including without limitation failure to deliver the Compliance Certificate in accordance with Section 3.3 of the Development Agreement and the Declaration (as defined therein), and (ii) the Development Agreement shall not have been terminated pursuant to Section 4.2, and (C) all conditions set forth in Section 3.2(2) of the Development Agreement have been satisfied as of such date. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this Note has not been terminated in accordance with Section 4.2 of the Development Agreement and said Event of Default shall thereafter have been cured in accordance with Section 4.2. If pursuant to the occurrence of an Event of Default under the Development Agreement the City elects, in accordance with the Development Agreement to cancel and rescind the Development Agreement and/or this Note, 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 AND NOT A GENERAL OBLIGATION OF THE CITY AND IS PAYABLE BY THE CITY ONLY D-2 519394v81SB EL185-49