6.9.B. SR 05-16-2005 - Laserfiche WebLink

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(f) Failure of the Developer to commence and complete all of the Minimum Improvements. Section 5.5 Use of Tax Increments. The City shall be free to use the Tax Increment, other than the Pledged Tax Increment and the Parking Lot Pledged Tax Increment herein pledged to the payment of the Tax Increment Revenue Note, the Parking Lot Note and any Refunding Bonds, for any other purpose for which the Tax Increment may lawfully be. used pursuant to applicable provisions of the Minnesota law. Section 5.6 Business Subsidy Act. (a) 22% of the principal amount of the Tax Increment Revenue Note and $190,400 of the reduction of SAC and WAC is applicable to the Bluff Block Housing Project (the "Bluff Block Housing Subsidy") and 3% of the principal amount of the Ta-x Increment Revenue Note and $89,600 o(the reduction of SAC and WAC plus 40% of the reduction below fair market value of the purchase price of the' Jackson Block Property is applicable to the Jackson Block Housing Project (the "Jackson Block Housing Subsidy"). The Bluff Block Housing Subsidy and the Jackson Block Housing Subsidy granted to the Developer pursuant to .this Agreement is assistance for housing and therefore the provisions of Minnesota Statutes, Section 116J.993 to 116J.995 (the "Business Subsidy Law") do not apply. (b) The County assessor estimates the current year fair market value of the Bluff Block Property to be Six Hundred Seventy-One Thousand Four Hundred Dollars ($671,400): The Developer represents that the cost of site development for the Bluff Block Property will be not less' than Two Hundred Thousand Dollars ($200,000.00). The purchase price for the Bluff Block Property is not expected to be less than One Million Nine Hundred Twelve Thousand Seven Hundred Fifty Dollars ($1,912,750). 70% of the principal amount of the Tax Increment Revenue Note and $12~623 of the reduction of SAC and WAC is applicable to the Bluff Block Commercial Project (the "Bluff Block Commercial Subsidy"). Based upon these estimates and representations, the Developer represents that because the purchase price and cost of site development for the Bluff Block Property will equal seventy percent (70%) or more oftlie assessor's current year's, estimated fair market value of the Bluff Block Property and the Bluff Block Commercial, Subsidy does n9t constitute a "business subsidy" and thereforethe provisions of the Business Subsidy Law do not apply. (c) 5% of the principal amount of the Tax Increment Revenue Note and $15,167 of the reduction of SAC and WAC plus 60% of the reduction below fair market value of ,the purchase price of the Jackson Block Property is applicable to the Jackson Block Coriunercial Project (the "Jackson Block Commercial Subsidy"). The Jackson Block Commercial Subsidy granted to the Developer pursuant to this Agreement is a subsidy subject to the provisions ofthe Business Subsidy Law. (d) The Tax Increment District is a redevelopment district and the public pUrpose of the Jackson Block Commercial Subsidy is to encourage the redevelopment of an area of the City which is already built up, to help prevent the emergence of blight, to provide employment opportunities to improve the tax base and to encourage tJ.le construction of adjacent housing facilities in the City. Afl;er holding a public hearing November 1,2004, the City has determined 1674205v9 31