7.1 SR 10-05-2020 - Laserfiche WebLink

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Section 3.5 Real Property Taxes. The Developer shall pay or cause to be paid all real property taxes payable with respect to all and any parts of the Development Property acquired and owned by it and any statutory or contractual duty that shall accrue subsequent to the date of its acquisition of title to the Development Property (or part thereof) and until the Developer's obligations have been assumed by any other Person pursuant to the provisions of this Agreement or title to the property is vested in another Person. The Developer agrees that prior to the Termination Date, so long as it owns all or any portion of the Development Property: (1) It will not seek administrative review or judicial review of the applicability or constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Minimum Improvements or the Developer or raise the inapplicability or constitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, that "tax statute" does not include any local ordinance or resolution levying a tax; and (2) It will not seek any tax exemption, tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.1813 through 469.1815, or any other State or federal law, of the taxation of real property contained in the Development Property between the date of execution of this Agreement and the Termination Date. (3) The Developer shall notify the City within 10 days of filing any petition to seek reduction in market value or property taxes on any portion of the Development Property under any State law (referred to as a "Tax Appeal"). If as of any Payment Date, any Tax Appeal is then pending, the City will continue to make payments on the TIF Note but only to the extent that the Tax Increments relate to property taxes paid with respect to the market value of the Development Property not being challenged as part of the Tax Appeal and the City will withhold the Tax Increments related to property taxes paid with respect to the market value of the Development Property being challenged as part of the Tax Appeal, all as determined by the City in its sole discretion. The City will apply any withheld amount to the extent not reduced as a result of the Tax Appeal promptly after the Tax Appeal is fully resolved and the amount of Tax Increments, as applicable, attributable to the disputed tax payments is finalized. Section 3.6 Change in Use of Minimum Improvements. The Developer agrees that for itself, and its successors and assigns, until the Termination Date, it shall devote the Development Property to, and in accordance with, the uses described in this Agreement. The Developer warrants that the use of the Development Property during the term of this Agreement will be a warehouse facility with office space consisting of less than 15% of the total square footage of the facility pursuant to the Lease, unless the City first approves any change in use in writing. If the Developer fails to comply with the requirements of this Section 3.6, the City will decertify the TIF District and cease payments to the Developer on the TIF Note. Section 3.7 Legal and Administrative Expenses. (1) The Developer shall be solely responsible for all costs incurred by the Developer. 10 LL185\61\675612.v1