7.3 SR 03-01-2021 - Laserfiche WebLink

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(5) Other than a $ loan from the Minnesota Department of Employment and Economic Development, the Tax Abatements and comparable tax abatements from the County, there are no other state or local government agencies providing financial assistance for the Project other than the City and the County. (6) [There is no parent corporation of Sportech or the Developer.][DEVELOPER TO CONFIRM] Section 3.9 Tax Abatement Program. The Tax Abatement Program shall exist for a period of up to 14 years beginning with real estate taxes payable in 2023 through 2036. The City shall pay the Developer the amount of the Tax Abatements actually received by the City in the previous six month period on February 1 and August 1 of each year commencing August 1, 2023 or the first February 1 or August 1 thereafter in the first tax -payable year in which both (i) the Developer has provided a copy of the Lease to the City as required by Section 3.6 hereof, and (ii) the Developer has complied with Section 3.1(2) hereof. Such payments shall continue until the earlier of the date that the Developer shall have received the Reimbursement Amount or February 1, 2037. The City may terminate the Tax Abatement Program and this Agreement at an earlier date if an Event of Default occurs and the City rescinds or cancels this Agreement. (1) The Developer acknowledges that it has not relied on any representations of the City, or any of its officers, agents, or employees, and has not relied on any opinion of any attorney of the City, as to the Federal or State income tax consequences relating to the Tax Abatement payments under this Section. The pledge of Tax Abatements is subject to all the terms and conditions of the Tax Abatement Resolution. The Tax Abatements is payable solely from and to the extent of the Tax Abatements, and nothing herein shall be construed to obligate the City to make payments from any other funds. (2) The Developer acknowledges that the City shall in no event be obligated to make any payment of Tax Abatements under this Section to Developer unless and until (i) all ad valorem property taxes due and payable with respect to the Tax Abatement Property as of the applicable payment date have been paid in full and (ii) the City has received from the County or any other source as provided by law an ad valorem property tax distribution that includes all or any portion of the Tax Abatements. (3) The Developer acknowledged that a failure to complete construction of the Project in accordance with the timeline set forth in Section 3.3 hereof could reduce the amount of the Tax Abatements below the reimbursement amount. (4) The Developer acknowledges that all estimates of Tax Abatements that have been prepared by or on behalf of the City have been done for the City's use only and neither the City nor its consultants shall have liability to Developer if the actual Tax Abatements are less than the amounts estimated. (5) The Developer further acknowledges that the total Tax Abatements attributable to any calendar year (i.e., the combined payments on Payment Dates of August 1 and the following February 1) may not exceed the greater of $200,000 or 10% of the City's net tax capacity for that 9 LL185\31\703544.v1