7.3 SR 05-15-2023 - Laserfiche WebLink

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Abatement Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Tax Abatement Property, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (3) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Tax Abatement Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings with respect to the Tax Abatement Property; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (4) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, or any State or federal law, of the ad valorem property taxation of the Tax Abatement Property so long as this Agreement remains in effect; (4) Prior to the Termination Date, it will not cause a reduction in the real property taxes paid in respect of the Tax Abatement Property through: (i) willful destruction of the Tax Abatement Property or any part thereof, or (ii) willful refusal to reconstruct damaged or destroyed property. The Developer also agrees that it will not, prior to the Termination Date, take any action which will result in the Tax Abatement Property becoming exempt from real estate property taxes or transfer or permit transfer of the Tax Abatement Property to any entity whose ownership or operation of the property would result in the Tax Abatement Property being exempt from real estate property taxes under State law; and (5) Prior to the Termination Date, it will not challenge the market value of the Tax Abatement Property with any governmental entity. Section 3.8 Tax Abatement Program. The Tax Abatement Program shall exist for a period of up to 11 years beginning with real estate taxes payable in 2025 through 2035. (1) The City shall make the first payment of Tax Abatements to the Developer on the later of August 1, 2025 or the date that (A) the City has determined the Reimbursement Amount in accordance with Section 3.1(2) hereof, (B) the City has determined that the Project has been constructed in accordance with Construction Plans approved by the City in accordance with Section 3.3 hereof, (C) the Developer has submitted to the City paid invoices for Eligible Costs of the Project; (D) the Developer has paid all of the City's Administrative Costs required to have been paid as of such date in accordance with Section 3.10 hereof, and (E) no Event of Default exists hereunder (the "Initial Payment Date"). From the Initial Payment Date and on each February 1 and August 1 thereafter and continuing until the earlier of the date that the Developer shall have received the Reimbursement Amount or the Termination Date, the City shall pay the Developer the amount of the Tax Abatements actually received by the City from the County in the previous six-month period. 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 as more fully set forth in Article V herein. 8 EL 185\74\870137.v5