7.3 SR 05-15-2023 - Laserfiche WebLink

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(2) The Developer acknowledges that it has not relied on any representations of the City, or any of their 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 Program. The Tax Abatements are payable solely from and to the extent of the Tax Abatements actually received by the City, and nothing herein shall be construed to obligate the City to make payments from any other funds. (3) 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. (4) The Developer acknowledged that a failure to complete construction of the Project in accordance with the timelines set forth in Section 3.3 hereof constitutes an Event of Default and could reduce the amount of the Tax Abatements below the Reimbursement Amount. (5) 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 their consultants shall have liability to Developer if the actual Tax Abatements are less than the amounts estimated. (6) 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 tax -payable year (the "Statutory Cap"), all pursuant to Minnesota Statutes, Section 469.1813, Subdivision 8. The City reasonably expects that the Statutory Cap will not cause the Tax Abatements under this Agreement to be reduced; however, Developer acknowledges that, during the term of the Tax Abatement under this Section, if the total abatements payable by the City under the Tax Abatement Act in any year would exceed either of their respective Statutory Caps, the Statutory Cap is allocated first to any of the City's existing abatement obligations as applicable, second to the Tax Abatements payable under this Agreement, and third to any other abatements granted after the date of this Agreement. Section 3.9 Business Subsidy Act. (1) In order to satisfy the provisions of the Business Subsidy Act, the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is the value of a portion of the Tax Abatement Property, which is approximately $138,204, and that the Business Subsidy is needed because the Project may not be feasible for the Developer to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to increase the tax base, help the Developer expand in the City and the State, help develop a vacant site in the City, and help retain and create employment opportunities in the City and the State. The Developer agrees that it will meet the following goals (the "Goals"): it 9 EL 185\74\870137.v5