7.5 SR 06-17-2024 - Laserfiche WebLink

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such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Developer and the City at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Project. (d) The Developer agrees to notify the City immediately in the case of damage exceeding $250,000 in amount to, or destruction of, the Project or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith repair, reconstruct, and restore the Project to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply the net proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction, and restoration of the Project, regardless of whether the net proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Developer. (e) In lieu of the Developer's obligation to reconstruct the Project as set forth in this Section, the Developer shall have the option of paying to the City an amount that, in the opinion of the City, is sufficient to pay in full the outstanding principal and accrued interest on the Purchase Price Note. (f) The Developer and the City agree that all of the insurance provisions set forth in this Section 4.1 shall terminate upon the termination of this Agreement. Section 4.2 Assessment Agreement. (a) On the Closing Date, the Developer and the City shall execute an Assessment Agreement in substantially the form attached hereto as Exhibit E. The Developer shall be responsible for obtaining the certification of the County Assessor to the Assessment Agreement and for recording the Assessment Agreement against the Development Property. The Assessment Agreement shall specify the Assessor's Minimum Market Value for the Development Property for calculation of real property taxes. Specifically, the Developer agrees to a minimum market value for the Development Property as of January 2, 2026, for taxes payable in the year 2027, of not less than $8,238,400(such minimum market value is herein referred to as the "Assessor's Minimum Market Value"). (b) Nothing in the Assessment Agreement shall limit the discretion of the County Assessor to assign a market value to the Development Property in excess of the Assessor's Minimum Market Value or prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in market value of the Development Property for property tax purposes; provided however, that the Developer shall not seek a reduction of such market value below the Assessor's Minimum Market Value for any year's assessment for which the Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect with respect to the payable 2026 through the payable 2035 real estate property taxes. (c) The Assessment Agreement must be certified by the County Assessor, as provided in Minnesota Statutes, Section 469.177, Subdivision 8, upon a finding by the County Assessor that the Assessor's Minimum Market Value is reasonable. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the filing by the Developer of the Assessment Agreement in the office of the County Recorder and/or Registrar of Titles, as applicable, shall constitute notice to any subsequent encumbrancer 17 EL 185\77\951254.v6 Page 313 of 372