4.13 SR 07-15-2024 - Laserfiche WebLink

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A-2 EL185\61\949053.v3 Day (the “Payment Dates”). On each Payment Date the City shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the City preceding such Payment Date an amount equal to the Tax Increments (hereinafter defined) received by the City during the 6-month period preceding such Payment Date (or, with respect to the first Note Payment Date, in the period commencing on the date of issuance of the TIF Note through the day prior to the first Note Payment Date). All payments made by the City under this Note shall be applied first to accrued interest and then to principal. This Note is pre- payable by the City, without penalty, in whole or in part, on any date. Interest shall not accrue during the period of any suspension of payments in accordance with the TIF Agreement. The Payment Amounts due hereon shall be payable solely from 90% of tax increments (the “Tax Increments”) from the Development Property within the City’s Tax Increment Financing (an Economic Development District) District No. 26 (Shoot Steel, Inc. Project) (the “TIF District”) within its Development District No. 1 which are actually paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the “TIF Act”). This Note shall terminate and be of no further force and effect following the earlier of (a) the last Payment Date defined above, (b) any date upon which the City shall have terminated the TIF Agreement in accordance with its terms, (c) the date the TIF District is terminated, or (d) the date that all principal and interest payable hereunder shall have been paid in full. The City makes no representation or covenant, express or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. In the event Tax Increments are not sufficient, the City is not responsible to further fund or reimburse the Developer (or its assigns or creditors) for any such shortfall. The City is not responsible to fund or reimburse any obligation of the Developer (or its assigns or creditors) unless expressly stated in the TIF Agreement. Subject to the terms of the TIF Agreement, the City’s payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the TIF Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said Event of Default shall thereafter have been cured; and further, if pursuant to the occurrence of an Event of Default under the TIF Agreement the City elects, subject to the provisions of Section 6.2 of the TIF Agreement, to cancel and rescind the TIF Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the TIF Agreement for a fuller statement of the rights and obligations of the City to pay the principal of and interest on this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special, limited revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the City, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of and interest on this Note and no property or other asset of the City, save and except the above-referenced Tax Increments, is or shall be a source of payment of the City’s obligations hereunder. Page 262 of 389