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WHEREAS, the 1998 real estate tax year is the flu'st year Developer is eligible for a <br />reimbursement payment, based on the January 2, 1997, value of the Project; <br /> <br /> NOW, THEREFORE, BE IT RESOLVED that the City, the EDA and the Developer agree on <br />the following terms and conditions for reimbursement of the Land Write Down: <br /> <br />The EDA hereby pledges the Tax Increment it receives from the TIF District to the City <br />of Elk River to enable the City to reimburse Developer for the Land Write Down <br />identified in the TIF Plan. <br /> <br />Payments shall be made by the City to Developer, in a total amount not to exceed the <br />Land Write Down, pursuant to the terms of the Note attached as Exhibit A to this <br />Agreement (the "Note"). <br /> <br />The sole source of funds for payment of the City's obligations under the Note shall be the <br />tax increment generated by the TIF District. If taxes are not paid, or taxes paid are not <br />sufficient to generate tax increment, no payment on the Note shall be due from the City. <br /> <br />The annual tax increment payment will be determined by the City's Assistant City <br />Administrator, and will take into consideration the original net tax capacity of the <br />Development Site prior to the construction of the Project. <br /> <br />If Developer fails to make real estate tax payments prior to the date when said taxes are <br />due to Sherburne County, an Event of Default under this Agreement shall exist. No <br />payments shall be made to Developer under the terms of the Note if an Event of Default <br />occurs, and payments shall not be resumed until the Default is remedied. The Default <br />shall be deemed remedied upon evidence of receipt of payment in full for real estate taxes <br />from Sherburne County. <br /> <br />After reimbursing Developer for the principal sum of the Land Write Down, no further <br />payments shall be due under this Agreement and the City shall request that Sherburne <br />County decertify the TIF District. <br /> <br />Developer shall complete construction of the Project by December 31, 1996. Failure to <br />complete construction of the Project by this date shall be an Event of Default under this <br />Agreement and City and EDA shall have the right to terminate this Agreement and their <br />obligations h&reunder. <br /> <br />Developer shall, prior to January 2, 1997, provide City with evidence acceptable to City <br />of Developer's expenditures for Development Site acquisition costs. <br /> <br />Pursuant to Minnesota Statutes, Section 116J.991, City and EDA have established, and <br />Developer has agreed, to the following Job Creation and Wage Level Goals: <br /> <br />Job Creation: <br />Wage Level: <br /> <br />12 new jobs <br /> <br />PXB 100445 2 <br /> <br /> <br />