5.6. & 5.7. SR 06-17-1996 - Laserfiche WebLink

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EXHIBIT A TAX INCREMENT REVENUE NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER, MINNESOTA TAX INCREMENT REVENUE NOTE The City of Elk River, Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay to Gerald Eugene McChesney and JoAnne McChesney or its assigns (the "Owner"), an amount equal to Thirty-Five Thousand and No/100 Dollars ($35,000.00) as more fully described in the Contract for Private Development by and between the City of Elk River, the Economic Development Authority for the City of Elk River, and Gerald Eugene McChesney and JoAnne McChesney (the "Development Agreement"), in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The unpaid principal on this Note shall be payable on July 15, 1998 and on each December 15 and July 15 thereafter, or within ten (10) days of receipt by City of the tax settlement from Sherburne County, whichever comes later, to and including December 15, 2003 (the "Payment Dates"). On each Payment Date the City shall pay by check or draft mailed to the Owner of this Note an amount equal to the lesser of (1) the principal then due on this Note; or (2) the Tax Increment received and retained by the City pursuant to the City of Elk River Tax Increment Financing Plan for Tax Increment Financing District No. 15. The amounts due hereon shall be payable solely from Tax Increments paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from time to time. This Note shall terminate and be of no further force and effect following the last Payment Date del'reed above, on any date upon which the City shall have terminated the Development Agreement, or on the date that the principal payable hereunder shall have been paid in full, whichever occurs earliest. The City makes no representations or covenants, express or implied, that the Tax Increment received by the City will be sufficient to pay, in whole or in part, the amount due and payable hereunder. The City's payment obligations hereunder shall be further conditioned on the fact that there shall not have occurred and be continuing on the Payment Date a Default under the terms of the Development Agreement, but such unpaid amounts shall become payable if said Event of Default shall have been cured. If, pursuant to the occurrence of a Default under the Development Agreement, the City elects to terminate the Development Agreement, the City shall have no further debt or obligation under this Note whatsoever.