6B, Public Hearing Proposed TIF District Resolution 2010-081, -082 & -083

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pledged to the Note wilt be suf�cient to pay the principal of and interest on the Note. Any estimates of Tax Increment prepared by the City or its financial advisors in connection with tk►e TIF District ar this Agreement are for the benefit of the City, and are not inte�nded as representatians on which the DeveIoper nnay rely. Section 3.4. Business Subsid,y Act. The parties agree and understand that any assistance provided to the DeveIoper under this Agreernent is not a"business subsidy" under Minnesota Statutes, Section 116J.993, subd. 3 because the assistance is for housing. 5ection 3.5. Conveyance of Trian�;le Parcel. (a) Generally. The Developer will convey the Triangle Parcei to the City subject to the terms and conditions of this Section. (b) Purchase Price, Costs. The Developer wiil convey the Triangle Parcel to the City for a purchase price af $ i.00. At Closing (defined below}, Developer will pay any outstanding special assessments; costs of title evidence; one-hal� o� any closing fee, state deed t� (if any); and the recording fee for recording all doc�ments required to convey marketable title to the Triangle Parcel. Property taYes due and payab�e in the year of Ctosing will be prorated between Developer and City as of #he date af Closing. The City will pay the cost of any title insurance premium, and one-half of any cIosing %e. The parties will each be responsible for any othee costs they incur in connection with conveyance of the Triangle Parcel. {c) Title. Promptiy after execution of this Agree�nent, Developer shall furnish to the City a corr�mitment for an ALTA Owner's �'olicy of Title Insurance insuring title to the Triangle Pa:rcel, in the amount of $268,200 (w�ich the parties agree repr�sents a reasonabte estimate of the market value of he Triangle Parcel}. Within b0 days after :receiving such title commitment, t�e City may rnake written objec�ions to the status of title. Developee will have GO days after receipt of any objections to cure the objections. Devel�per will use commercially reasonable efforts to cure any objections within such 60 day period. If objections are not cured within the 60-day period, City tnay elect to eithar (i) terminate this Section of the Agreement, without affecting the remainder of the Agreemer�t; or (ii} waive t�e objections and proceeds to Clasing. (d} Envir�nmental maiters. Developer shall undectake, at its cost, a Phase I and, if necessary, a Phase II environmental anaIysis of the Triangle Parcel. Promptly upon receipt of the reports rasulting from consultants, De�eloper shall deliver to the City copies of all environm.ental reports related to the Triangle Parcel prepared for Developer. Developer will aIso cause the party or parties preparing such reports, upon request of the City and at City's cost, to deliver let�ers to the City a(lowing the City ta rely on such reports. Further, Developer grants to the City and its agents filie right to enter th.e TriangIe Parcel to undertake its awn inspections, tests, and investigations of the Triangle Parcel. Tf the City determines, through i�s investigation or from any environmentai report, that any underground tanks ar hazardous svbstances (as defined in paragraph (i) of this Section) are located on the Triangle �axcel, Developer shall at its cost, and prior ta Closing, remove any tanks and remo�e or remediate any hazardous substar�ces to a Minnesota Pollution Contirol Agency standard for non-residential land use. Notwithstanding anything ta the contrary herein, Developer shall not be obligated to pay more than $25,000 �o carry out such removal and remediation, and if such costs exceed that am.ount, the City rriay elect to either (i} terminate this S�ction of the Agreement wi�hout affecting the remaEnder of the Agreetx�ent, or (ii} waive the objection and proceed to CIosing. Iri addition, if Developer is required to incur any costs e�nder ihis paragraph, the City t�ill cooperate with Devetoper in seeking grants from State or other sources to assist in financing such costs, and will malce such grant proceeds available to Developer to the extent the City is successful in grant applications. 3�s99a�6 s.r� .�xzoo-io