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

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ARTICLE VI Tax Increment; Taxes Section G.l. Ri�ht to CoIlect Delinquent T�es. The Developer acknowledges that the City is praviding substantial aid and assistance in furtherance of the redevelopment through issuance of the Notc. The DeveIoper understands tha# the Tax Incraments pledged #o payment on ti�e Note are derived frona real estate taxes on the Min.iznum Improvements, which taxes rnust be promptly and timely paid. To that end, the Developer agrees for itself, its successors and assigr►s, in addition to the obligation pursuant to statute to pay real estate taaces, that it is also obligated by reason of this Agreement, through the Maturity Date, to pay before deIinquency aIl real estate taxes assessed against the Develop�nent Property and the Minimum Improvements. The Developer acknowiedges that this obligation creates a contract�al right on behalf of the City to sue the Developer ar its successars and assigns to collect delinqueni real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county aud�tor. In any such suit, the City shall alsa be entitled to recover its costs, expenses and reasonable attorney fees. Nothing in this paragraph shall prevent Developer from cantesting ihe amount of real estate taxes (whet�er because of valuation, classification, or otherwise) in accordance with Minnesota law. Section 6.2. Reduction of Taxes. {a) Developer agrees thai through the Maturity Data it will not causa a reductian in the real property t�es paid in respect of the Develo�ment Property thi'ough: (A) willful destruction of the Development Property or any part thereof; (B) willful refusai to reconstruct damaged or destroy�d properiy frorn insurance proceeds available to Developer for such purposes; (C) apply for a defercal of property tax on the Development Property pursuant to any Iavv; or (D) convey or transfer or allow c�nveyance or transfer oi the Development Property to any entity that is exempt from payment of real property taxes under State law {o#her than any partion thereoi dedicated or conveyed �a the City in accordance with the plat of the Devaloptx�ent Property}. (b} The De�eloper nnay use any ad�ninistrative or legal process provided under State 1aw to seek reduction of market value af the Development Property and Minitnuzn Improve�nents thereon for ad valore�x� t� purposes, providcci that {i) promptly upan filin.g any petition or ciairn with any Tax Official, the Developer shall provide written natice of such action to the City; aiad (ii) if Developer files such a petition or claim, �he City wilt withhold payment of any Available Ta�c Incre�nent (without in#erest} that is attributable to tax-payable year that is the subject af the petition or claim until the petition or claim is fully resolved such that the County has finally determined the amount of property taxes payable with respect to the D�velopment Property foc that year. {The remainder o�this page is intention.ally Ieft blank.) 378990v6 SJB AR200-EO 1']