CCP 06-15-1992 - Laserfiche WebLink

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, ~ ARTICLE V Tax Increment Section 5.1. Real Propertv Taxes. ( a) The Developer shall pay when due all real property taxes payable with respect to the Development Property. (b) The Developer ag rees that prior to the Termination Date it will not take any of the following actions to the extent that such actions would result in a reduction in the tax increment generated b)' the Minimum Improvements below the amount of $78,000 in any year: ( 1 ) seek administrative review or judicial review of the applicability of any real estate tax statute determined by any Tax Official to be applicable to the Development Property or Minimum Improvements or raise the inapplicability of any such real estate tax statute as a defense in any proceedings, including delinquent tax proceedings; and (2 ) seek administrative review or judicial review of the constitutionality of any real estate tax statute determined by any Tax Official to be applicable to the Development Property or Minimum Improvements or raise the uncon- stitutionality of any such real estate tax statute as a defense in any proceedings, including delinquent tax proceedings. (c) The Developer further agrees that it will not, prior to . termination date, request the County Assessor to assess the Development Property and the Minimum Improvements on any basis other than as Class 4c residential real estate under Minnesota Statutes, Section 273.13, Subd. 25. Section 5.2. Assessment A~reement. The Developer and the City shall execute the Assessment Agreement, substantially in the form of the Assessment Agreement contained in Schedule B of this Agreement. The Assessment Agreement shall provide that the Assessed Market Value of the Minimum Improvements upon completion of the Minimum Improvements shall be equal to $1,458,153. Section 5.3. Tax Increment. As the tax increment is collected each year, starting in 1992, ten percent (10%) shall be paid to the City to reimburse it for expenses of Administering the Development Program; and ninety percent (90%) shall be paid to the Developer to reimburse it for land acquisitions and site improve- ments up to the amount of $905,000. This $905,000 shall earn interest at the rate of nine percent (9") per annum on the unpaid amount or the interest rate payable on the Revenue Bonds, as noted in Section 6,3 of the Agreement, whichever interest rate is lower. The payment of interest is only payable from the 90" of tax increment available to the Developer or assignee. Payments shall be applied first to interest due and the balance for principal. No tax increment shall be collected or paid after December 30, . 20n3, the termination date. 12