2007-02-07 WS - Laserfiche WebLink

Home Browse Search

Increments"). Such percentage of Development Property Tax Increments shall be determined at the time such respective Note is issued. On each respective Note Payment Date and subject to the provisions of the respective Note, the City shall pay against the principal and interest outstanding on the respective Note the percentage of Pledged Development Property Tax Increments received by the City during the preceding 6 months. All such payments shall be applied first to accrued interest and then to reduce the principal amount of the respective Note. (5) The respective Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Pledge Development Property Tax Increments shall be used to pay the principal and interest on the respective Note. If, on any respective Note Payment Date, the Pledged Development Property Tax Increments for the payment of the accrued and unpaid interest on the respective Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future respective Note Payment Date there are Pledged Development Property Tax Increments in excess of the amounts needed to pay the accrued interest thereon then due on the respective Note. (6) The City's obligation to make payments on the respective Note on any respective Note Payment Date or any date thereafter shall be conditioned upon the requirement that (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (B) this Agreement shall not have been rescinded pursuant to Section 5.2. (7) The respective Note shall be governed by and payable pursuant to the additional terms thereof. In the event of any conflict between the terms of the respective Note and the terms of this Section 4.2, the terms of the respective Note shall govern. The issuance of the respective Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the respective Note may require in connection therewith, are hereby authorized and approved by the City. Section 4.3. Use of Development Property Tax Increments. The City shall be free to use the Development Property Tax Increments, other than those to which the Developer is entitled pursuant to the provisions of Section 4.2 hereof, for any purpose for which the Development Property Tax Increments may lawfully be used pursuant to applicable provisions of Minnesota law. ARTICLE V CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 5.1. Construction of Minimum Improvements. The Developer agrees that it will cause the Minimum Improvements on the Development Property to be constructed substantially in conformance with the approved Construction Plans. The Developer agrees that the scope and scale of the Minimum Improvements to be constructed shall not be significantly less than the scope and scale of the Minimum Improvements as detailed and outlined in the Construction Plans. 16