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part, the insufficiency in pledged revenues. 1.05. In order to induce the Developer to construct an expansion of his manufacturing facility on the Property and to help remedy the insufficiency in Available Tax Increment pledged to Note 2, the City has determined to grant a property tax abatement for the City's share of the property taxes on the Property after termination of the TIF District, pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Abatement Act"), subject to the terms and conditions of this resolution. Section 2. Revision of Note 1. 2.01. Notwithstanding anything to the contrary in Resolution No. 95-20 or the terms of Note 1, the City will pay the outstanding principal and accrued interest on Note 1 to Rehbein, which payment will be made from the total Tax Increment generated from the Property as of the date of payment. The payment will be made on November 15, 2000. 2.02. Upon payment of Note 1 in full, the City will execute and deliver to Developer a release, in recordable form, of the Assessment Agreement between the City and the Developer dated October 24, 1995. Section 3. Revision of Note 2. 3.01. Upon making the final payment on Note 1 as described in Section 2 hereof: the City will deliver to the Developer an Amended and Restated $114,051.19 Tax Increment Revenue Note, Series 1995B ("Amended Note 2") in substantially the form attached hereto as Exhibit A In exchange for Amended Note 2, Developer shall deliver to the City the original Note 2 for cancellation, as well as an investment letter from Developer in a form acceptable to the City. 3.02. Notwithstanding anything to the contrary in Resolution No. 95-21 or the terms of original Note 2, Amended Note 2 is payable solely from and in the amount of "Available Tax Increment," which means (a) on the November 15, 2000 Payment Date, 100 percent of the Tax Increment generated from the Property that was received by the it City as of that Payment Date and not applied to any prior payment of Note 1 or original Note 2, and (b) on each Payment Date thereafter, 95 percent of the Tax Increment generated from the Property that was received by the City as of each Payment Date and not applied to any prior payment of Note 1, original Note 2 or Amended Note 2. 3.03. The payment due on November 15, 2000 on Amended Note 2 will be further adjusted to deduct the amount of $24,165.09, which amount the City paid to Developer toward original Note 2 prior to the date of this resolution. 3.04. The City will decertify the TIF District as soon as reasonably practicable after the earliest of (a) the date Amended Note 2 is paid in full or defeased, or (b) December 31,2005. The City acknowledges that any payment under Amended Note 2 on February 1, 2006 is payable from Available Tax Increment received in calendar year 2005, and the intent of this Section is to provide that the Property will not be included in the TIF District for property taxes payable in 2006. Section 4. Property Tax Abatement Findings. SJB-184817v3 (""I'R 1 ~ ~_ '7 ?