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(b) The Developer understands and acknowledges that the City makes no representations or warranties as to the amount of the Abatement or whether the Abatement will be in the amounts estimated as of the date of this Agreement. The amount of the Abatement may vary depending on the market value of the Additional Improvements, tax rates, changes in the property tax law, and other factors. Any estimates of the Abatement amount prepared by the City's financial advisor are solely for the benefit of the City, and Developer is not entitled to rely on such estimates. 3. Business Subsidy Act Provisions. For the purposes of the Business Subsidy Act: (a) The subsidy provided to the Developer by the City consists of the Abatement, which payments represent a forgivable loan that is repayable by the Developer in accordance with this Agreement. No assistance under this Agreement will be paid with tax increments. The City acknowledges that Developer has satisfied all job and wage requirements imposed under the TIF Contract. (b) The public purposes of the subsidy are to promote development of a manufacturing facility in the City, retain and increase jobs in the City and the State, and increase the tax base of the City and the State. (c) The goals for the subsidy are: to secure development of the Additional Improvements on the Property in accordance with Section 1 hereof; to maintain such improvements as a manufacturing facility for at least five years as described in clause (f) below; and to retain and create the jobs and wage levels described in Section 4 hereof. (d) If the goals described in clause (c) are not met, the Developer must make the payments to the City described in Section 5. (e) The subsidy is needed to induce Developer to expand its business in the City rather than relocate to a site elsewhere in Minnesota or another state. Without the Abatement assistance, Developer may be required to relocate a portion of its business elsewhere, resulting in loss of employment in the City (f) The Developer must continue operation of the Additional Improvements as a manufacturing facility for at least five years after the date of issuance of the certificate of completion, unless after a public hearing, the City Council approves Developer's request to move outside the City. (g) The Developer does not have a parent corporation. 4. Job and Wage Goals. Within two years after substantial completion of the Additional Improvements (the "Compliance Date "), the Developer shall (a) maintain at least _ full -time equivalent jobs existing on the Property as of the date of this Agreement, (b) cause to be created at least 1 new full -time equivalent job in addition to existing jobs, and (c) shall cause the wages for all employees on the Property (including those working in the existing facility and the • Additional Improvements) to be no less than $ hour, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Developer's continuing obligations under Sections 5 and 6. The City may, after a public hearing, S38- 187989v1 2 CE155 -7