Rough Draft Agreement - PUD #2 - 4-30-2001

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(e) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet,in a timely manner,all requirements of all local, state,and federal laws and regulations which must be obtained or met before the Improvements may be constructed. (f) The Developer acknowledges that the TIF District is a"housing district" as defined in Section 469.174, Subdivision 11, of the TIF Act and, as such, is subject to the limitations provided in Minnesota Statutes, Section 469.174, Subdivision 11 and Section 469.1761, Subdivision 3 (together, the "Restrictions"). The Developer covenants that it will, with respect to the Improvements, observe and comply, and that it will cause the require any of its permitted successors and assigns to observe and comply with such Restrictions. In particular, and without limitation, the Developer covenants that at all times prior to the expiration of the Term the use of the property shall continue to qualify as a "housing district" under the TIF Act; specifically, that not less than 20% of the housing units shall be rented to tenants having annual income less than 50% of area median gross income. At least once annually,the Developer or Owner agrees to provide evidence satisfactory to the City of Orono of compliance with the applicable income limitation, including without limitation the total number of rental units during any reporting period and income verifications. (g) The Developer acknowledges that the "deferred improvement costs" shall be in addition to the requirements of the "TIF" financing. Such costs as identified in Section above shall be deferred and no payment shall be made to the City of Orono by the Owner if the housing remains in ownership of the"non-profit operator" and the housing be limited to senior rental units for persons aged 62 and older. At such time that either condition no longer exists, the deferred amounts plus 5% per annum interest compounded annually shall be immediately due and payable in full. (h) It is intended and agreed that the covenants provided in this Section shall remain in effect throughout the Terms and shall be covenants running with the land not the owner or developer. 17. City Representations and Covenants: The City makes the following representations as the basis for the undertaking on its part here in contained: (a) The City is authorized by law to enter into this Agreement and to carry out its obligations hereunder. (b) The City will,in a timely manner,subject to all notification requirements,review and act upon all submittals and application of the Developer and will cooperate with the effort of the Developer to secure the granting of any permit, license, or other approval required to construct and operate the Improvements; provided, however, that nothing contained in this subparagraph shall be construed to limit in any way the reasonable and legitimate exercise of the City's discretion in considering any submittal or application. Page 8of14