Development Agreement relating to Orono Woods Apartments 4-30-01

Home Browse Search

EXHIBIT C FORM OF TIF NOTE No. R- 1 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN ORONO HOUSING AND REDEVELOPMENT AUTHORITY TAX INCREMENT REVENUE NOTE OF 2001 [1] The Orono Housing and Redevelopment Authority(the "HRA"), located in the City of Orono, Hennepin County, Minnesota, hereby acknowledges itself to be indebted and, for value received, hereby promises to pay to Dunbar Development Corporation, a Minnesota limited liability company, or its registered assigns (the "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided, the Principal Amount of this Note (as defined in paragraph [2] hereof) and to pay interest on the unpaid portions of the Principal Amount of this Note at the rate of interest of 7.00%per annum. Interest shall accrue on the Principal Amount from , 2000, and shall be computed on the basis of a 360-day year consisting of 12 30-day months. This Note is the "TIF Note" described and defined in that certain Development Agreement, dated as of June , 2001 (as the same may be amended from time to time, the "Development Agreement"), among the HRA, the City of Orono, Minnesota, Dunbar Development Corporation and Orono Senior Housing, LLC, a Minnesota limited liability company, as the initial Developer under the Development Agreement. Each capitalized term which is used but not otherwise defined in this Note shall have the meaning given to that term in the Development Agreement. [2] The Principal Amount of this Note shall be $900,000. [3] Subject to the terms hereof, amounts due on this Note shall be payable on each February 1 and August 1, commencing February 1, 2004, and continuing through February 1, 2024 (the "Payment Dates"). All amounts of accrued interest on this Note which are not paid in full on any Payment Date shall also accrue additional interest from the date of such non-payment (the "Compound Interest") until paid at the rate of interest of 7.00%per annum. [4] On each Payment Date (or, if not a business day of the HRA, the first business day thereafter)the HRA shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the HRA preceding such Payment Date an amount equal to the lesser of(1) the Available Tax Increments (which generally consist of 90% of the tax increments from the HRA's Tax Increment Financing District No. 1-1)received by the HRA within the 6- month period preceding said Payment Date and (2) the sum of(i)the Compound Interest, (ii) the accrued and unpaid interest on the Principal Amount, and (iii) the