10-08-2001 Council Packet - Laserfiche WebLink

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The disquunricalion of a project if (he fair market value ofits improvements which ore constructed for uses other than low and moderate income housing exceeds 20®/o of the total fair market value of the planned improvements in the development plan or agreement (Section 469.174. Subdivision 11). Compliance with some of these restrictions is'within the control of the City and compliance with some of these restrictions is within the control of the Developer and or Owner. The City of Orono aeknow ledges that the “deferred improvement costs” shall be in addition to the requirements of the “TIF Act” by an additional 79 sears. Such costs os identified in Section 15(c) above shall be deferred and no pavment shall be made to the City of Orono by the Owner if the conditions the housing remain in ow nership of the “non-profit operator” and the housing be limited to senior rental units lor persons aged 62 and older. At such time that said requirements ore no longer met. the deferred improvement costs plus interest necnied at the annual rale of 7®/o compounded annually shall be repaid immediatelN to the City of Orono. The City covenants not to take any actions, including without limitation any approval of the e.xpendilure by the City of increment from the TIF District not applied toward pa> ment of the i IF Note, which would violate tlie TIF Act, invalidate the TIF District in whole or in part or adversciv alfect the tax increment pavincnt obligations to the Developer under this .Agreement i»r the TIF Note. Nothing in this subsection shall diminish the Developer's obligations under this Agreement or create any liability of the Citv respecting an Event of Default. The City shall promptly give the IX*v eloper written notice and copy of an> lawsuit or similar proceeding, or any threat thereof, and of any communication from the Otfice of the State Auditor, the IXpartment of Rev enue. I lennepin County or other public official which questions the propriety or legality of the TIF District or the expenditure of its increment. Compliance. At ony time and from time to time the Developer may request that the City provide (he Developer a eertifieate certifying tlut that the temis and prov isions of this Agreement have been complied with and that this PUD Agreement is in full force and effect with respect to the development for the purpose of facilitating sale, mortgage, insurance or other matters. To the extent that there be anv bona fide defaults in such compliance, the Developer shall be afforded a reasonable time to bring the development into confomumce. and thereaficr the City shall be obligated to pn>vide such certificate. Page 12 of 17