05.01 - Req for Tax Abatement-Oppidan, Public Hearing

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� TAX ABATEMENT AGREEMENT THIS TAX ABATEMENT AGREEMENT ( "Agreement "), made as of the _ day of October, 2009, by and among the City of Pequot Lakes, Minnesota (the "City "), a municipal corporation and political subdivision of the State of Minnesota, and Oppidan, Incorporated, a Minnesota corporation (the "Developer "), WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, the City has established a Tax Abatement Program; and WHEREAS, the City believes that the development and construction of a certain Project (as defined herein), and fulfillment of this Agreement are vital and are in the best interests of the City, will result in preservation and enhancement of the tax base, provide employment opportunities and are in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section 116J.993 through 116J.995, apply to this Agreement; and WHEREAS, the City has adopted criteria for awarding business subsidies that comply `., with the Business Subsidy Law, after public hearings for which notice was published; and WHEREAS, the Council has approved this Agreement as a subsidy agreement under the Business Subsidy Law. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Abatement Note means the Tax Abatement Revenue Note (Grocery Store Project) to be executed by the City and delivered to the Developer pursuant to Article III hereof, a copy of which is attached hereto as Exhibit B; and Affiliate means any Person directly or indirectly controlling or controlled by or under direct or indirect common control with a Person and any purchaser of all or substantially all of the assets of such Person. For this purpose, "control" means the power to direct management and policies, directly or indirectly, whether through Developerhip of voting securities, by `.. contract or otherwise, and the terms "controlling" and "controlled" have correlative meanings; 2410553v3