05.02 - Tax Increment Financing Project - Lonesome Cottage

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(3) The Developer agrees to (i) report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2008, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the City a penalty of$100 for each subsequent day until the report is filed up to a maximum of$1,000. (4) The Developer agrees that it shall cause the Operating Entity to continue operations within the City for at least five (5) years after the Benefit Date. (5) There may be other state or local government agencies providing financial assistance for the Project in addition to the City. (6) There is no parent corporation of the Operating Entity or the Developer. (7) The Developer certifies that neither it nor the Operating Entity appears on the Minnesota Department of Employment and Economic Development's list of recipients that have failed to meet the terms of a business subsidy agreement. (8) In addition to the jobs created as part of the Goals, the Developer shall cause the Operating Entity to retain 44 full-time equivalent jobs currently employed at its existing site. Section 3.4 Execution of Assessment Agreement. The Developer and the City shall execute an Assessment Agreement relating to the Development Property pursuant to the provisions of Minnesota Statutes, Section 469.177, Subdivision 8, specifying the Assessor's Minimum Market Value for the Development Property for calculation of real property taxes. Specifically, the Developer shall agree to a market value for the Development Property and the Minimum Improvements in an amount of $1,369,600 as of January 2, 2008 and as further provided in the Assessment Agreement (such minimum market value is herein referred to as the "Assessor's Minimum Market Value"). Nothing in the Assessment Agreement or this Agreement limits the discretion of the County Assessor to assign a market value to the property in excess of such Assessor's Minimum Market Value nor prohibits the Developer from seeking, through the exercise of legal or administrative remedies, a reduction in such market value for property tax purposes; provided however, the Developer shall not seek a reduction of such market value below the Assessor's Minimum Market Value for any year so long as the Assessment Agreement remains in effect for that year. The Assessment Agreement and this Agreement shall remain in effect until the earlier of(i) December 31, 2017; (ii) the date on which the Tax Increment District expires or is otherwise terminated or (iii) the date on which the Developer has repaid the Promissory Note and all accrued interest thereon to date of payment (the "Assessment Agreement Termination Date"). The Assessment Agreement shall be certified by the County Assessor as provided in Minnesota Statutes, Section 469.177, Subdivision 8, upon a finding by the County Assessor that the Assessor's Minimum Market Value represents a 2055837v2 9