05.02 - Tax Increment Financing Project - Lonesome Cottage

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reasonable estimate based upon the plans and specifications for the Project to be constructed on the Development Property and the market value previously assigned to the Development Property. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the Assessment Agreement relating to the Development Property shall be filed for record in the office of the county recorder or registrar of titles of the County prior to any lien on the Development Property other than the Acquisition Mortgage, but including any Construction Mortgage, and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the Development Property, whether voluntary or involuntary, and such Assessment Agreement relating to the Development Property shall be binding and enforceable in its entirety against any such subsequent purchaser or encumbrancer, including the holder of any Construction Mortgage. Section 3.5 Real Property Taxes. The Developer shall pay all real property taxes payable with respect to all parts of the Development Property acquired and owned by it and pursuant to the provisions of the Assessment Agreement and any other statutory or contractual duty that shall accrue subsequent to the date of its acquisition of title to the Development Property (or part thereof) and until the Developers' obligations have been assumed by any other person pursuant to the provisions of this Agreement or title to the property is vested in another person. The Developer agrees that for tax assessments prior to the Termination Date: (1) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the ad valorem property taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Development Property, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (2) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings with respect to the Development Property; provided, however, "tax statute"does not include any local ordinance or resolution levying a tax; (3) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.181, or any other State or federal law, of the ad valorem property taxation of the Development Property between the date of execution of this Agreement and the Termination Date. Section 3.6 Upfront Fees. The Developer has deposited $10,000 with the City to pay actual out of pocket Legal and Administrative Expenses. If the City determines the deposit to be inadequate, the Developer shall provide additional funds to be escrowed. 2055837v2 10