Agenda - Council - 09/27/2011 - Special

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Section 6.3 Taxes and Liabilities. Pay, when due, all taxes, assessments and other liabilities except as contested in good faith and by appropriate proceedings. Section 6.4 Real Estate Taxes and Insurance Premiums. Promptly advise the HRA of the non - payment when due of any real estate taxes or installments of special assessments payable with respect to the Project. Section 6.5 Construction of Minimum Improvements. Commence construction of the Minimum Improvements on or before June 30, 2012. Complete the Minimum Improvements on or before the Completion Date in a good and workmanlike manner, in accordance with the Final Construction Plans and in compliance with applicable laws, rules, regulations, building codes, and ordinances. Section 6.6 Reimbursement of Expenses. Promptly reimburse the HRA for any and all expenses of collection of any loan made or to be made hereunder, including reasonable attorneys' fees, whether or not suit is commenced. Section 6.7 Financial Information Regarding Guarantors; Substitute Guarantors. Until the Notes are paid in full, the Developer shall: (a) Corporate Guarantor. Cause the Corporate Guarantor to provide the HRA with a reviewed financial statement for the Corporate Guarantor for the immediately preceding calendar year prepared by a certified public account (who may be an employee of the Corporate Guarantor) in accordance with generally accepted accounting principles, consistently applied on or before May 15 of each calendar year. If, in any year, the Corporate Guarantor's net worth is less than $2,200,000.00, the Developer must provide a replacement guaranty from another individual or entity reasonably acceptable to the HRA and having a net worth of not less than $2,200,000.00. If such replacement guaranty is provided, the person or entity providing the replacement guaranty shall be the "Corporate Guarantor" for purposes of this Agreement. (b) Personal Guarantor. Cause the Personal Guarantor to provide the HRA with a personal financial statement for the Personal Guarantor for the immediately preceding calendar year certified by the Personal Guarantor and a copy of the Personal Guarantor's filed federal tax return. If, in any year, the Personal Guarantor's liquid net worth is less than $1,000,000.00, the Developer must provide a replacement guaranty from another individual or entity reasonably acceptable to the HRA and having a liquid net worth of not less than $1,000,000.00. If such replacement guaranty is provided, the person or entity providing the replacement guaranty shall be the "Personal Guarantor" for purposes of this Agreement. Section 6.8 CPA - Prepared Financial Statements. On or before April 1, 2015 and on or before each April 1 thereafter until April 1, 2025, the Developer must provide the HRA with a statement from a certified public accountant setting forth the "Net Cash Flow," "Net Operating Expenses" and "Operating Expenses," as defined in the Development Agreement, for the immediately preceding calendar year and with such back -up documentation regarding income, expenses and debt service as the HRA may reasonably request to confirm the certified 2695614v12 A -12