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hearings and adopts the necessary spending plans to <br />allow the City to fund the City Loan with tax increments <br />the City has collected from its Tax Increment District <br />No. 1, the City and Developer must each execute the <br />City Loan Agreement and must each deliver an original, <br />executed City Loan Agreement to the other party, <br />Developer must execute the City Note and deliver the <br />City Note to the City and Developer must cause the <br />Guarantor to execute the Guaranty and deliver the <br />Guaranty to the City, all contemporaneously with the <br />HRA's conveyance of the Development Property to <br />Developer pursuant to the Purchase Agreement. In the <br />event of a conflict between the terms of the City Note <br />and the terms of this Development Agreement, the terms <br />of the City Note control. In the event of a conflict <br />between the terms of this Agreement and the terms of <br />the City Loan Agreement, the City Loan Agreement <br />controls. <br />Section 8.4 Fee in Lieu of Interest, Interest and <br />Default Interest. The City Note does not obligate <br />Developer to pay interest on the outstanding principal of <br />the City Loan prior to April 1, 2024 provided Developer <br />is not in default in the timely payment of any amounts <br />due under the City Note. In lieu of non - default interest <br />during that time period and as consideration for the <br />extension of credit, the City will charge Developer and <br />Developer agrees to pay a one -time fee of $120,000.00. <br />As set forth in the City Loan Agreement, the City will be <br />deemed to have made a $120,000.00 "Advance," to itself <br />in full payment of this fee contemporaneously with the <br />first "Advance" the City makes pursuant to the terms of <br />the City Loan Agreement. If Developer has not repaid <br />the City Loan, in full, before April 1, 2024, simple <br />interest will accrue on the unpaid principal balance of <br />the City Note from April 1, 2024 until the City Note is <br />paid in full at the rate of 6.25% per annum unless the <br />rate is increased pursuant to the following sentence as a <br />result of Developer's default. If, at any time, Developer <br />defaults in the timely payment of any amounts due under <br />the City Note, the City gives Developer notice of the <br />default and Developer does not cure the default within <br />ten (10) business days of the effective date of the City's <br />notice, interest shall accrue on the outstanding principal <br />balance of the City Note from the date of the default <br />through the date Developer cures all defaults under the <br />City Note at the rate of twelve percent (12 %) per annum <br />15 <br />