Agenda - Economic Development Authority - 06/13/2019

Home

ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1. Development Property. The parties agree that the acquisition of the Development Property is essential to the successful completion of the Project. The costs of the Development Property and the Project shall be paid by the Developer. The City shall reimburse the Developer for $972,000 of the cost of acquisition of the Development Property actually incurred and paid by the Developer (the "Reimbursement Amount"), as further provided in Section 3.3 hereof. Section 3.2. Limitations on Undertaking of the City. Notwithstanding the provisions of Section 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse the Developer for the costs identified in Section 3.1, if the City, at the time or times such payment is to be made, is entitled under Section 4.2 to exercise any of the remedies set forth therein as a result of an Event of Default which has not been cured. Section 3.3. Reimbursement: TIF Note. The City shall reimburse the payments made by the Developer under Section 3.1 for costs of the acquisition of the Development Property through the issuance of the City's TIF Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (1) The TIF Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City and that the Developer has incurred and paid the costs of the acquisition of the Development Property, as described in and limited by Section 3.1 and shall have submitted a settlement statement or other evidence of payment of the costs of the Development Property in an amount not less than the Reimbursement Amount. (2) The principal amount of the TIF Note shall be payable solely from the Tax Increments. (3) On each Note Payment Date and subject to the provisions of the TIF Note and Section 3.5, the City shall pay, against the principal outstanding on the TIF Note, any Tax Increments received by the City during the preceding 6 months. All such payments shall be applied to reduce the principal of the TIF Note. (4) The TIF Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal of the TIF Note. (5) The City's obligation to make payments on the TIF Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirements that: (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (B) this Agreement shall not have been rescinded pursuant to Section 4.2. (6) The TIF Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the TIF Note 6 11750570v4