Agenda - Council - 08/24/2021 - Laserfiche WebLink

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ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1. Acquisition of Development Property and Legal and Administrative Expenses . (1) The parties agree that the acquisition of the Development Property is essential to the successful completion of the Project. The costs of acquiring the Development Property shall be paid by the Owner. The City shall pay the Developer $1,172,000 for the costs of the Owner's acquisition of the Development Property (the "TIF Amount"), as further provided in Section 3.3 hereof. (2) The Developer shall pay the Legal and Administrative Expenses incurred by the City. 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 pay 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 beyond any notice and/or cure period. Section 3.3. Payment: TIF Note. The City shall pay the Developer under Section 3.1 for costs of the Owner's 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 that the Developer has substantially completed Phase 1 of the Project (which satisfaction shall be deemed evidenced by the issuance of a certificate of occupancy therefor or other written notice of satisfaction of the City) and 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 signed settlement statement or other evidence of payment of the costs of acquisition of the Development Property in an amount not less than the TIF Amount. (2) The unpaid principal of the TIF Note shall bear simple non -compounding interest from the date of issuance of the TIF Note, at 4.50% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. (3) The principal amount of the TIF Note and the interest thereon shall be payable solely from the Tax Increments. (4) 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 and interest outstanding on the TIF Note, any Tax Increments received by the City during the preceding 6 months. All such payments shall be applied first to accrued interest and then to reduce the principal of the TIF Note. 7 13580713v3