Agenda - Council - 07/14/2026 - Laserfiche WebLink

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ARTICLE 3 UNDERTAKINGS BY DEVELOPER AND CITY 3.1 Development Property, Proiect Costs, and Legal and Administrative Expenses. (1) The parties agree that the acquisition of the Development Property are essential to the successful completion of the Project. The costs of the acquisition of the Development Property and the construction of the Project shall be paid by the Developer. The City shall reimburse the Developer for the lesser of (a) $2,350,000, or (b) the actual costs of the acquisition of the Development Property and the construction of the Project actually incurred and paid by the Developer (the "Reimbursement Amount"), as further provided in Section 3.3 hereof (2) The Developer has deposited $10,000 with the City to pay Legal and Administrative Expenses. If the City determines the deposit to be inadequate, the Developer shall provide additional funds in the amount determined by the City to be escrowed. 3.2 Limitations on Undertaking of the City. Notwithstanding the provisions of Section 3.1(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(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 in accordance with the provisions of this Agreement. 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 and the construction of the Project 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 (i) a certificate of occupancy has been issued by the City for the Project; (ii) the Developer has demonstrated to the reasonable satisfaction of the City that it is in compliance with Section 3.7 of this Agreement; (iii) the Developer has demonstrated in writing to the reasonable satisfaction of the City that the construction of the Project is complete and the costs of the acquisition of the Development Property and the construction of the Project have been incurred, and (iv) the Developer has submitted paid invoices for the costs of construction of the Project and a title company 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 unpaid principal of the TIF Note shall bear simple non -compounding interest from the date of issuance of the TIF Note, at 6.25% 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) The payment dates of the TIF Note shall be the Note Payment Dates. On each Note Payment Date and subject to the provisions of the TIF Note, the City shall pay, against the principal 6 300384045v3