01-23-2019 Council Packet - Laserfiche WebLink

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11237553v3 6 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1. Site Improvements and Legal and Administrative Expenses. (1) The parties agree that the installation of the Site Improvements are essential to the successful completion of the Project. The costs of the Site Improvements shall be paid by the Developer. The City shall reimburse the Developer for the lesser of (a) $150,000, or (b) the actual costs of the Site Improvements actually incurred and paid by the Developer (the "Reimbursement Amount") as further provided in Section 3.3. (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 Sections 3.1, the City shall have no obligation to the Developer under this Agreement to reimburse the Developer for the Reimbursement Amount, 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 costs identified in Section 3.1(1) 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 construction of the Site Improvements has been completed and that the Developer has incurred and paid all costs of construction of the Site Improvements, as described in and limited by Sect ion 3.1 and shall have submitted paid invoices for the costs of construction of the Site Improvements in an amount not less than the Reimbursement Amount. (2) The unpaid principal amount of the TIF Note shall bear simple non-compounding interest from the date of the TIF Note, at 5.50% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. Interest on the TIF Note accruing from its date of issuance to February 1, 2021 shall be added to the principal of the TIF Note. (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 foregoing sentence and the provisions of the TIF Note, the City shall pay, against the principal and interest outstanding on the TIF Note, the Tax Increments received by the City during the preceding six (6) months. All such payments shall be applied first to accrued interest and then to reduce the principal of the TIF Note. Notwithstanding the foregoing, the TIF Note shall terminate prior to the final payment date of February 1, 2028 when the payments of principal and interest on the TIF Note equal $190,615.