03-14-2012 Council Agenda - Laserfiche WebLink

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(2) The unpaid principal amount of the Phase III Shortfall Note shall bear interest from the date of issuance of the Phase III Shortfall Note, at 4.00% per annum, compounding annually. 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 Phase III Shortfall Note and the interest thereon shall be payable solely from the Available Tax Increments and any amounts remaining in the Phase 111 Deposit Account upon completion of the Phase III Public Improvements and the payment of all costs thereof. (4) Any amounts remaining in the Phase III Deposit Account upon completion of the Phase III Public Improvements and the payment of all costs thereof shall be applied to the payment of the outstanding principal of and accrued interest or the Phase 111 Shortfall Note. (5) The Developer acknowledges that the payment of the Phase III Shortfall Note is subordinate to the payment of the Bonds. If the Available Tax Increments received by the City by the Agreement Termination Date plus amounts paid from the Phase III Deposit Account in accordance with Section 3.2(4) have failed to satisfy the Phase III Shortfall Note in full, any remaining amounts due on the Phase III Shortfall Note shall be forgiven and waived by the Developer, it being acknowledged that the Phase III Shortfall Note is payable only out of Available Tax Increments and amounts paid from the Phase III Deposit Account in accordance with Section 32(4) and when the Available Tax Increments cease, so does the City's obligation to pay the Phase ITT Shortfall Note. (6) On each Payment Date and subject to the provisions of the Phase 111 Shortfall Note, the City shall pay, against the principal and interest outstanding on the Phase 111 Shortfall Note, Available 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 Phase III Shortfall Note. (7) The Phase III Shortfall Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Available Tax Increments shall be used to pay the principal and interest on the Phase 11I Shortfall Note. If, on any Payment Date, the Available Tax Increments for the payment of the accrued and unpaid interest on the Phase III Shortfall Note are insufficient for such purposes, the difference shall he carried forward and shall be paid if and to the extent that on a future Payment Date there are Available Tax Increments in excess of the amounts needed to pay the accrued interest then due on the Phase III Shortfall Note. (8) The City's obligation to make payments on the Phase III Shortfall Note on any Payment Date or any date thereafter shall be conditioned upon the requirement that there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement. (9) The Phase III Shortfall Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit E. In the event of any conflict between the terms of the Phase III Shortfall Note and the terms of this Section 3.2, the terms of the Phase 111 Shortfall Note shall govern. The issuance of the Phase III Shortfall Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond 2139I97v8 8