01-12-2005 Council Agenda - Laserfiche WebLink

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(d) With respect to Phase II of the Development Property, after the City's receipt of the TIF District's last increment payment to the City in February 2017, but prior to the decertification of the TIF District, the City agrees to refund to the Developer the actual amount of Tax Increment deficiency payments received by City for the year 2006, without interest, but only if and to the extent that the entire Development Project has a positive cash balance. In no event shall the City be obligated to make any reimbursement to Developer in an amount that exceeds the tax increment deficiency received by the City for the year 2006. (e) With respect to Phase I or Phase II Development Property, the Developer shall as additional security, furnish the City with a irrevocable letter of credit in an approved format in an amount of $31,000.00 to further guaranty payment of any tax increment deficiency with respect to either the Phase I or Phase II Development Property. Said surety shall be immediately available for the City's use upon any failure of the Developer to make the tax increment deficiency payment in the time frame set forth above. In the event of any use of such surety by the City the Developer shall immediately reestablish an irrevocable letter of credit in an amount of $31,000.00. Said surety must remain in effect through December 31, 2008, at which time it shall expire, subject to Section 3.2.4 as provided for in this amendment. 8. Article X of the Original Development Agreement shall be amended to read as follows: Section 10.1 Events of Default Defined. The provisions of Section 10.1 and subparts (a), (b), (c), (d), (e), (f), and (g) are and shall remain in full force and effect. In addition, the following provision shall apply. (h) Failure by the Developer to observe or perform any covenant, condition, obligation or agreement to be performed under this Amendment to Development Agreement, including, but not limited to, Developer's obligation to meet all conditions precedent to the conveyance of the Phase II property on or before March 15, 2005. Section 10.2 Remedies on Default. The provisions of Section 10.2 and subparts (a), (b), and (c) are and shall remain in full force and effect. In addition, the following provisions shall apply. (d) The City may attempt to cure or engage third parties to attempt to cure any default. In such event the City can notify the