02-23-2005 Council Agenda - Laserfiche WebLink

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substantially complete by April 30, 2005. The buildings on all of the remaining Parcels (including Parcel 5) must be substantially complete by December 31, 2005. • Section 6.3 obligates the EDA to install certain public improvements and requires the Developer to acknowledge that the improvements will be paid with special assessments. • Section 7 obligates the Developer to execute an Assessment Agreement with respect to each Parcel establishing minimum market values for the Development Property for real estate tax purposes. The minimum market values are as follows: Parcel Minimum Market Values 1 32,470,000 as ofJanuary 2, 2005 2 3540,000 as ofJanuary 2, 2005 3 3936,000 as ofJanuary 2, 2005 4 3700,000 as ofJanuary 2, 2006 5 31,500,000 as ofJanuary 2, 2006 Section 8.2 obligates the Developer to pay the EDA an amount equal to the amount of any "Tax Increment Shortfalls." "Tax Increment Shortfalls" are generally defined as the difference between the amount of tax increment the EDA expects to receive and the amount of tax increments the EDA actually receives with respect to each of the real estate tax payments due on May 15 and October 15 throughout the duration of the TIF District. The Developer's obligation to pay for a Tax Increment Shortfall will be offset by any tax increment surplus for the townhome project subject to certain limitations that benefit the EDA. The Shortfall is applied as to each individual parcel and the owner of that parcel will be responsible for the Shortfall. • Section 8.3 obligates the Developer to provide the EDA with a personal guaranty from George Sherman to secure the Developer's obligations under Section 8.2. • There is no cap on the amount of the Tax Increment Shortfall the Developer is obligated to pay to the EDA. • Section 8.5 obligates the EDA to use any excess tax increments that the EDA has on hand immediately prior to the termination of the Tax Increment District to reimburse the Developer for Tax Increment Shortfall payments the Developer has made during the term of the Agreement. • Sections 3.6 and 8.7 obligate the EDA to apply any excess tax increments received with respect to the commercial property in a given year to satisfy any Tax Increment Shortfall relating to the townhome site before the EDA may require the Developer to pay the Tax Increment Shortfall relating to the townhome property. Converseiv, these sections require the EDA to apply any excess tax increments from the townhome property to cover any tax increment shortfall on the commercial property.