04-28-2004 Council Agenda - Laserfiche WebLink

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Date and subject to the provisions of the Note, the City shall pay, against the principal and interest then due on the Note, 95% of any Tax Increments received by the City during the preceding 6 months. All such payments shall first be applied to accrued and unpaid interest on the Note and then to principal of the Note. (5) Notwithstanding anything herein in the Note to the contrary, the City shall be under no obligation to apply or pay the Tax Increments to the payment of the Note any earlier than 30 days after it has received the Developer's statement required by paragraph (4) above. Any interest accruing on Tax Increments held by the City pending the Note Payment Dates or receipt of such statement from the Developer shall accrue to the benefit of the City. (6) The Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal of and interest on the Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the Note. (7) The City's obligation to make payments on the Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (B) this Agreement shall not have been rescinded pursuant to Section 4.2(b). (8) The Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit C. In the event of any conflict between the terms of the Note and the terms of this Section 3.2, the terms of the Note shall govern. The issuance of the Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the Note may require in connection therewith, are hereby authorized and approved by the City. Section 3.3. Developer's Fee and Legal and Administrative Expenses. As partial compensation for services provided by the City to facilitate development of the Project and for additional municipal services required by the Project during the term of this Agreement, the Developer shall pay to the City in immediately available funds on or before the closing of the Bonds the sum of $ . In addition, the Developer shall 226247 8 -25-