08-13-2003 Council Agenda - Laserfiche WebLink

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ARTICLE III REIMBURSEMENT OF PROJECT COSTS Section 3.1 Site Improvements and Legal and Administrative Expenses. The parties agree that the costs of 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 and the costs of the Legal and Administrative Expenses shall be paid by the City. The City shall reimburse the Developer for up to $390,450 of the Site Improvement costs actually incurred and paid by the Developer (the "Reimbursement Amount ") as further provided in Section 3.2. The City shall reimburse itself from 100% of the Tax Increments for the cost of the Site Improvements and Legal and Administrative Expenses together with interest from the date sums are advanced by the City at the rate of 5.5 %. The Interfund Loan is may be prepaid at any time from excess Tax Increments or by the Developer in whole or in part at a price of par plus accrued interest. Section 3.2 Reimbursement of Site Improvement Expenses. (1) The Developer shall provide the City with invoices due and payable in an amount not less than the Reimbursement Amount. The City shall pay directly or reimburse the Developer for the actual Site Improvement costs within 20 days of the receipt of the invoices and /or receipts. The City's obligation to reimburse the Developer for the actual Site Improvement costs shall be subject to satisfaction of the following conditions precedent: (a) The Developer shall be in material compliance with all the terms and provisions of this Agreement; (b) The Developer shall have submitted to the City Construction Plans for the Minimum Improvements and such Construction Plans shall have been approved by the City pursuant to Section 4.2 of this Agreement; (c) Execution of an Assessment Agreement relating to the Development Property by the City, the County and the Developer pursuant to Section 6.1 of this Agreement; 1549292v2 (d) Receipt of an opinion of counsel to the Developer in the form attached hereto as Exhibit E; (e) Delivery to the City of an agreement by the holder of the First Mortgage agreeing to be bound by the Assessor's Minimum Market Value set forth in the Assessment Agreement relating to the Project; (f) The Developer shall furnish the City evidence, in a form satisfactory to the City such as a letter of commitment from a bank or other lending institution, that the Developer has firm commitments for financing for the acquisition of the Development Property and construction financing for the Minimum Improvements in an amount sufficient, together with the Reimbursement Amount and equity commitments, to acquire 7