07-23-2003 Council Agenda - Laserfiche WebLink

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ARTICLE VII TAX INCREMENT SHORTFALL GUARANTY Section 7.1 Developer's Agreement to Pay Tax Increment Deficiency. If as of any February 1 or August 1, commencing February 1, 2005 to and including February 1, 2020, the Tax Increments received by the City in the prior 6 months is less than the amount shown in the schedule attached as Exhibit G for the Development Property the Developer will upon fifteen (15) days written notice from the City to the Developer pay to the City an amount equal to the deficiency. The Developer shall deliver to the City a guaranty in the form attached hereto as Exhibit F fully executed by the Developer guaranteeing perfo„nance of the Developer's obligation to pay any deficiency in Tax Increments as provided in this Section 7.1. As security for the Guaranty, the Developer shall simultaneously with the execution of this Agreement deliver to the City an irrevocable letter of credit issued by a financial institution and in a form satisfactory to the City in the amount of $60,000. The letter of credit shall expire no more frequently than annually on December 31 of each year commencing December 31, 2004 and the Developer must replace or renew the letter of credit in a foam satisfactory to the City not less than 60 days prior to its expiration. 549292v1 - 2 3 -