07-23-2003 Council Agenda - Laserfiche WebLink

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the EDA an amount (as may be adjusted pursuant to the following sentence, the "Tax Increment Shortfall ") equal to the difference between the Tax Increments the EDA actually receives for that period for that Parcel and the Projected Commercial Tax Increment for that period and Parcel. Notwithstanding the foregoing, the Tax Increment Shortfall with respect to any Parcel shall be reduced by any Available Surplus Townhome Tax Increment (as defined in Section 8.6), if any, that is allocated to that Parcel as designated by Sheuuan Associates, Inc., or such other party designated by Sherman Associates, Inc. to make this allocation. The EDA will notify the Developer with the Report (as defined in Section 8.8) of the amount of any Tax Increment Shortfall, and the Developer must pay to the EDA the amount of the Tax Increment Shortfall set forth in the Report within thirty days of the Developer's receipt of the Report. The EDA's failure to notify the Developer of the amount of the Tax Increment Shortfall within the time period set forth herein does not relieve the Developer from its obligation to pay the Tax Increment Shortfall. Any amounts not paid when due bear interest at a rate of eight (8)% per annum until paid; provided that if the EDA fails to notify the Developer of any amounts due hereunder as provided above, interest will not accrue until the date Developer receives notice. 8.3. Guaranty. To provide additional security for the Developer's performance under Section 8.2, the Developer must deliver the Guaranty, as defined in Section 2.14, to the EDA contemporaneously with the Developer's execution of this Agreement. 8.4. Assignment of Obligations. Upon sale of a Parcel (or portion thereof), the Guarantor will be released from its obligations under the Guaranty as to that Parcel (or portion thereof) if the owner of the Parcel (or portion thereof) or a guarantor of such owner's obligations under Section 8.2 has a net worth no less than One Million Dollars ($1,000,000). 8.5. Shortfall Note. If the Developer (or Guarantor) makes a payment under Section 8.2, the EDA will issue to the person who made the payment a Tax Increment Shortfall Note with respect to the Parcel for which such payment was made, in the form attached hereto as Exhibit L, in a principal amount equal to the amount paid pursuant to Section 8.2 with respect to that Parcel. The principal amount under an outstanding Tax Increment Shortfall Note will be increased from time to time if and to the extent subsequent payments are made by the note holder pursuant to Section 8.2 for the Parcel which is the subject of the applicable Tax Increment Shortfall Note. Each Tax Increment Shortfall Note will bear interest at the rate of three percent (3 %) per annum. On the Maturity Date, the EDA will pay principal and interest owing under the Tax Increment Shortfall Notes in an amount equal to the Excess Tax Increment. The payments of Excess Tax Increment will be allocated between the Tax Increment Shortfall Notes as directed by Sherman Associates, Inc., or such other party designated by Sherman Associates, Inc. to make this allocation. 8.6. Surplus Commercial Tax Increment Application. On any date on which there is Surplus Commercial Tax Increment, the Surplus Commercial Tax Increment will be applied to first to reduce the Outstanding Townhome Tax Increment Shortfall, if any. -15-