12-19-2001 Council Agenda - Laserfiche WebLink

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the date of the damage or destruction and the Termination Date under the terns of the Assessment Agreement and the City's reasonable estimate of the Tax Increments, if any, the City will receive from the real estate taxes due and payable with respect to the Redevelopment Property between the date of the damage or destruction and the Termination Date in the absence of the Assessment Agreement and assuming the Minimum Improvements are not repaired or replaced. Upon the Developer's payment of such amount, the City will terminate the Assessment Agreement. 10.3. Insurance Proceeds. Unless otherwise required by the terms of a First Mortgage, all insurance proceeds payable to Developer as a result of damage in the amount of $100,000 or less may be paid directly to the Developer. Subject to the terms of a First Mortgage which allow the First Mortgagee to apply the proceeds of an insurance claim to the payment of the debt the First Mortgage secures or to control the disbursement of the insurance proceeds to repair or replace the improvements on the Redevelopment Property, the Developer must deposit Net Insurance Proceeds payable as a result of damage or destruction occurring before the Termination Date with a trustee the City, the Developer and the First Mortgagee jointly select (or to any other person the City, Developer and First Mortgagee joint select) and the Net Insurance Proceeds may only be disbursed pursuant to reasonable disbursement procedures mutually agreed upon by the Developer, the City and the First Mortgagee to fund the repair or the replacement of the Minimum Improvements. 10.4. Condemnation. If, before the Termination Date, an entity with the power of eminent domain other than the City or the Authority commences or threatens to commence proceedings to acquire all or any portion of the Redevelopment Property through the exercise of the power of eminent domain, the Developer must notify the City within five Business Days of the date the Developer obtains actual knowledge the condemning authority has commenced or is threatening to commence such eminent domain proceedings. If an entity with the power of eminent domain acquires all of the Redevelopment Property through the exercise of the power of eminent domain before the Termination Date, the Developer must use the Condemnation Award, less any portion of the Condemnation Award the Developer is required to pay to a holder of a First Mortgage and to the City under the Developer Mortgage, to pay the City an amount equal to the present value of the difference between the City's reasonable estimate of Tax Increments the City would have received from the Redevelopment Property between the date of the taking and the Termination Date in the absence of the taking and the City's reasonable estimate of the Tax Increments the City will receive from the Redevelopment Property following the taking or the Developer may enter into an agreement with the City for the construction of a new project within the Tax Increment District having a minimum market value equal to or greater than the minimum market value established for the Redevelopment Property under the terms of the Assessment Agreement. If an entity with the power of eminent domain acquires a part of the Redevelopment Property, the Developer must either elect, by written notice to the City, to have the provisions of this Section 10.3 which apply to a taking of all of the Redevelopment Property apply or enter into an amendment to the Assessment Agreement with the City which confirms the Assessment Agreement will continue in full force and effect (without modification of the 1353333vDOC Red (V3 to V2) Page 126