04-22-1992 Council Agenda - Laserfiche WebLink

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FROM BRIGGS MORGAN SF <FRI)04.17.'92 10:26 ARTICLE III UNDERTAKINGS BY DEVELOPER AND CITY N0.9 PAGE B Section 3.1. Site Improvements. The parties agree that the Site Improvements to be constructed by the Developer are essential to the successful completion of the Project. The costs of the Site Improvements shall be paid by the Developer. The City shall reimburse the Developer for the Site Improvement costs actually incurred and paid by the Developer as further provided in Section 3.2 hereof. Section 3.2. Reimbursement: Tax Increment Revenue Note. The City shall reimburse the payments made by the Developer (i) under Section 3.1 for the cost of Site Improvements, and (ii) the cost of the acquisition of the Development Property through the issuance of two Tax Increment Revenue Notes of the City in substantially the form attached to this Agreement as Exhibit C, subject to the following conditions: (1) The first Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the construction of a portion of the Site Improvements have been completed by November 1, 1992 and that the Developer has incurred and paid all costs of those Site Improvements completed by November 1, 1992. The second Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the construction of those Site Improvements installed after November 1, 1992 have been completed and that the Developer has incurred and paid all Costs of those Site Improvements completed after November 1, 1992. (2) The unpaid principal amount of the Notes shall bear interest compounded semiannually from the date of issuance of each Note, at 9.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. (3) The principal amounts of the Notes and the interest thereon shall be payable solely from the Tax Increments. (4) The payment dates of the Notes shall be the Note Payment Dates. The Developer shall submit a statement to the City on or before each January 1 and July 1, commencing on July 1, 1994, setting forth the principal amount of the Notes and the accrued interest thereon due on the following February 1 or August 1 as appropriate. On each Note Payment Date and subject to the provisions of the Notes, the City shall pay, against the principal and interest then due on the Notes, 100% of any Tax Increments received by the City during the preceding 6 months, less $5,000 to be retained by the City. All such payments shall first be applied to accrued and unpaid interest on the Notes and 214192 Page 33 6