04-22-1992 Council Agenda - Laserfiche WebLink

Home Browse Search

FROM BRIGGS MORGPN SR (FR[`O4. 1'.' 92 10 :2' N0.9 PAGE TaxnlncrementsF,aless Notes. The Notes the rata basis. (5) Notwithstanding anything herein in the Notes to the contrary, the City shall be under no obligation to apply or pay the Tax Increments to the payment of the Notes any earlier than 30 days after it has received the Developer's statement required by paragraph (4) above. Any interest accruing on Tax Increments held by the City pending the Note Payment Dates or receipt of such statement from the Developer shall accrue to the benefit of the City. (6) The Notes shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Increments shall be used to pay the principal of and interest on the Notes. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Notes are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the Notes. (7) The City's obligation to make payments on the Notes on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (8) this Agreement shall not have been rescinded pursuant to Section 4.2(b). (8) The Notes shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit C. In the event of any conflict between the terms of the Notes and the terms of this Section 3.2, the terms of the Notes shall govern. The issuance of the Notes pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the Notes may require in connection therewith, are hereby authorized and approved by the City. Section 3.3 Future Development on the Development Property. If in the future the Developer constructs additional facilities described in Section 2.2(7) hereof on the Development Property that will generate additional Tax Increments this Agreement, at the request of the Developer, shall be modified by the parties hereto to provide for the use of such additional Tax Increments to reimburse the Developer for allowable costs incurred in connection with the construction of such additional facilities under the Tax Increment Act and an additional note or notes shall be delivered on a parity of lien with the outstanding Notes and the additional note or notes shall have the same terms and interest rate as specified in Section 3.2. 214192 Page 34