07-22-2019 EDA Packet - Laserfiche WebLink

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10 (e) The Developer acknowledges and understands that all of the Assisted Living Units must include kitchen facilities or kitchenettes (sink, microwave, and compact refrigerator) and bathrooms. (f) The Developer further acknowledges and understands that no more than twenty percent (20%) of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses. If the Developer constructs the Skilled Nursing Units within the building in which the Senior Housing Units are located or as an addition to the building in which the Senior Housing Units are located, the Skilled Nursing Units and all other commercial, retail, or other nonresidential uses within the building must not comprise more than twenty percent (20%) of such building. If the Skilled Nursing Units are constructed more than three years after the construction of the Senior Housing Units is completed, the expansion of the building in which the Senior Housing Units are located to include the Skilled Nursing Units may be treated as a separate building and will not be counted toward the 20% limit for commercial, retail or other nonresidential uses in such building. Section 3.4. Development of Skilled Nursing Units. The Developer intends to construct the Skilled Nursing Units as an addition to the building in which the Senior Housing Units are located at some point in the future but plans to construct the Skilled Nursing Units only if they are feasible for the market at the time construction commences. The Developer shall build the Skilled Nursing Units if the following conditions are met: (i) the Developer is able to obtain the proper approvals to transfer beds to the TIF District Property from the State on terms and conditions reasonably acceptable by the Developer; (ii) the Senior Housing Units have maintained at least a 90% occupancy rate for one year; (iii) the Developer is able to find financing for the Skilled Nursing Units from a lender with an interest rate of less than 6.0% per annum; and (iv) a feasibility study commissioned by the Developer or its lender shows that the Skilled Nursing Units are feasible in the market. If one or more of the conditions are not met, it shall not be a default hereunder if the Developer does not build the Skilled Nursing Units. Section 3.5. Reimbursement of Qualified Development Costs. (a) The Developer shall take all commercially reasonable action necessary to construct the Minimum Improvements and the Infrastructure Improvements. In order to make the development of the Senior Housing Units economically feasible, the Authority shall reimburse the Developer for Qualified Development Costs in the maximum amount of $3,600,000. (b) The Developer will be reimbursed for a portion of the Qualified Development Costs with the TIF Note described in Section 3.6 hereof. (c) The Developer will be reimbursed for a portion of the Qualified Development Costs with $382,000 in tax increment derived from the Willow Ponds TIF District following the submittal of written evidence in a form satisfactory to the Authority that the Developer has paid Qualified Development Costs in at least the amount of $382,000 (such costs shall be separate and distinct from the Qualified Development Costs the Developer must provide evidence of before the issuance of the TIF Note as required under Section 3.6(a)(i) hereof).