09/12/2005 Council Packet - Laserfiche WebLink

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Economic Development Authority Amendment to Development Contract - Legacy September 12, 2005 (c) The proceeds of the Interfund Loan ($950,000) will be disbursed to Development Property Owner in accordance with the following terms and conditions: (i) the Development Property Owner has delivered fully executed Assessment Agreements in accordance with Section 6.3 that provide an aggregate minimum market value in at least the amount that generates Tax Increment sufficient to pay the scheduled payments when due on the Interfund Loan, as determined by the City's financial advisor; (ii) the Developer has obtained City Council approval of the site plan and final plat providing for a Rental Housing Component that includes at least 60 units of so- called "work force housing" and a Commercial Component that includes the commercial improvements described in the site plan application filed with the City on August 15, 2005 (i.e., commercial space associated with the rental housing and a separate hotel facility); (iii) if the site plan and plat approval required under clause (ii) does not occur by October 15, 2005, then on that date the Authority will disburse a portion of the Interfund Loan in the amount of $400,000, subject to the conditions that (1) Assessment Agreements are delivered in accordance with clause (i) above, ensuring Tax Increments sufficient to repay the full $950,000 amount of Interfund Loan; (2) the agreement described in paragraph (d) below remains in full force and effect; and (3) such disbursement will be made in the form of a forgivable loan secured by a third Mortgage (subordinate to the first Mortgage given by Development Property Owner to Marshall Investments Corporation dated December 24, 2004, and to the Tagg Mortgage (as defined in paragraph (d) below). The note and third Mortgage will provide that if the conditions under clause (ii) are not met by April 30, 2006, the principal amount disbursed together accrued interest at the rate of 4% is due and payable on April 30, 2006. Any documents necessary to evidence such loan and Mortgage may be executed by Authority officials subject to approval by the Authority President and Authority Executive Director, provided that execution of the agreement by those officials will be conclusive evidence of their approval. (iv) if $400,000 of the Interfund Loan is disbursed under clause (iii) above, the balance of the Interfund Loan ($550,000) will be disbursed promptly upon (1) Development Property Owner's satisfaction of the conditions in clause (ii), but no later than April 30, 2006; and (2) Development Property Owner having delivered evidence reasonably satisfactory to Authority that Development Property Owner has cured (or will cure upon application of such Interfund Loan proceeds) any outstanding default under the Tagg Mortgage. If the conditions for final disbursement have not been met by April 30, 2006, such failure will be an Event of Default subject to the Authority's remedies under Section 9.2 of the Original Contract.