10/12/2004 Council Packet - Laserfiche WebLink

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• • enter into Assessment Agreements that set a specified minimum market value for the component or portion thereof. Assessment Agreements at specified levels must in any case be in effect before the interfund loan is disbursed (See Part II.B above) and before TIF Bonds are issued (See Part III.0 below) IV. Public Improvements. A. The City will construct all streets, sewer, water, stormsewer and related infrastructure to serve the entire Development Property (referred to as the "Public Improvements "). The City will also construct improvements to the Lake Drive/I -35 intersection (referred to as the "Lake Drive Improvements "). B. The City will assess the Development Property for most of the cost of the Public Improvements, up to a maximum of $5,382,865. Park dedication fees and a small amount of City utility funds will also be used. C. The City will fmance the Lake Drive Improvements mostly through issuance of general obligation tax increment bonds (the "TIF Bonds "). The City is not required to issue the TIF Bonds and begin the Lake Drive Improvements until the Developer has signed Assessment Agreements that provide sufficient tax increment to pay both the TIF Bonds and the interfund loan (described in Part II above). As noted above, the "i'it' Bonds have the first claim on all tax increment. V. Transfer/Partners. The Developer may not assign or other transfer its rights and obligations under Contract without the EDA's prior consent in writing. However, it is anticipated that the Developer will sell portions of the Development Property to subdevelopers (each a "Subdeveloper ") and transfer certain rights and obligations under the Contract to those parties to undertake certain portions of the project. The EDA must approve the Subdeveloper and the terms of the transfer in writing in each such case. This approval does not apply for any transfer to an affiliate of the Developer. VI. Defaults. If Developer defaults (for example, fails to complete a component of the Minimum Improvements as scheduled), the EDA may withhold payments under the Note. If property has been transferred to a Subdeveloper, the required improvements will be allocated to that Subdeveloper, and the EDA may withhold increment only from the parcel that is in default. However, default in the overall required housing types (described in Part III.D) will allow withholding of increment from the entire TIF District. SJB- 250856v7 CL205 -23 a -83-