Resolution 05-EDA207 - Laserfiche WebLink

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. . . ARTICLE III UNDERT AKINGS BY DEVELOPER AND AUTHORITY Section 3.1. Reimbursement of Costs. The parties agree that the construction of the Project by the Developer is essential to the continued operation of the Developer in the City. The costs ofthe Project are estimated to be at least $1,200,000. The costs of the Project shall be paid by the Developer. The Authority shall reimburse the Developer for $250,000 of the costs of the Project actually incurred and paid by the Developer (the "Reimbursement Amount"), as fmiher provided in Section 3.2 hereof. Section 3.2. Reimbursement: Tax Increment Revenue Note. The Authority shall pay the Developer the Reimbursement Amount through the issuance of the Authority's Tax Increment Note in the principal amount of $250,000 (or such lesser amount as provided in Section 3.1) in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (1) The Note shall be dated, issued and delivered when the Developer shall have provided paid invoices or other documentation evidencing to the reasonable satisfaction of the Authority that construction of the Project has been completed and the Developer has incurred and paid all costs of the Project in an amount not less than the Reimbursement Amount. (2) The unpaid balance of the Note shall bear simple, non-compounded interest from the date of issuance of the Note, at 5.00% per annum. Interest shall be computcd on the basis of a 360 day year consisting of twelve (12) 30-day months. (3) The principal of the Note and the interest thereon shall be payable exclusively from Tax Increments. (4) The payment dates of the Note shall be the Note Payment Dates. On eaeh Note Payment Date and subject to the provisions of the Note, the Authority shall pay, against the principal and interest then due on the Note, any Tax Increments received by the Authority during the preceding 6 months. All such payments shall first be applied to accrued and unpaid interest and then to principal of the Note. (5) The Note shall be a special and limited obligation of the Authority and not a general obligation of the Authority, and only Tax Increments shall be used to pay the principal of and interest on the Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Note are insufficient for such purposes, the diffcrence 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 Note. (6) The Authority's obligation to make payments on the Note 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 (B) this Agreement shall not have been terminated pursuant to Sections 4.2 or 5.7. 1796750vl 7