03-08-1999 CC - Laserfiche WebLink

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ARTICLE III THE IMPROVEMENTS Section 3 . 1 . Undertakings of the Developer. Subject to Unavoidable Delays, the Developer agrees to exercise reasonable effort to cause the Improvements to be completed. The Authority acknowledges that the Developer' s ability to construct the Improvements is subject to current market conditions, including without limitation the availability of tenants, owners and financing and that the Developer is not obligated to cause the construction of the Improvements on a speculation basis . Pursuant to prior agreement of the Parties the Authority retained the services of Dahlen & Dwyer to prepare an appraisal (the "Appraisal") of the fair market value of the Development Property based on its present state and the type of use represented by the Improvements . The fair market value of the Development Property is determined to be $615, 000 pursuant to the Appraisal . The Developer shall pay or reimburse the Authority for the $1, 500 cost of the Appraisal. The Authority has provided the Developer with a copy of the completed Appraisal . Section 3 . 2 . Undertakings of the Authority. The Developer hereby represents to the Authority that the Developer has incurred and paid or will incur and pay the Development Costs, hereby defined to be the sum of (1) the current fair market value of the Development Property, being $615, 000, as indicated in the Appraisal; (2) the demonstrated costs of the public infrastructure improvements (the "Public Improvements" ) described in Exhibit D, but only if and to the extent the costs thereof are unreimbursed expenses of the Developer which are not repayable by special assessment or other means; and (3) the demonstrated and unreimbursed costs of the Developer incurred in making the necessary site improvements (the "Site Improvements" ) to the Development Property in connection with the completion of the Improvements, as described in Exhibit E. The Authority hereby agrees to defray the Developer' s Development Costs via the issuance of the EDA Note in the maximum principal amount equal to the lesser of (1) $1, 200, 000 or the (2) sum of the demonstrated costs of the Site Improvements and the Public Improvements (unless specifically assessed) plus the $615, 000 fair market value of the Development Property under the Appraisal . The EDA Note shall be issued to the Developer (or to such other person or entity as the Developer shall have theretofore designated in writing to the Authority as the initial registered owner of the EDA Note) , as registered owner thereof, substantially in the form of Exhibit B to this Agreement, the issuance of which EDA Note is hereby authorized and approved, subject to the following conditions : (a) The EDA Note shall be dated, issued and delivered on or as soon as practicable following the date of execution and 334455.6 3-1