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RESOLUTION NO. 1847 • <br /> PAGE FOUR <br /> *11 . The fair market rental value for general purposes <br /> ( not solely for the applicant ' s purpose ) must at <br /> least equal the annual principal and interest as <br /> they will become due during the life of the issue <br /> and the appraised value shall at least equal the <br /> principal amount of the loan or bonds to be <br /> issued . <br /> *12. The applicant shall be required to complete the <br /> project as described from its own funds should <br /> the proceeds prove to be inadequate for the <br /> purpose . The applicant shall require a 100% <br /> performance bond of the building , electrical , <br /> mechanical and other contractors guaranteeing <br /> completion of the building according to <br /> ,specifications and within agreed contract prices. <br /> *13 . The applicant and its bond underwriters shall <br /> hold harmless the City, its officers , consultants <br /> and agents for any alleged or actual violation of <br /> any securities laws , state or federal , in <br /> connection with the issuance of bonds or loans 1111 <br /> for the project. The City may require a surety <br /> bond to assure this "hold harmless" provision . <br /> *14 . Rent for the project shall be paid not less than <br /> monthly into a special City account with the <br /> trustee and the trustee shall be required to <br /> invest cumulated rent until needed to pay <br /> principal and interest on the bonds or loan . In <br /> addition , the bond proceeds including any <br /> reserves or capitalized-interest for the project <br /> shall be invested . Investment earnings shall <br /> accrue to the benefit of the City and any excess <br /> not needed for debt service shall be paid over to <br /> the City not less than annually, and such amounts <br /> may be used for any lawful City purpose . <br /> *15 . In consideration of the City ' s acting as a <br /> financing conduit, lending its tax exempt status <br /> to the project, the applicant shall pay to the <br /> City from the loan proceeds the sum of 1% of the <br /> first $1 million principal amount of the loan <br /> and 1/2 of 1% of any principal in excess of $1 <br /> million , which shall be used by the City for <br /> general commercial and industrial development <br /> purposes or for any other legitimate City 410 purpose . The City will allow the applicant to <br /> enter this cost into the project cost for <br /> financing purposes. <br /> *Asterisked items apply particularly if other than <br /> sophisticated buyer , non-recourse mortgage revenue note or <br /> bond financing is to be used. <br />