11-28-2022 EDA - Laserfiche WebLink

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11.23.2022 B-2 MU205\59\835592.v10 Qualified Costs related to the Minimum Improvements. “Qualified Costs” shall mean acquisition, construction of affordable housing, demolition, remediation, site improvement and infrastructure costs incurred in connection with the construction of the Minimum Improvements. Payments will be made through a TIF Note issued on a pay-as- you-go basis over a MAXIMUM of 20 years at a rate the lesser of 5.50% per annum or the rate of the Developer’s first mortgage lien. 8. Lookback: The Public Assistance will be subject to a lookback upon construction completion of the Minimum Improvements. If the amount of total development costs actually incurred is less than the amount of estimated total development costs, the Public Assistance will be reduced by 50% of such deficiency and the principal amount of the TIF Note will be adjusted accordingly. 9. Minimum Assessment Agreement: Developer and EDA will enter into a Minimum Market Value Assessment Agreement (“MAA”) setting a minimum property tax value for the building of $28,700,000 for January 2, 2026 for taxes payable in 2027. 10. Fees: The City acknowledges the Developer made an initial escrow deposit of $10,000.00 for reasonable out-of-pocket expenses for legal and financial consultant services. Up to an additional $30,000.00 subsequent deposit will need to be made at the time application is made with the EDA and City for public subsidies, particularly when Developer and the City and EDA agree to move forward with creation of the TIF district for the Property, drafting the Development Agreement or Contract for Private Development, analysis, and administrative fees associated with this transaction. In addition, the Developer will be required to deposit additional funds if the initial escrow deposit or subsequent deposits are fully drawn. Any funds deposited by Developer and not expended by the EDA for its legal, financial advisor, or other consultant fees on or before the date of execution of the Development Agreement or Contract for Private Development will be returned to the Developer without interest. The Developer shall pay all other normal and customary EDA fees and expenses, unless otherwise specified in the Development Agreement or Contract for Private Development, for the approval and construction of the Minimum Improvements. 11. Miscellaneous: a. No transfer of Development Agreement without EDA consent. b. Developer covenants to pay property taxes and maintain customary insurance.