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RESOLUTION NO. 1847 <br />PAGE FOUR <br />*11. The fair market rental value for ueneral 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 />*1.2. 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 <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 18 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 <br />purpose. The City will allow the applicant to <br />enter this cost into the project cost for <br />financing purposes. <br />eterlske tems apply par�i1cularly if other than <br />sophisticated buyer, non -recourse mortgage revenue note or <br />bond financing is to be used. <br />