2008.09.15 EDA Packet - Laserfiche WebLink

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ARTICLE 111. UNDERTAKINGS BY DEVELOPER AND CITY Section 3.1 Project, Site Improvements and Legal and Administrative Expenses. (1) The Developer shall cause the Project to be constructed and installed in accordance with the terms of this Agreement, the Development Program, the construction plans dated , in substantially the form attached as Exhibit D and approved by Resolution No. (the "Construction Plans") and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (2) The construction of the Project will commence on or after September 1, 2008 and, barring Unavoidable Delays, the Project will be substantially completed by December 31, 2009. (3) The costs of the Site Improvements and the Project shall be paid by the Developer. The City shall reimburse the Developer for the lesser of$380,000 or the costs of the Site Improvements actually paid by the Developer (the "Reimbursement Amount") as further provided in Section 3.2 hereof. Section 3.2 Reimbursement: Tax Increment Revenue Note. The City shall reimburse the Developer for the costs identified in Section 3.1 through the issuance of the City's TIF Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (1) The TIF Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the Developer has completed the Project and incurred and paid the cost of Site Improvements, as described in and limited by Section 3.1 and shall have submitted a closing statement, purchase agreement and paid invoices for such costs in an amount not less than the Reimbursement Amount. (2) The unpaid principal amount of the TIF Note shall bear annually compounding interest from the date of issuance of the TIF Note, at 6.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. (3) The principal amount of the TIF Note and the interest thereon shall be payable solely from the Tax Increments. (4) On each Note Payment Date and subject to the provisions of the TIF Note, the City shall pay, against the principal and interest outstanding on the TIF Note, Tax Increments received by the City during the preceding 6 months. All such payments shall be applied to reduce the principal of and interest on the TIF Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the TIF Note are insufficient for such purposes, the difference 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 TIF Note. 2212455v4 6