EDA Packet 11.16.21 - Laserfiche WebLink

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(4) The owner represents and warrants that the subject property is not so classified for tax purposes as to result in deferral of the obligation to pay special assessments; and the owner agrees that it will take no action to secure such tax status for the subject property during the term of the assessment. (5) The City obtains mortgage consents from all lenders and/or lien holders to ensure that payment of the assessments takes first position in the event of default. iii) Special assessments for the improvement project will be levied to the subject property in the following manner: (1) Special assessments shall be payable over a maximum term of five (5) years and bear interest at a rate of two points over the bond rate if bonds are issued by the City for the improvement project, or two points over the current bond rate as determined by the City's financial consultant. (2) To secure payment of the special assessments, the owner of the subject property shall provide to the City a letter of credit, cash surety, or combination thereof, for 60% of the total assessment amount. Reference herein to special assessments shall be deemed to include, and shall include, all interest thereon. The bank and form of the letter of credit or other security shall be subject to the approval of the City Administrator. Such letter of credit shall be maintained in effect until all assessments are paid in full. As assessments are paid, the letter of credit may be reduced or replaced by substitute letters of credit, not more often than once every twelve months, to an amount that is not less than the amount of the unpaid assessments. In the event special assessments are not paid when due, the City may draw on the letter to pay such special assessments. iv) Special assessments against each lot must be paid in full prior to any of the following occurrences: (1) Change in ownership (2) Subdivision of the lot (3) Issuance of a building permit for that lot. Page 2