6B, Public Hearing Proposed TIF District Resolution 2010-081, -082 & -083

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_ ... .. . _ . .. .... .. _ _ __ _ _ ART�CLE Iii Publit Development Costs; Financin�; Conveyance of Land Section 3.1. Status of Praperty. (a) The Developer curirently �iolds fee title to the Developz�aent Property and the Triangle Parcel. The City has no obligation to acquire tha Development Property or any portion thereof The Developer will convey the Triangle Parcel to the City in accordance with Section 3.5 hereof. (b) Prior to comtxzen�cement of construction of the Minimum Improvements, the Developex wiIl repiat the Develapment Property and in connection with that effort will enter into the Land Deveiopment Agreement. Section 3.2. Public Develo ment Cos#s. I� order to make develop�nent af the Mininaum Improvements ecanomically feasible, the City will reiznburse the De�eloper {in the manner set forth in Section 3.3} far a portion of the following "Public Deve�opment Costs" incurred by Develaper on the Development Properiy: demolition, excavation, grading, filling, soil corrections, environmenYal remediation, landscaping, parking, utilities (excluding the Utility Improvements), foot�ngs and foundations, ar�d other site i�nnprove�nents. The total principal amount of Public Developmcnt Costs subject to reimbursament will not exceed tha lesser of $1,115,000 ar the total actual, documented arnount of such costs. Public DeveIopment Costs in excess of $1,115,400 are the responsibitity oi the Developer. The City shall have no obligation to the Developer or to any #hird party with respect to any defects in the construction of impro�ements iinanced or reiz�nhursed by the City as Public Development Costs. Section 3.3. Reimbursement of Pubiic Develapment Costs. (a) To finar�ce reimbursement of a portion of the PubIic Developm.ent Costs paid by the Developer, the City shaIl issue and tha Developer shall purclaase the Note in the maximum principal acx�.ount of $1,115,000, with �he teriaas, and substantially in the form, set %rth in Yhe Authorizing Resolution attached as Schedule C. The City and the Developer agree that the consideration from the Developex for the purchase af the Note shall consist of the Develaper's payment of the Public Development Costs in at least the principal amount of the Note. The Ci#y shall deliver the Note upon compliance with Section 3.3{b) and delivery by the Developer of an investme�t Ietter reasonably acceptable to the City. The Note will be dat�d as of delivery, and interest will accrue fram the date of issue at #he ra�e that is the lasser of (i) 6.25 percent per annum, or (ii) the true interest cast on the first series of long-tez-�n fixed rate Housing Revenue Bonds issued ta finance tha Minimurn Improvements, or if the first Housing Revenue Bonds are not iss�ed an a long-term fixed rate basis, the t�rue interest cost on such bonds if they had 6een issued on a long-term fixed rate basis, as evidenced hy an estimate provided by third party underwriter mutua�ly selected by the City and Developer {at Developer's cost, if any). If the conditions for deIivery of the Note have not been rnet within �ve years after the date oi certiFication o� the TIF District, the City's obligation to iss�ze, and th� Developer's right to receive the Note and any payments of Available Tax Increment thereunder shall ierxninate. (b) As a condition to issuance and cEeli�ery of the N�te, the Developer must subxnit to th� City Representative written evidence i�t a forzn satisfactory to the City Representative that Public Development Costs in at least the principal amount of t1�e Note requested have been paid. Such eviden.ce shall include, at a minimum, paid invoices or conaparable evidence of payment. At the City's request, Developer shaIl also provide evidence that the costs are commercially reasonable, evidenced by requests for proposal, bid soiicitations, or similar materials. (c) Tk�e Developer understands and acknowledges ihat the City makes no representations or warranties regarding the amount of Avaitable T� Tncrement (as de�ned in tlie Note), or that revenues 3�s99o�6 s.ra axzoa-�o �