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

Home Browse Search

the impiementation of this Agreerneni. Nothing in this Section is intended to �x�.ake an.y other person ar entity a third-party beneficiaxy of this Agreenaent. Section 3.7. Records. The City and its representatives shail have the right at all reasonable times after reasonable notice to inspect, examine and copy all books and records of Developer relating to the Minimum Improvements and the Pubtic Developrnent Costs. Section 3.8. TIF I,00kback. (a) DeveIoper ac�cz�owledges that the level of tax increment assistance in this Agreement is based on Developer's Public Develop�nn.ent Casts, the costs of the Minimum Improvements, and terms of the Housing Revenue Bonds that are Developer's expected source of capital financing. Upon completian of the last Phase of the Minimuzn Inaproverzae�ts, issuance of the last series of Housing Revenue Bonds, and completion of at least one fiscal year of operation of al( the Minirt�unn Innp:rovennents (the "Calculation Date"), Developer will s�zbxnit io ihe Ciry a pro forrna updated to reflect alI actual cos#s of development of the Minimum Improvements, including an estimate of the debt service coverage ratio for all outstanding Housing RevenUe Bonds for �ve fZscal years after Calcutation Date. For purposes of calculating debt service co�erage, operating re�enues frorz� #he Developer's care center {which is lacated on the same praperty but is not part of the Minimum Improvements) will be excIuded. If the mean projected debt coverage ratio for all outstanding Housing Revenue Bonds for those five fiscal years (the "Actual Coverage") exceeds the debt service coverage for those years that was used for purposes of zzaarketing the outstanding Housing Revenue Bands, plus five percentage points (the "Adjusted Marketing Coverage"), the City wilI calculate the net preseni value (as of the CalcuIation Date) of the a�ou�t by whick� the actual cash flow after debt service on all Housing Revenue Bonds for the relevant five-year period exceeds the cash flow after debt service that would result if the cash flow matched the Adjusted Marketing Coverage. That net present value of excess cash fi�aw is referred to as the "Excess Amount." Present value is calculated using �he mean true interest cost on all outstanding Housing Revenue Bonds. The Adjusted Marketing Coverage must be evidenced by bond covenants, disclosure documents, or other reasonable evidence of the debt service coverage usecE for marketing purposes at the time of issuance of each series of Housing Revenue Bonds. Example: The average five year cash flaw for marketing purposes is 135%; therefore, the Adjusted Marketing Percentage is 140%. If actual projected cash fiow as of the Calculation Date is ISfl%, th� five years of cash flow r�presenting tha increase in Actual Coverage (150%) over Adjusted Marketing Caverage (140%} is present vaIued to the Calculation Date, yielding tne Excess Amount. (b) If the City finds an Excess Amount under paragraph (a) of this Section, then th� Excess Arrzount will be applied to reduce tk�e outstanding principal amaunt af the TIF Note {as a deemed prepayment} in accordance with the terms of �e TIF Note. Such event must be evidenced by delivery by the City #o Developer of a written notice stating the Excess Amount. The Excess Am�unt will be deemed prepaid as of the Calcuia#ion Date. (The remainder of this page is intentionaliy left blank.) 37S990v6 SJB AR200-10 �1