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ART�CLE III Public Develo ment Costs• Financin • Co�ve ance of Land SectiQn 3.1. Status of Aroperty. (a) The DeveIoper currently hoIds fee tit�e to the Development Property and tl�e Triangle Parcel. The CiEy has no obiigation to acquire the Development Property or any portion thereof. The Developer will co�vey t�e TriangIe Parcel to the City in accordance with Section 3.5 hereof. {b) Prior to commencement of construction of the Minimum Impravernents, the Deve[oper wil} replat the Deveioptnent 1'roperty and in cot�nection w�th that effort wil] enter into the Land Developmenf Agreement. Section 3.2. A�h3ic Develapment Costs. In order to make development of the Minimum Improvements economically feasible, the City wil] reimburse the De�e}oper (in the manner set forth in Section 33) for a partion of the following "Pub�ic Development Cos#s" incurred by Developer on the Development Property: demolition, exeavation, grading, filling, soil corrections, environmental remediation, la�dscapi�g, parking, Utilities (excluding the UtiIity Improvements); footings a.nd foundations, and o#her site improvetnents. The total principa� amount of P�blic Development Costs subject to reirr�bursement will not exceed the lesser of $1,1 15,000 or the total actual, documented amount of such costs. Public De�elopment Costs in excess of $1,� 15,Q00 are the responsibility of the Developer. The Ciry shal] have no obligation io the Developer or to any third party with respect to any defects in the construction of ir�-�provements financed or reimbursed by the City as Pub�ic Development Casts. Section 33. Reimbursernent of Public Develop�nent Costs. (a) To finance rei�nbursement of a portion of the Public Development Costs paid by the Developer, the City shai� issue aud the Developer shall purchase the Note in #he maximum principal amount of $l,l 15,000, with the tenns, and substantially in the form, set forth in the Authorizing Resol�tion attached as Scheduie C. The City an� the Developer agree that the co�tsideration from the Developer for the purchase of the Note shall consist of the Developer's payrnent of the Public Deve]opment Costs in at least the principal amount of the Note. The City shall deliver the Note upon compiiance with Section 3.3{b) and detivery by the Developer of an investment le�ter reasonably acceptable to tl�e City. The Note wi�l be dated as of delivery, and interest wiIl accrue from the date of issue at the rate that is the tesser of (i) 6.25 percent per annum, or {ii) the tr�e interest cost on the �rst series of long-term fxed rate Housing Revenue Bonds iss�eci to finance the Minimuin Improvements, or if the fiirst Housing Revenue Bonds are not issued on a iong-terrn fxed rate basis, t�e true intetest cost on such bonds if they had been issued on a tong-term fixed rate basis, as evit�enced by an estimate provided by third party underwriter mutually selected by the City and Deve�oper (at Developer's cost, if any). If the conditions for delivery of the Note have not been met within �ive years after the date of certification of tt�e TIF District, the City's obligation to issue, and the Deve}oper's right to receive the Note and any payments of Available Tax ]ncrerr►ent thereunde� shal] terminate. (b) As a conditian to issuance ar�d delivery of the Note, the Developer must s€tbmit to the City Representative written evidence in a form satisfactory to the City Representative that Public De�elopment Costs in at least the principaf amount of the Note requested have been paid. Such evidence shall incl�de, at a minirrtum, paid invoices ar comparable evidence of payment. At the City's request, Developer shaIl also provicfe evidence thai the costs are commercially reasonable, evidenced by requests for proposai, bid solicitatiorts, ar similar rnaterials. (c) The Developer unc�erstands and acknowledges that the Ciry makes �o representations or warranties regarding the amount of A�ailable Tax Increment {as defined in the Note}, or that re�enues 7