8A, Presbyterian Homes TIF - Laserfiche WebLink

Home Browse Search

ARTICLE VII Finanein� Section 7.1. Develo er Financin . (a) The parties agree and acknowledge that #he Developer intends to finance the construction of the Minim�m lrf-iprovements throug� issuance by the City of ��Q+-l{��-k�et�s��e��te be�td�F��Housing Revenue Bands"�. The City agrees to issue the Ho�sing Revenue Bonds, subject to the terms and conditions of ihfs Section, and comn�iance with alt reauarements of State iaw and the Interna] Revenue Code of 1986 as ar�ended and related r�ulations. _..------_ - �_ _____ {b) The Housing Revenue Bonc�s may be issued in one or more series, at Developer's option. Each series of T-lousing Revenue Bonds must be issued in accordance with a�l terms and conditior�s of the City's Procedure for Application to the City of Arden Hills for Private Activity Re�enne Bond Financing dated__Sentember 14. 2009. (the "Private Activity Bond Policies"� *'��+ �ra ;� �� * �r �F *�,� -'�*� �r -- --- ----- -_ .._ ��'�'� �" Notwit�standin an hin to the contra�in the - �i• �..�-__..g - Private Activit Bond_Policies, the �arties a�ree that ihe administrative fee re�uireci �nder Part II. Section 9 therein,�hall be na�able_in a lump surn at cIosin� on each series of Housin�Revenue Bonds. The Iumn . _ __-- --- - _�� sum__shal] be one�ercent of the ori inal . rinci a] amount of t�e first 5 000 000 in Housin... _Revenue Bonds issued; one-half percent af the ori . inal rinci al amount of the next_`$15,000.000 in ori� �rincipal amount of_.HousinQ Revenue _Bonds assuEd: and one-auarEer�ercent of the ori�inal principai ----- --- _ amount of Nausin6 Reyenue Bonds issued_in excess of �20 000,000. For puipQses of the fee eaIculation, the�ncinal amount of all Housin Revenue. Bonds will be ag�re ated as if alI_.were issued_o�► the same date, b�t the adir�inistrative fees wiIl be�a, a�b}e upon closin� of each separate series. In accarc�ance with Part Ill,._$ection 2 of the_Private Activ_it�$ond Policies, no additiQnal admin�strative fee is navabie u�on ... .. _ iss�ance of an� series of bonds to refund initial Housin Re.v..enue Bonds for which a fee was �aid at closin _,__If an _series_of Housin. Revenue Bonds are issued in_ art to refund a� rior Housin Re�enue —__._ _ _ . _ __. Bond and in._.part to f nance construction of the Minimum Imoro_vements that is a mixed refunding ar�c� .. . _.-- "new monev" bonti onl�the� principal amount of the bonds aliocable to the new monev nortion of that --.._.__�. . _ __ � __. .._ � --- _.._ series will be taken into account in.determinin the adrr�inistrative fee for that series. � (c} If ihe City determines ihat issuance of a�y se�ies Ha�sing Revenue Bonds is �-easonably expec#ed to cause governmental bonds issued by the City in that calendar year ta be ineligible for designation as "quaiified tax exempt abtigations" uncier Section 265(b}(3} of t�e Internal Revenue Code of 1986, as amended (also known as "bank qualifed"), t�e Deveioper wi�l be required to reimburse the City, at the time of issuance of the City's bonds in that calendar year, for any interest rate differential between bank qualified and non-bank quaIified bonds, as determined by the City's independent �inancia9 advisor. (d) Devetoper may not seek, ar�d City will not consent to, iss�ance of any series Housing RevenUe Bonds by a�y unit of government other than the City_ r'T'��t�sse�l:� Section 7.2. Subordination. In order to facilitate issuance of the Housing Revenue Bonds, the Authority agrees to subor�inate its rights under this Agreement provided t}aat such subordination shatI be subject to such reasonable terrns and conditions as t�e Authority and the underwriter and trustee far the Housing Revenue Bonds mutualIy agree in writing. (The remainder of this page is intentionally left b�ank.) 20