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ARTICLE III Public Develc�pment Costs; Financin�; Convevance of Land Section 3.1. Status of Pro e r. (a) The Developer currently holds fee title to the Deve�opment Property and the Triangle Parcel. The City has no obligation to acquire the Development Property or any portion thereof. The De�eloper will convey the Triangle Parcel to th� City in accordance with Section 3.5 hereof. (b) Arior to comme��cement of construction of the Minimurrt �mprovements, the Developer will z'eplat the Development Property and in connection with ihat effort wi11 enter into the Land Development Agree�nent. Section 3.2. Publi� Developrnent Costs. In order to make development of the Minimum Improvemen#s economicalty feasible, the City wtll reimburse the Deveioper (in the rnanner set forth in Section 33) for a portion of the fo][owi�g "Public Development Costs" incurred by Developer on the Deveiopment Property: dernolitioi�, exca�ation, grading, frlIing, soi] corrections, environmental remediation, landscaping, parki��g, utilities (excluding t�e Utility Impravements), footings and fo�ndatians, and other site improvements. The total prii�cipal amount of Pub�ic Development Costs subject ta rei�nbursement wil3 nat exceed the lesser of $1,] ] 5,000 or the total actual, documented amount of such costs. Public Development Costs i� excess of $l,l 15,Q00 are the responsibility of the Developer. The Ci#y shalI have no obligation to the Developer or to any third party with respect to any defecis in the consiruction of improvements fnanced or �eimb��rsed by the City as Public Development Costs. 5ection 33. Reimbursement of Public Deve�opment Costs. {a) To finance reirnbursement af a portion o� the Public Development Costs paid by the De�eloper, the City shall issue and the Developer shall purchase the Note rn the maximum principal amount of $1,115,000, with t3�e terms, and substantially in the form, set forth in #�e Autllorizing Resolution attached as Sched�le C. The City and the Developer agree t�at the consideration from the Deveioper for the p�trchase of the Note shall consist of the Developer's payrneni of tl�e Public Development Casts in at least the principal amount of the Note. The City shail deiiver the Note upon complia»ce with Section 3.3(b} and delivery by the Developer of a� investment ]etter reasonab3y acceptable to the City. The Note wili be da�ed as of delivery, and interest will accrue from the date of issue at the rate that is the Iesser of (i) 6.25 percent per annum, or (ii) the true interest cost on the frst series of lo�g-term fixed rate Housing Revenue Bonds issued to finance the Minimum Improvements, or if the f�rst Housing Revenue Bonds are nat isst�ed on a long-term fixed rate basis, the true interest cost o�� such bonds if they had been issued on a long-term fixed rate basis, as evidenced by an estimate provided �ay third �arty underwriter mutually selected by the City and De�eIoper {at Developer's cost, if any}. �f tlie conditions for delivery of the Note ha�e not been met within ii�e years after the date of certification af the TiF District, the City's obligation Eo issue, and the Developer's right ta receive the Note and any payments of Availabie Tax Increment thereunder shal! terminate. (b} As a co�ditioi� ta issuance and delivery of the Note, the Developer must subrr�it to tl�e City Representative written evidence in a form satis�actory to t�te City Representative #hat Public Developtnent Costs in at least the principal a�nount of the Note reguested have been paid. Such e�idence sha�l include, at a minimum, paid invoices or cornparab�e evidence o�payment. At #he City's request, Developer shall also provide evidence that the costs are commercially reasonable, evidenced by requests for praposal, bid soIicitations, or similar materials. {c) The Developer understa�ds and acknawledges that the City rrsakes no representations or warranties regarding ihe amount of Avai�able Tax Inerement (as de�ned in the Note), or �hat revenues 378990v10 S1B AR20D-i0 7