2009-12-07 Regular Council Session

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4.3 City’s Obligations Limited to Special Allocation Fund and Bond Proceeds{ TC "4.3 }. City’s Obligations Limited to Special Allocation Fund and Bond Proceeds" \f C \l "3" Notwithstanding any other term or provision of this Agreement, TIF Notes issued by the City to the Developer for Reimbursable Redevelopment Project Costs are payable only from the RPA-1 Subaccounts and, following approval of the RPA-2 Redevelopment Project, the RPA-2 Subaccounts of the PILOTS Account and the EATS Account of the Special Allocation Fund and from Bond Proceeds and from no other source. ARTICLE V{ TC \n \l1 “ARTICLE V” } TIF OBLIGATIONS{ TC \n \l1 “TIF OBLIGATIONS” } 5.1 Issuance of TIF Notes{}. TC "5.1 Issuance of TIF Notes" \f C \l "3" The City Exhibit G agrees to issue TIF Notes, in the form substantially similar to hereto, to reimburse the Developer for Reimbursable Redevelopment Project Costs up to the applicable Maximum Reimbursement Amount. The City may issue TIF Notes in either a taxable and/or a tax-exempt series. 5.1.1 Terms. The TIF Notes shall bear interest at (a) a fixed rate of 8.0% if the interest on the TIF Notes (in the opinion of Bond Counsel) is excluded from gross income for federal income tax purposes (the “Tax-Exempt Rate”) or (b) a fixed rate of 9.5% if the interest on the TIF Notes (in the opinion of Bond Counsel) is not excluded from gross income for federal income tax purposes (the “Taxable Rate”). Interest on the TIF Notes shall be compounded semi- annually. All TIF Notes shall have a stated maturity equal to the longest period permissible under the TIF Act. 5.1.2 Conditions Precedent to Issuance of TIF Notes. No TIF Notes shall be issued until such time as the City has received from the Developer (a) evidence that the Developer has closed or, simultaneously with the issuance of the TIF Notes, will close, on the private financing for all Redevelopment Project Costs to be paid by the Developer for the applicable portion of the Redevelopment Project; (b) evidence of not less than a 15% equity investment in the form of cash or cash equivalent in the applicable portion of the Redevelopment Project; and (c) a Certificate of Exhibit F Reimbursable Redevelopment Project Costs in substantially the form attached as hereto. 5.1.3 Procedures for Endorsements of TIF Notes. Within 15 business days after acceptance by the City of each Certificate of Reimbursable Redevelopment Project Costs, the Article IVSection 5.1 City shall issue, subject to the limitations of and hereof, endorsements to the TIF Notes evidencing additional advances for the reimbursement of Reimbursable Redevelopment Project Costs. Upon the acceptance by the City of a Certificate of Reimbursable Redevelopment Project Costs and the endorsement to the TIF Notes as provided herein, the Developer shall be deemed to have advanced funds necessary to purchase such TIF Notes and the City shall be deemed to have deposited such funds in the Project Fund and shall be deemed to have reimbursed the Developer in full for such costs from the amounts deemed to be on deposit in the Project Fund from time to time. 5.1.4 Holdback from Issuance of TIF Notes. The City shall be entitled to withhold endorsement or issuance of the final 10% of the maximum amount of the City’s obligation to Section 4.1 reimburse the Developer calculated pursuant to for each of the RPA-1 Redevelopment Project and the RPA-2 Redevelopment Project until the City has accepted the Certificate of Substantial Completion for such portion of the Redevelopment Project.