5.0. HRSR 11-01-2004 - Laserfiche WebLink

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APR. 30. 2004 9 : 40AM METRO, PLAINS NO, 167 P. 4 4. Cost of the Bluff Block. The Development Agreement will identify the purchase price that MetroPlains must pay to acquire the Jackson Block. In addition to being willing to reduce the SAC and WAC fees, if necessary, to make the projects feasible the City is willing to reduce the cost of the Jackson Block in its entirety if necessary. However,the City is willing to reduce the SAC and WAC fees and the cost of the Jackson Block only if construction of the Bluff Block occurs. MetroPlains agrees that the City can recapture the value of the Jackson Block from tax increments derived from inflation. 5. Issuance of City Tax Increment Bonds. The Development Agreement will state that in order to enable MetroPlains to achieve the profit, fees and rate of return contemplated by this memorandum, the City will consider issuing revenue or general obligation tax increment bonds to refinance the Bluff Block tax increment revenue notes. The City will consider issuing General Obligation Tax Increment Bonds subject to the following conditions, • it is determined that the construction of the Bluff project will not occur without the issuance of the bonds; • the principal amount of the bonds will not exceed the amount of tax increment generated by the Bluff project; • bonds will not be issued for the Jackson project. • bonds will not be issued until the construction financing closes on the Bluff project; • personal guarantees of shortfall in tax increments will be required from principals of MetroPlains or MetroPlains' parent company, MetroPlains Properties, Inc. if determined by Ehlers and Associates to have sufficient net worth and asset liquidity; • no profit can be taken out of the Bluff project by MetroPlains until the actual market value of the completed Bluff project is determined and the actual amount tax increments generated by the Bluff project is established; • if tax increments are less than expected,developer profit will be used to pay the debt service on the bonds; • minimum sale prices established for the Bluff housing units cannot be changed without HRA consent. 3 1643076v