5.1. HRSR 12-06-2004 - Laserfiche WebLink

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ARTICLE V TAX INCREMENT ASSISTANCE; DEVELOPER PAYMENTS Section 5.1 Creation of Tax Increment District and Amendment of Tax Increment Financing Plan. The City has taken all necessary actions to create and establish the Tax Increment District. The Developer shall pay to the City, upon execution of this Agreement, all out of pocket costs and expenses of the City, including fees of Briggs and Morgan, Professional Association and Ehlers & Associates, incun-ed in connection with this Agreement and the creation of the Tax Increment District to the extent those fees exceed the payments previously made by the Developer. Section 5.2 Issuance of Tax Increment Revenue Note. (a) The City shall reimburse the Developer for the Eligible Costs actually incurred and paid by the Developer in an amount up to the Reimbursement Amount.(as defined below) through the issuance of the City's Tax Increment Revenue Note in substantially the form attached to this Agreement as Exhibit E, subject to the following conditions: (i) The Note shall be dated, issued and delivered when requested by the Developer but not prior to the Closing on the Jackson Block Property and the closing on the Construction Loan for the Bluff Block Development. The principal amount is currently estimated to be $3,093,563, but the actual principal amount of the Tax Increment Revenue Note shall be determined at the time the Tax Increment Revenue f Note is issued based on the gap in Funding determined according to the updated estimated sources and uses statement delivered by the Developer at the time issuance of the Tax Increment Revenue Note is requested and to be attached as Exhibit J hereto (the "Reimbursement Amount"). ' The principal amount may be reduced as provided in Section 5.3. The City makes no assurances that the Pledged Tax Increment will be sufficient to pay the entire principal of and interest on the Tax Increment Revenue Note. (ii) No interest shall accrue on the principal amount of the Tax Increment • Revenue Note prior to the date the Developer has proved to the City that it has incurred and paid Eligible Costs in an amount equal to the Reimbursement Amount. The unpaid principal amount of the Tax Increment Revenue Note shall bear simple non- compounding interest from the date the Developer has proved to the City that it has incurred and paid Eligible Costs in an amount equal to the Reimbursement Amount, at 6.50% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. (iii) The principal amount of the Note and the interest thereon shall be payable solely from the Pledged Tax Increment which is hereby pledged to the payment of the Tax Increment Revenue Note. (iv) On each Payment Date and subject to the provisions of the Tax Increment Revenue Note, the City shall pay, against the principal and interest outstanding on the • • 1674205v8 26