5.0. 6.0. 7.0. EDSR 07-12-1999 - Laserfiche WebLink

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FROM GRAY PLANT MOOT? MOOT? & BENNETT (#3) (FRI) 7. 9' 99 9:37/ST. 9:28/NO. 4261218754 P 21 (i) In the first year that Tax Increment is available, no payments shall be • made to Redeveloper under the Note until 50% of the Reserve Requirement is funded from Tax Increment available after payment of all other priority items; (ii) In the second and future years that Tax Increment is available, no payments shall be made to Redeveloper under the Note until 100% of the Reserve Requirement is funded from Tax Increment available after the payment of all other priority items. (c) In its sole discretion, with the consent of City, Authority may, but shall not be obligated to, use monies held as part of this Reserve Requirement to make Reimbursements (or reduce the Reserve Requirement or the funding formula applicable thereto). It is expected that any such decision, if made, would be based upon Authority's determination in its discretion that payment of the Bonds and Internal Loans is reasonably assured due to substantial development, prepayment of Special Assessments, likelihood of payment of unpaid Special Assessments and property taxes, and/or such other factors as Authority may deem appropriate. No such decision in any one year shall obligate Authority to make a similar decision in any future year. (d) This rolling security reserve for the Bonds is hereinafter referred to as the "Reserve Requirement," which is further defined in Section 1.1. Monies held as part of the Reserve Requirement will be used to pay debt service on the Bonds and/or the Internal Loans, when due, to the extent that available Special Assessments and Bond Tax Increments are • insufficient for such purposes. Upon payment of the Bonds and the Internal Loans (or security therefor acceptable to the Authority, as described above), monies released from the Reserve Requirement would then be available to make eligible Reimbursements. Section 3.8 Limitations. The parties to this Agreement acknowledge and agree that the expenditure of the Tax Increment is and shall be governed by the TIF Act. Section 3.9 Priority Items. (a) No payment will be made to Redeveloper unless there is Available Tax Increment with which to make the payment. Available Tax Increment is that Tax Increment received by the City which remains available after City and Authority have made payment of the Priority Items identified on Exhibit F to this Agreement,including: Priority#1: Administrative expenses Priority 42: State Auditor's deduction Priority#3: 1999$630,000 Improvement Bond Priority#4: estimated$775,000 Improvement Bond Priority#5: estimated $250,000 Public Improvement Internal loan • Priority#6: maximum $300,000 Land Write-down Internal loan -17-