7.5 SR 06-17-2024 - Laserfiche WebLink

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development of the Development Property, including without limitation, payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the request to the City. The Certificate of Completion issued for the Project shall conclusively satisfy and terminate the agreements and covenants of the Developer in this Agreement solely with respect to construction of the Project. The issuance of a Certificate of Completion under this Agreement shall not be construed to relieve the Developer of any inspection or approval required by any City department in connection with the construction, completion or occupancy of the Project nor shall it relieve the Developer of any other obligations under this Agreement. Section 3.6 Purchase Price Note. (a) The purchase price to be paid to the City by the Developer in exchange for the conveyance of the Development Property is $1,378,020.60 (the "Purchase Price"). The Purchase Price shall be paid in cash from the Developer in the amount of $1.00 and a purchase price note from the Developer in the amount of $1,378,019.60 evidencing the Developer's obligation to repay a loan for a portion of the Purchase Price for the Development Property with interest (the "Purchase Price Note") in substantially the form attached hereto as Exhibit B. The Purchase Price Note shall accrue interest at the rate of 5.00% per annum. On each Payment Date, the City will credit against the principal amount of the Purchase Price Note plus accrued interest thereon at the rate of 5.00% per annum, the Purchase Price Note Pledged Tax Increment. (b) The City is pledging Purchase Price Note Pledged Tax Increment to repayment of the Purchase Price Note. The Developer has no right or interest in any Tax Increment. The City retains the right to use any other legally available City funds to prepay the principal of and interest on the Purchase Price Note on any date. Section 3.7 Agreement to Pay Purchase Price Note Pledged Tax Increment Shortfall. Annually on or before December 31 in the years 2026 through 2035, the City shall calculate whether the February and August payments of Purchase Price Note Pledged Tax Increment have been at or greater than the principal and interest due on the Purchase Price Note for that year, as shown on the amortization schedule attached to the Purchase Price Note. If, in the City's sole discretion, the Purchase Price Note Pledged Tax Increment has been less than the annual amount due under the Purchase Price Note for such year, the Developer shall pay an amount equal to the deficiency (a "Shortfall"). The Developer is obligated to pay a Shortfall within 15 days after receipt of a written notice from the City containing evidence of a Shortfall. The Developer shall deliver the Assessment Agreement to the City to guarantee the amount of Purchase Price Note Pledged Tax Increment and shall deliver the Security Documents to the City to guarantee performance of the Developer's obligation to pay any Shortfalls or to pay the Purchase Price Note as provided in this Agreement. Section 3.8 Energy Rebate. (a) [The City agrees to waive its applicable payment in lieu of taxes ("PILOT") from ERMU for the Project for two years (the "Energy Rebate"). ERMU will pay the applicable payment in lieu of taxes for the Project to the City on annual basis commencing on the first -year anniversary of the issuance of a Certificate of Completion by the City and continuing for a period of two years. Upon receipt of funds from ERMU, the City will pay the Energy Rebate to the Developer within 30 days of receipt thereof.] The Energy Rebate shall be provided to the Developer only upon the satisfaction of the following conditions: II EL185\77\951254.v6 Page 307 of 372