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ARTICLE VI. <br /> TAX INCREMENT NOTE <br /> Section 6.1 Issuance of Tax Increment Note. The Developer represents that it has <br /> incurred and will incur significant costs in acquiring the Development Property which are <br /> estimated to be at least $ $700,000. In consideration of this Agreement, the HRA <br /> agrees to reimburse up to $ approximately $700,000 of these costs, together with <br /> interest accruing thereon at 7.00%per annum, as provided in and subject to the provisions of <br /> the TIF Note substantially in the form of Exhibit C hereto. The HRA shall issue the TIF <br /> Note and deliver the same to the Developer or the Developer's designee, as registered owner <br /> of the TIF Note, contemporaneously with the execution and delivery of a warranty deed <br /> conveying the Development Property to the HRA. <br /> The Developer covenants and agrees not to sell, transfer or convey the TIF Note <br /> without the express written consent of the HRA, which consent shall not be unreasonably <br /> withheld if the transferee executes and delivers to the HRA and the City an investment letter <br /> substantially in the form of Exhibit F hereto; provided, however, that the Developer may, <br /> without such consent, pledge or grant a security interest in the TIF Note to a lender as <br /> security for a loan, including the trustee for the Housing Bonds. The Developer <br /> acknowledges that neither the City nor the HRA make any representations as to the adequacy <br /> of tax increments available to pay the TIF Note. <br /> The TIF Note shall be payable solely from tax increment from the TIF District <br /> received by the HRA to the extent provided in Section 6.2 hereof and neither the City nor the <br /> HRA shall be liable on the TIF Note, nor shall the TIF Note be payable out of any funds or <br /> properties of the City or HRA except for said tax increment. <br /> Section 6.2 Tax Increment Available for TIF Note. The Note shall be paid solely <br /> from tax increment from the TIF District as set forth in the TIF Note. Only the amounts <br /> specifically required to be paid thereon shall be due and payable, regardless of whether the <br /> TIF Note has been paid in full. <br /> 17 <br />