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units shall be used only for senior housing. Additionally, in order to maximize the length <br /> of time that the City can exert control over the use of the Senior Housing for its intended <br /> purpose, the City intends to purchase Lot 2, Block 1, Orono Woods Addition from the <br /> Developer prior to the commencement of construction for the sum of$1 (one dollar) and <br /> other good and valuable considerations. The City will then lease said Lot 2 to the <br /> Developer/Building Owner for a period of forty(40)years,equivalent to the proposed HUD <br /> bond repayment period. The lease shall include the following general terms: <br /> 1. The lease shall be written to prohibit rental to other than seniors during the <br /> term of the lease. <br /> 2. The City will defer certain up-front development charges for the term of the <br /> lease, such charges to include Sewer and Water Connection Fees in the <br /> amount of$40,838 and Park Dedication Fees in the amount of$161,200 that <br /> would otherwise be due at the time of development. <br /> 3. At the end of the 40-year lease term, the City will sell Lot 2 back to the <br /> Developer/Owner for the sum of$1. The deferred amounts plus 5% interest <br /> compounded annually shall be due and payable to the City at that time, <br /> except that the Developer/Owner may further extend the deferral period in 5- <br /> year increments by contract with the City. <br /> 4. In the event that the City is unable to acquire Lot 2,it is the City's intent that <br /> a covenant be placed on Lot 2 that provides for the same use limitations, <br /> deferrals and extension as represented immediately above. <br /> 16. Developer Representations and Covenants. The Developer makes the following <br /> representations and covenants: <br /> (a) The Developer has the legal authority and power to enter into this Agreement. <br /> (b) The Developer reasonably expects to obtain financial resources which, when <br /> combined with the assistance hereunder,will be sufficient to enable the completion <br /> of the Improvements. <br /> (c) The Developer will, subject to the requirements of Section B - Installation and <br /> Maintenance of Improvements hereof, construct, operate and maintain the <br /> Improvements in accordance with the terms of this Agreement,the requirements of <br /> the TIF District and all local, state and federal laws and regulations, and will <br /> construct or pay the costs of construction of any site improvements, utilities, <br /> landscaping, stormwater management facilities, roads, parking facilities which are <br /> necessary in connection with the construction and such improvements. <br /> (d) At such time or times as may be required by law,the Developer will have complied <br /> with all local, state and federal environmental reviews, licenses, and will be in <br /> compliance with the requirements of federal, state, and local authority. <br /> Page 7 of 14 <br />