10-08-2001 Council Packet - Laserfiche WebLink

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ARTICLE VI. TAX INCREMENT NOTE Section 6.1 iMiuince of Tax I ole. The Developer represents that it has incurred and will incur significant costs in acquiring the Development Property wliich are estimated to be at least S______. In consideration of this Agreement, the HRA agrees to reimburse up to $______of these costs, together with interest accruing thereon at 7.00% per annum, as provided in and subject to the provisions of the TIF Note substantially in the form of Exhibit C hereto. The lIRA shall issue the TIF Note and deliver the same to the Developer or the Developer’s designee, as registered owner of the TIF Note, contemporaneously with the execution and delivery of a warranty deed conveying the Development Property to the HRA. The I>cveloper covenants and agrees not to sell, transfer or convey the TIF Note without the express written consent of the HRA, which consent shall not be unreasonably withheld if the transferee executes and delivers to the HRA and the City an investment letter substantially in the form of Exhibit F hereto: provided, however, that the Developer may, without such consent, pledge or grant a security interest in the TIF Note to a lender as security for a loan. The Developer acknow ledges that neither the City nor the HRA make any represenuitions as to the ad^uacy of tax increments available to pay the TIF Note. The TIF Note shall be payable solely from tax increment from the TIF District received by the HRA to the e.\tent provided in Section 6.2 hereof and neither the City nor the HRA shall be liable on the TIF Note, nor shall the TIF Note be payable out of any funds or properties of the City or HRA e.xcept for said tax increment Section 6.2 Tax Increment Available for I iF Note. The Note shall be paid solely from tax increment from the TIF District os set forth in the TIF Note. Only the amounts specifically required to be paid thereon shall be due and payable, regardless of whether the TIF Note has been paid in full.