10-08-2001 Council Packet - Laserfiche WebLink

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During the term of the TIF funding as described in this document, the Developer shall limit the rental price of 20% of the units per the TIF AgieemenU and all 62 units shall be used only for housing of seniors age 62 and older, with rental preference given to Orono residents, per the terms and conditions of the "Senior Housing Restriction" and the "Orono Preference Requirement" as stated within that certain document entitled "Development Agreement Relating to Orono Woods Apartments (Including Tax Increment Financing District No. 1-1) Between City of Orono. Orono Housing and Redevelopment Authority and Orono Senior Housing. LLC" (hereinaAer the "Development Agreement"). In order to ma.ximize the length of time that the Senior Housing will serve its intended purpose, the Citv will defer Sewer and Water Connection Fees in the amount of S40.838 and Park Dedication Fees in the amount of $161,200 that would otherwise be due at the time of development of the Senior Housing. Such fees (hereinaAer "defencd improvement costs") shall be payable only in the event that the Developer violates the "Senior Housing Restriction" as set forth in the "Development Agreement". In that event such fees shall be immediately due and payable together with interest on the deferred amounts computed at the rate of 7% per atumm from the dale of said "Development Agreement". The deferred amounts plus 7% interest compounded annually shall be due and payable to the City at the termination of the 99 year lease, except that the Developer/Owner may Airther extend the deferral period in 5-ycar increments by contract with the City. Devclotxrr Renresentations and Covenants. ITie Developer hereby makes the following rcprc.sentations and covenants: (a) The Developer has the legal authority and power to enter into this Agreement. The Developer reasonably expects to obtain financial resources which, when combined with the assistance hereunder, will be sufficient to enable the completion of the Improvements. The Developer will, subject to the requirements of Section B - Installation and Maintenance of Improvements hereof, construct, operate and maintain the Improvements in accordance w ith the terms of this Agreement, the requirements of the TIF District and all local, state and federal laws and regulations, and will construct or pay the costs of construction of any site improvements, utilities. 1 Page 9 of 17