05.01 - Req for Tax Abatement-Oppidan, Public Hearing

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M an earlier date if an Event of Default occurs and the City rescinds or cancels this Agreement. The City shall reimburse the Developer for the costs identified in Section 3.1 through the issuance of the City's Abatement Note in substantially the form attached to this Agreement as Exhibit B, subject to the following conditions: (1) The Abatement Note shall be dated, issued and delivered when the Developer shall have demonstrated in writing to the reasonable satisfaction of the City that the Project is substantially completed and the Developer has incurred and paid the cost of the construction of the lift station and other public infrastructure as set forth in the CUP Development Agreement and demolition costs related to the Project, as described in and limited by Section 3.1 and shall have submitted paid invoices for such costs in an amount not less than the Reimbursement Amount. (2) The unpaid principal amount of the Abatement Note shall bear simple, non- compounding interest from the date of issuance of the Abatement Note, at 6.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30 -day months. (3) The principal amount of the Abatement Note and the interest thereon shall be payable solely from the Tax Abatements. (4) On each Note Payment Date and subject to the provisions of the Abatement Note, the City shall pay, against the principal and interest outstanding on the Abatement Note, Tax Abatements received by the City during the preceding 6 months. (5) The Abatement Note shall be a special and limited obligation of the City and not a general obligation of the City, and only Tax Abatements shall be used to pay the principal and interest on the Abatement Note. If, on any Note Payment Date, the Tax Abatements for the payment of the accrued and unpaid interest on the Abatement Note are insufficient for such purposes, the difference shall be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment Date there are Tax Abatements in excess of the amounts needed to pay the accrued interest then due on the Abatement Note. (6) The City's obligation to make payments on the Abatement Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement. (7) The Abatement Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the Abatement Note and the terms of this Section 3.6, the terms of the Abatement Note shall govern. The issuance of the Abatement Note pursuant and subject to the terms of this Agreement, and the taking by the City of such additional actions as bond counsel for the Abatement Note may require in connection therewith, are hereby authorized and approved by the City. 24105530 7