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11 <br />be solely at risk for any short fall between the actual service payment revenues allocated for <br />the debt service of the TIF Bond and the amount necessary to support the annual debt service <br />on the TIF Bond under its terms. <br />8) PROJECT SCHEDULE. Developer and City shall work together to prepare a schedule <br />detailing the timing of the Offsite Infrastructure Improvements, but the City acknowledges <br />that the Offsite Infrastructure Improvements shall be completed on or before the end of the <br />2005 construction season so they are completed by the Project tenant's proposed opening in <br />March, 2006. <br />9) FINANCING OF ONSITE EXTRAORDINARY EXPENSES. The parties hereby <br />acknowledge that, for the Project to occur, the Developer must incur substantial and <br />extraordinary expense not normally required in a project of this kind (the " Onsite <br />Extraordinary Expenses "). These Onsite Extraordinary Expenses include relocation of power <br />lines and gas lines, demolition and environmental remediation through dynamic compaction <br />of the former landfill site contained on the Project. The Onsite Extraordinary Expenses will <br />be financed, in part, with an Economic Development Commission Bond (the "EDC Bond ") <br />in an aggregate principal amount of not more than $1.73 Million plus the City's actual costs <br />involved in issuing the bond to pay for the Onsite Extraordinary Expenses. Developer <br />hereby agrees to purchase the EDC Bond or, in the alternative, Developer shall cause the <br />EDC Bond to be purchased by third party(ies). The repayment source for the EDC Bond <br />shall be the TIF generated by the Project, however Developer understands and agrees that it <br />shall be solely at risk for any short fall between the actual TIF revenues generated and the <br />Icamount necessary to support the annual debt service on the EDC Bond under its terms. <br />10) FINANCING GAP, BUDGET CAP AND TIF REVENUE CAP. The parties hereby <br />acknowledge that, at the time this MOU is entered into, it is projected that the Project will <br />generate approximately $3.7 Million in available TIF revenue proceeds ( "Estimated <br />Proceeds ") and that the costs budgeted to Offsite Infrastructure Improvements is estimated at <br />$1.97 Million and the costs budgeted to Onsite Extraordinary Expenses is estimated at <br />$2.432 Million for a combined estimated budget total of $4.402 Million ( "Budget Cap "). <br />The parties hereby acknowledge that, unless Project costs are reduced or the Actual Proceeds <br />generated are greater than the $3.7 Million Estimated Proceeds, there will be a shortfall <br />between the TIF revenue proceeds generated and the $4.402 Million that has been budgeted <br />to Offsite and Onsite improvements. Developer understands and acknowledges that it shall <br />be solely at risk for said shortfall (i.e. the difference between the $4.402 Million and $3.7 <br />Million). It is understood and agreed that Actual Proceeds generated shall be allocated: First <br />for payment of the $1.97 Million budgeted to Offsite Infrastructure Improvements, and <br />Second for payment of the $2.432 Million budgeted Onsite Extraordinary Expenses. In the <br />event that Actual Proceeds generated is greater than the Estimated Proceeds of $3.7 Million, <br />such excess shall be allocated: First to payment of Onsite Extraordinary Expenses up to the <br />$2.432 Million budgeted ( "TIF Revenue Cap ") and Second to the City for its sole use and <br />benefit. <br />11) PRIVATE INVESTMENT. Developer agrees to the following investment goals for the <br />project: <br />4 <br />F:\ HOME\ CGPEENE \WPData\Projects \SSDA\Anchor Project\MOU\Ver12.0403 ] 2.doc <br />