11-26 Ordinance Authorizing Payments in Lieu of Taxes (PILOT) for Heritage Trails South Bend, LP (Substitute)

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Section 2.3. The obligation of the Owner to pay the Annual In Lieu of Amounts shall be subordinate to the obligations of the Owner with respect to the Owner's obligation to make debt service payments on any financing which may now or in the future be secured by a mortgage on the Property. The City agrees to execute whatever documents any lender to the Owner now or in the future may require which are commercially reasonable in order to confirm the foregoing subordination. Section 2.4. The City shall have the right to enforce the payment of all PILOTs when due, including all penalties, costs, and expenses imposed under Indiana Code§ 6-1.1-22-1, et. seq., and Indiana Code § 6-1.1-37-1, et. seq., or any statute which amends or replaces them for delinquent PILOTs, in the same manner as the City enforces the obligations of non-exempt taxpayers. Section 3 Term. Section 3.1. Except as otherwise provided in Section 4, the PILOT Agreement and applicable PILOTs required hereunder shall continue for a period of fifteen (15) years beginning with January 1 of Year 1 and expiring on December 31 of the fifteenth year thereafter(the"Initial Term"). The Initial Term may be extended by a mutual,written agreement of the Parties. Section 4. Termination. Section 4.1. City or Owner may terminate this PILOT Agreement at any time upon a material breach of this PILOT Agreement or failure to perform any term of this PILOT Agreement by the other, unless such material breach or failure is cured within thirty (30) days after written notice is given to the party in material breach;provided,however,that if any such claimed material breach or failure is of a nature that it cannot be cured within thirty (30) days, a non-breaching party shall not have the right to terminate this PILOT Agreement as long as the party in material breach is diligently pursuing appropriate action to cure the material breach or failure within a total of forty-five (45) days if such action was commenced within thirty (30) days after the giving of notice of the material breach or failure. Section 4.2. Neither City nor Owner shall have any further obligations not enumerated in this PILOT Agreement. Upon the expiration or termination of this PILOT Agreement, neither City nor Owner shall have any further obligations hereunder except for those obligations accruing prior to the date of termination and those post-termination obligations expressly enumerated in this PILOT Agreement. Section 5. General Provisions. Section 5.1. Extended Use Agreement. Prior to Year 1, the Owner will execute and record the Extended Use Agreement. Section 5.2. Captions; Incorporation and Exhibit. The captions and headings of various Sections and Exhibits referenced herein are for convenience only and are not to be considered as defining or limiting in any way the scope or intent of the provisions hereof. 4