37-26 Authorizing the City to Fund Its Taxable Economic Development Revenue Note, Series 2026 (Beacon Heights Project) and Approving and Authorizing Other Actions in Respect Thereto

Home Browse Search

to finance and/or reimburse Project costs, in tending to overcome insufficient employment opportunities,insufficient diversification of industry and lack of adequate housing,are greater than the cost of public works or services (as that phrase is used in the Act) which will be required by the Project; and, therefore,that the financing of a portion of the Project by the making the Loan to the Developer under the Act: (i) will be of benefit to the health and general welfare of the City; and(ii)complies with the Act. SECTION II. Approval of Financing. The proposed financing of the Project by the funding of the Loan to the Developer under the Act, in the form that such financing was approved by the Commission, is hereby approved. SECTION III. Terms of the Loan. (a) A portion of the costs of the Project will be funded by the Loan to the Developer on a draw basis (each draw on the Loan, a "Draw"). The City shall fund the Loan on a draw basis in the aggregate principal amount not to exceed One Million Two Hundred Fifty Thousand Dollars ($1,250,000), from River West TIF Revenues then on deposit in the allocation fund for the Allocation Area,and made available by the Redevelopment Commission to the City for the purposes of making the Loan to the Developer under the Act and the terms of the Loan Agreement. The Loan shall (i)mature no later than December 31,2041, on the date set forth in the final Loan Agreement (the"Maturity Date"), (ii) bear no interest, except as provided herein, and (iii) be secured by the pledge of an unsecured promissory note of the Developer. Subject to the Unavoidable Delay provisions of the Loan Agreement, the principal of each outstanding Draw on the Loan may be forgiven, in the sole discretion of the City, following the expiration of the [Qualified Project Period] (as defined in the Loan Agreement)and subject to the conditions contained in Section 4.3 of the Loan Agreement. In the event that the Developer abandons the Project or otherwise fails to proceed to substantially complete the Project as required by the Loan Agreement and the Development Agreement between the Redevelopment Commission and the Developer (the "Development Agreement"), the repayment of any outstanding amount of the Loan(the"Outstanding Amount")will be on a date not later than thirty (30) days from the date when the City's Department of Community Investment, on behalf of the City,provides written notice to the Developer that, in its sole discretion,it has determined that the Developer has abandoned or failed to proceed with the Project as required by the Loan Agreement and the Development Agreement (the date of such written notice being the "Trigger Date"). Interest will begin to accrue on the Outstanding Amount beginning on the Trigger Date at the Prime Rate (as defined in the Loan Agreement) plus three percent (3.0%) until the Outstanding Amount is fully paid by the Developer. In the event that the Loan is forgiven, it is hereby acknowledged that the consideration received by the City for the Loan being forgiven is the completion of the Project by the Developer and the economic benefits resulting to the City therefrom. (b) The Loan does not and shall never constitute an indebtedness of,or a charge against the general credit or taxing power of,the City. Forms of the Financing Agreements are before this meeting and are by this reference incorporated in this Ordinance, and the Clerk of the City is hereby directed, in the name and on behalf of the City, to insert them into the minutes of the Common Council and to keep them on file. SECTION IV. Execution and Delivery of Financing Agreements. The Mayor, the Clerk and the Controller of the City are hereby authorized and directed, in the name and on behalf 3