Chapter 380 Grant Clause Samples

Chapter 380 Grant. Phase IC)

Chapter 380 Grant. Consistent with the provisions of the Act and in consideration of the Project (defined below) and Grantee’s compliance with the obligations specified in the Grant Documents (defined below), City will pay Grantee an economic development grant in an amount not to exceed SEVENTY THOUSAND AND NO/100 DOLLARS ($70,000.00) (the “Grant”). Grantee’s subject facility is located at ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Road (“Facility”) in the city of Dallas, and the Property is graphically depicted in Exhibit A. Payment of the Grant shall be made in accordance with the obligations, terms, and conditions defined below. In addition, to be eligible for any payment, Grantee shall not otherwise be in default of this Agreement. During the Compliance Period, ▇▇▇▇▇▇▇’s failure to comply with the terms and conditions of the Agreement shall constitute a default under Section 4 of this Agreement. The Grant shall be not be paid until Grantee’s obligations, terms and conditions, as defined herein, are met.

Chapter 380 Grant. The City shall consider a separate economic development grant agreement (the “Chapter 380 Agreement”) pursuant to Chapter 380 to provide a grant to the Developer, on an annual basis, using fifteen percent (15%) of the City’s maintenance and operations ad valorem tax increment, any remainder of the City TIRZ Increment after application of the TIRZ Credit described in Section 5.2(a) above, and the ESD TIRZ Increment, if any (the “Chapter 380 Grant”). The Parties agree that the Chapter 380 Grant will be used to reimburse the costs of the Public Infrastructure and provide funding for incentive agreements with targeted tenants and users for the Project as agreed to by the City and the Developer. The City TIRZ Increment paid to the Developer pursuant to the 380 Grant shall not exceed the sum of $1,000,000 annually or $25,000,000 cumulatively for a term not to exceed 40 years and may be earned by the Developer subject to the performance criteria provided in the Chapter 380 Agreement (the “Chapter 380 Incentive Maximum”). The ESD TIRZ Increment shall not be applied toward the calculation of the Chapter 380 Incentive Maximum; however after the Chapter 380 Incentive Maximum has been reached, (i) the City and ESD shall no longer be obligated to place the revenues in a segregated TIRZ account for Chapter 380 incentives and those funds shall be the property of the City and the ESD, in proportion to their respective ownership of same, to be used by each entity in their sole and absolute discretion; and (ii) the TIRZ Revenues shall only be used for payment of administrative costs and expenses of the TIRZ and the payment of the TIRZ Credit (the “Authorized TIRZ Revenue Expenses”). All other excess TIRZ Revenues over and above the payment of the Authorized TIRZ Revenue Expenses, the City shall no longer be obligated to place the TIRZ Revenues in a segregated TIRZ account and the revenues shall be the property of the City, to be used by the City in its sole and absolute discretion.

Chapter 380 Grant. 3. The City will provide a Chapter 380 Economic Development grant equal to the actual hard costs of the 8-inch water line (i.e. labor and materials, excluding overhead or design costs) up to $265,000. The grant will be paid periodically, upon request by the Developer. Developer must have met the conditions set forth below in order to be eligible for a grant: a. Developer must not be in breach of this Agreement; b. City must have accepted all required public infrastructure; c. A certificate of occupancy must have been issued for the Property; d. All ad valorem taxes for the Property must have been paid; and e. The BCAD appraised value for the Property must be at least $5,032,250. 4. The grant payments will be equal to fifty percent (50%) of the tax revenue generated by the Increased Value of the Property. The Increased Value of the Property is the BCAD appraised value of the property (following issuance of one or more certificates of occupancy by the City), less the base value of $32,250. 5. Once the Developer has met the above conditions, and on an annual basis thereafter while this Agreement remains in effect, the Developer may submit a request for a grant payment to the City, along with copies of invoices from the contractor showing actual amounts paid. As a condition for reimbursement, Requests shall be made in the month of October, and shall be payable out of the taxes paid for that year only. The Developer must include a receipt from the Brazos County Tax Office showing that the taxes for the year have been paid. Failure to request reimbursement waives any right to a reimbursement out of that year’s taxes. 6. The City’s obligations under this Agreement are conditioned upon annual appropriation for same by the City Council.

Chapter 380 Grant. In accordance with Section 5.2(b), the City, pursuant to a separate economic development agreement between the Developer and the City (the “Chapter 380 Agreement”), shall provide a Chapter 380 Grant to the Developer, on an annual basis, on the terms and conditions to be negotiated by the Parties as set forth below. The Parties agree that the Chapter 380 Agreement shall provide that: (a) the Chapter 380 ▇▇▇▇▇ will only be used to reimburse the Developer for the actual costs of the Authorized Improvements not otherwise reimbursed with PID ▇▇▇▇ proceeds and provide funding for incentive agreements with targeted tenants and users for the Project as may be agreed to by the City and the Developer. (b) the Chapter 380 Grant and the Chapter 381 Grant shall not be used to provide funding and/or a financial incentive for any private improvement or vertical development owned or operated by the Developer. (c) the Chapter 380 ▇▇▇▇▇ paid to the Developer shall not exceed the sum of $1,000,000 annually or $25,000,000 cumulatively for a term not to exceed 40 years after the Effective Date of this Agreement (the “40 Year Term”) and may be earned by the Developer subject to the performance criteria provided in the Chapter 380 Agreement (the “Chapter 380 Incentive Maximum”). The ESD TIRZ Increment shall not be applied toward the calculation of the Chapter 380 Incentive Maximum; however, the annual ESD TIRZ Increment and the Chapter 381 Grant monies paid to the Developer will net against the outstanding amount of actual costs of Authorized Improvements eligible to be paid to the Developer that are not otherwise reimbursed from PID Bond proceeds. For example, if $30,000,000 is the amount of Authorized Improvements that the Developer is not otherwise reimbursed from PID Bond proceeds and the Chapter 380 Grant monies are $1,000,000, the ESD TIRZ Increment is $1,000,000 and the Chapter 381 Grant monies are $500,000, the remaining balance of money eligible to paid to the Developer by the City under the Chapter 380 Agreement is $27,500,000. Further, after the Chapter 380 Incentive Maximum has been reached, (i) the City and ESD shall no longer be obligated to place the revenues in a segregated TIRZ account for the Chapter 380 Grant and those funds shall be the property of the City and the ESD, in proportion to their respective ownership of same, to be used by each entity in their sole and absolute discretion; and (ii) the TIRZ Revenues shall only be used for payment of administrativ...

Chapter 380 Grant. Phase IA)