Common use of Deferred Developer Fee Clause in Contracts

Deferred Developer Fee. Owner agrees to defer its receipt of a portion of the Developer Fee, in the amount of $600,000 (the “Deferred Developer Fee”), which amount is subject to adjustment by the Mayor in accordance with the City Note. The Deferred Developer Fee constitutes that portion of the Developer Fee to be paid to Owner from Borrower’s Share of Residual Receipts, with the balance of the Developer Fee in the amount of $1,400,000 payable to Owner during construction of the Project, in accordance with the following schedule of disbursements or pursuant to the Construction Lender’s schedule of disbursements, it being agreed that the schedule of disbursement to be followed for each milestone set forth below shall be whichever schedule of disbursement (City’s or Construction Lender’s) is more restrictive at each such milestone such that the following schedule of disbursements is the maximum disbursement of fees at each milestone: i. Up to $420,000 upon Construction Closing; ii. Up to $300,000 upon Completion; iii. Up to $827,859 upon Conversion; and iv. The balance upon the last equity installment.

Deferred Developer Fee. Owner agrees to defer its receipt of a portion of the Developer Fee, in the amount of $600,000 300,000 (the “Deferred Developer Fee”), which amount is subject to adjustment by the Mayor Agency Executive Director in accordance with the City Agency Note. The Deferred Developer Fee constitutes that portion of the Developer Fee to be paid to Owner from Borrower’s Share of operating revenues, before calculating Residual Receipts, with the balance of the Developer Fee in the amount of $1,400,000 830,000 payable to Owner during construction of the Project, in accordance with the following schedule of disbursements or pursuant to the Construction Lender’s schedule of disbursements, it being agreed that the schedule of disbursement to be followed for each milestone set forth below shall be whichever schedule of disbursement (CityAgency’s or Construction Lender’s) is more restrictive at each such milestone such that the following schedule of disbursements is the maximum disbursement of fees at each milestone: i. Up to $420,000 20% upon Construction Closing; ; ii. Up to $300,000 upon Completion30% no sooner than 50% of disbursement of the Agency Loan in accordance with the Disbursement Agreement (Attachment No. 16 to the OPA); iii. Up to $827,859 upon Conversion; and iv. The balance upon the last equity installment.