Common use of Developer Contribution Clause in Contracts

Developer Contribution. The Developer agrees that it shall contribute the Developer Contribution to the School District to be used as determined by the Board. As used in this Section 5, the “Developer Contribution” shall be equal to fifty percent (50%) of the amount of the School District's portion of the real property taxes exempted for each parcel pursuant to the TIF Ordinance in the first year that the value of the Improvements as completed first appears on the tax duplicate for such Parcels (the “First Year Exemption”), net of TIF Revenue Payments to be paid to the School District pursuant to Section 2 for the first tax year for which such amounts would be payable (the “First Year TIF Revenue Payments”). Inasmuch as the First Year Exemption will not appear on the tax duplicate prior to the closing of construction financing for the Phase I Development (and First Year TIF Revenue Payments will not be known), the Developer shall provide an estimate of such First Year Exemption (the “Estimated Exemption”) and the First Year TIF Revenue Payments for the Phase I Parcels (collectively, the “Estimated Developer Contribution”) to the School District not later than five (5) business days prior to the closing of construction financing. The Estimated Developer Contribution shall be paid as follows: (a) Seven Hundred Fifty Thousand Dollars ($750,000) shall be paid to the School District within thirty (30) days after the passage of a TIF Ordinance by the City following the acquisition of the Adjacent Site by the City, provided however, that in no event shall the payment be due later than October 15, 2020; and (b) The balance of the Estimated Developer Contribution shall be paid to the School District upon closing of construction financing for the Phase I Development. A sample Calculation of Developer Contribution is attached hereto and incorporated herein by reference as Exhibit A. When the full value of the Phase I Improvements first appears on the tax duplicate for the Phase I Parcels, the Developer shall compute the exact amount of the First Year Exemption and the TIF Revenue Payments for the Phase I Parcels and provide that computation to the School District not later than February 28 of the calendar year in which the exact amount of the Developer Contribution is determined. If the Estimated Developer Contribution was greater than the exact amount of the Developer Contribution, the difference between the amount paid and the Estimated Developer Contribution shall be credited to the Developer against future payments due to the School District or, if no future payments are expected, refunded to the Developer not later than April 30 of the calendar year in which the exact amount of the Developer Contribution is determined. If the Estimated Developer Contribution was less than the exact amount of the Developer Contribution, the Developer agrees to pay to the School District an amount equal to the difference between the amount paid and the Developer Contribution not later than April 30 of the calendar year in which the exact amount of the Developer Contribution is determined. The Developer covenants and agrees that the Developer or its assignees will invest at least Seventy-Five Million Dollars ($75,000,000) in Phase I of the Development, including the value of the Phase I Parcels, the costs of demolition and environmental remediation, and improvements to the Phase I Parcels. With respect to subsequent exemptions of Future Phase Parcels, the Developer shall pay the Developer Contribution to the School District based on an Estimated Exemption not later than the closing of construction financing for each Future Phase Parcel, and the Developer and the School District shall calculate the Developer Contribution based on the exact amount of the First Year Exemption and the TIF Revenue Payments as provided in the preceding paragraph; provided, however that if the Estimated Developer Contribution related to the last-to-be-developed Parcel described in a Future Phase TIF Ordinance is greater than the First Year Exemption for that Parcel, the School District shall refund to the Developer the amount of overpayment not later than April 30 of the calendar year in which the exact amount of the First Year Exemption for that Parcel is determined.