Common use of Eligible Development Expenses Clause in Contracts

Eligible Development Expenses. A. Payment of all Eligible Development Expenses shall be deferred until Completion of the Project, or such other time according to the terms of this Agreement, at which time the City shall pay the City’s Portion and the Developer shall pay the Developer’s Portion to the recipients of such Eligible Development Expenses, in accordance with the terms and conditions set forth in this Paragraph 1. B. At the time Developer obtains each building permit for the Project, Developer shall provide the City with a guaranty, cash escrow, letter of credit, or other security for the payment of all Eligible Development Expenses that would be due (but for the deferment set forth in Paragraph 1(A)) as a condition to issuing such building permit (“Security”). i. If Developer does not pay the entire Developer’s Portion when due in accordance with this Agreement, the City shall send Developer written notice thereof (“Nonpayment Notice”). If Developer does not cure such failure within 10 business days after receipt of such Nonpayment Notice, then the City may collect upon the Security in an amount equal to the past due amount of Developer’s Portion, which shall be the City’s sole and exclusive remedy for such failure. ii. If the Project is Commenced but Developer ceases work on the Project for more than 120 consecutive calendar days (subject to Force Majeure Events) and the Project is not then Completed, the City shall send the Developer written notice thereof (“Cessation Notice”). If Developer does not recommence construction of the Project within 30 calendar days after receipt of such Cessation Notice, then the Developer’s Portion shall be deemed to be 100% of the Eligible Development Expenses for the Project, and the City may collect upon the Security in an amount equal to the past due amount of Developer’s Portion, which shall be the City’s sole and exclusive remedy for such failure. iii. Upon payment of the entire Developer’s Portion for the Project, the Security shall be automatically and forever released and, if applicable, all funds remaining in the Security shall be immediately paid to Developer. The Authority shall have no right in or to the Security or to bring or join any claims against Developer for failure to pay the Eligible Development Expenses. C. The City’s obligation to pay the City’s Portion shall be contingent upon satisfaction of the following conditions: i. Developer must Commence the Project within 18 calendar months after the Effective Date (“Commencement Deadline”), and the Project must be Completed within 24 calendar months after the date of Commencement (“Completion Deadline”). Developer may request an extension of either the Commencement Deadline or the Completion Deadline by delivering a written request for the same to the City Manager, which extension may be granted in the City’s discretion, which discretion will not be unreasonably withheld. ii. Developer shall have Completed the Project in substantial compliance with the Design Standards. The City’s issuance of a Building Permit shall be deemed conclusive evidence that the proposed design is in compliance with this requirement. Once a Certificate of Occupancy has been issued, the Developer shall be deemed to have complied with this requirement in its entirety. D. Provided Developer has satisfied the conditions set forth in Paragraph 1(D), the City shall pay the City’s Portion out of the Redevelopment Assistance Fund, according to the following schedule: i. If the Project Costs exceed $5,000,000, the City’s portion will equal 25% of the Eligible Development Expenses. ii. If the Project Costs exceed $10,000,000, the City’s Portion will equal 50% of the Eligible Development Expenses. iii. If the Project Costs exceed $20,000,000, the City’s Portion will equal 75% of the Eligible Development Expenses. iv. If the Project Costs exceed $30,000,000, the City’s Portion will equal 100% of the Eligible Development Expenses. v. The percentage of the City’s Portion shall not increase proportionately for any increment between the dollar amounts set forth in the prior subparagraphs 1.D(i) through (iv). vi. Notwithstanding the foregoing, the City shall not be obligated to pay any Eligible Development Expenses in excess of the Cap Amount.

Eligible Development Expenses. A. Payment of all Eligible Development Expenses shall be deferred until Completion of the Project, or such other time according to the terms of this Agreement, at which time the City shall pay the City’s Portion and the Developer shall pay the Developer’s Portion to the recipients of such Eligible Development Expenses, in accordance with the terms and conditions set forth in this Paragraph 1. B. At the time Developer obtains each building permit for the Project, Developer shall provide the City with a guaranty, cash escrow, letter of credit, or other security for the payment of all Eligible Development Expenses that would be due (but for the deferment set forth in Paragraph 1(A)) as a condition to issuing such building permit (“Security”). i. If Developer does not pay the entire Developer’s Portion when due in accordance with this Agreement, the City shall send Developer written notice thereof (“Nonpayment Notice”). If Developer does not cure such failure within 10 business days after receipt of such Nonpayment Notice, then the City may collect upon the Security in an amount equal to the past due amount of Developer’s Portion, which shall be the City’s sole and exclusive remedy for such failure. ii. If the Project is Commenced but Developer ceases work on the Project for more than 120 consecutive calendar days (subject to Force Majeure Events) and the Project is not then Completed, the City shall send the Developer written notice thereof (“Cessation Notice”). If Developer does not recommence construction of the Project within 30 calendar days after receipt of such Cessation Notice, then the Developer’s Portion shall be deemed to be 100% of the Eligible Development Expenses for the Project, and the City may collect upon the Security in an amount equal to the past due amount of Developer’s Portion, which shall be the City’s sole and exclusive remedy for such failure. iii. Upon payment of the entire Developer’s Portion for the Project, the Security shall be automatically and forever released and, if applicable, all funds remaining in the Security shall be immediately paid to Developer. The Authority shall have no right in or to the Security or to bring or join any claims against Developer for failure to pay the Eligible Development Expenses. C. The City’s obligation to pay the City’s Portion shall be contingent upon satisfaction of the following conditions: i. Developer must Commence the Project within 18 calendar months after the Effective Date (“Commencement Deadline”), and the Project must be Completed within 24 28 calendar months after the date of Commencement (“Completion Deadline”). Developer may request an extension of either the Commencement Deadline or the Completion Deadline by delivering a written request for the same to the City Manager, which extension may be granted in the City’s discretion, which discretion will not be unreasonably withheld. ii. Developer shall have Completed the Project in substantial compliance with the Design Standards. The City’s issuance of a Building Permit shall be deemed conclusive evidence that the proposed design is in compliance with this requirement. Once a Certificate of Occupancy has been issued, the Developer shall be deemed to have complied with this requirement in its entirety. D. Provided Developer has satisfied the conditions set forth in Paragraph 1(D), the City shall pay the City’s Portion out of the Redevelopment Assistance Fund, according to the following schedule: i. If the Project Costs exceed $5,000,000, the City’s portion will equal 25% of the Eligible Development Expenses. ii. If the Project Costs exceed $10,000,000, the City’s Portion will equal 50% of the Eligible Development Expenses. iii. If the Project Costs exceed $20,000,000, the City’s Portion will equal 75% of the Eligible Development Expenses. iv. If the Project Costs exceed $30,000,000, the City’s Portion will equal 100% of the Eligible Development Expenses. v. The percentage of the City’s Portion shall not increase proportionately for any increment between the dollar amounts set forth in the prior subparagraphs 1.D(i) through (iv). vi. Notwithstanding the foregoing, the City shall not be obligated to pay any Eligible Development Expenses in excess of the Cap Amount.