TDD Financing Sample Clauses
The TDD FINANCING clause outlines the terms and conditions under which financing is provided for a project or transaction, specifically in the context of a Tax Increment Financing (TIF) District Development (TDD). This clause typically details the sources of funds, repayment obligations, and any security interests or guarantees required from the parties involved. For example, it may specify how incremental tax revenues will be used to repay bonds or loans issued to fund infrastructure improvements within the development district. The core practical function of this clause is to clearly define the financial framework and responsibilities for all parties, thereby reducing uncertainty and ensuring that the project is adequately funded and financially sustainable.
TDD Financing. A portion of the costs of the Project would be paid for by the existing 1% add-on TDD sales tax that commenced collection on April 1, 2018, and will continue for 22 years from that date. The TDD was a part of the Original Development Agreement and was used to finance the interchange that was constructed pursuant to the City's agreement with the Kansas Department of Transportation ("KDOT"). KDOT will have access to the first $11M of TDD revenue for repayment of its costs in funding the interchange. The Developer will have access to TDD revenues thereafter, up to an amount equal to the TDD Cap. The Developer's TDD Cap is proposed to be reduced from $40.1M to
a. the TDD collection period ends twenty-two (22) years from the date that the TDD sales tax is first imposed (in this case ending on April 1, 2040);
b. reimbursement would be limited to TDD-eligible expenses specifically agreed upon and shown on the Project Budget and as certified in accordance with terms described in the proposed amended and restated Agreement;
c. upon Developer's Substantial Completion of the Minimum Improvements for Phase 1 of the Project, Developer will have access to $21M of the TDD revenues; and upon Developer's Substantial Completion of the Minimum Improvements for Phase 2 of the Project, Developer will have access to the balance of the TDD revenues up to the $35M TDD Cap; and; and
d. in Section 8.05, Developer would also be limited by an Aggregate Public/Private Ratio that would, after factoring out the STAR Bond costs and STAR Bond proceeds, limit Developer's costs being paid with TDD and CID financing to an amount that never exceeds 30% of the aggregate project costs. Also, the Agreement contemplates what might happen if - for one reason or another - the Multi-Sport Complex is not developed and delivered by Developer. Essentially, the Agreement says that if that happens, we largely revert to the financing structure in the Original Development Agreement: Developer can still get $21M of TDD financing and EDRBs for the exemption of sales taxes for construction materials if Developer completes the Minimum Improvements for Phase 1 and Phase 2, plus an additional 88,000 square feet of New Retail Space by December 31, 2028 (an extension of the previous deadline of December 31, 2026). This would represent a total Project that includes no less than 400,000 square feet of retail and entertainment space by Dec. 31, 2028. However, this would not include any STAR Bond or CID financing – bo...
TDD Financing. The costs of the TDD Improvements (the "TDD Improvement Costs") are specifically identified in the "TOTAL TDD USES" column on the Project Budget attached hereto as Exhibit N M and will generally be funded by private equity and debt ("Private Funds"). Subject to the terms and conditions of this Second Amended and Restated Agreement, the TDD Improvement Costs shall be reimbursed in part with TDD Sales Tax Proceeds. Developer, using Private Funds, will initially advance all of the costs for the design, development and construction of the TDD Improvements (excluding the Interchange). Subject to the terms and conditions of this Second Amended and Restated Agreement, including without limitation, (a) the TDD Cap set forth in Section 4.04(b) below, (b) the TDD Administrative Fee, and (c) KDOT's rights to the first $11,000,000 of the TDD Sales Tax Proceeds as set forth in Section 4.04(a) below, Developer shall be reimbursed for eligible TDD Improvement Costs from and to the extent of the TDD Sales Tax Proceeds collected during the Term.
TDD Financing