Construction TOT Payment Clause Samples

Construction TOT Payment. If Owner does not commence construction of the Hotel Component by the date that is six (6) months from the earlier of (i) the date of securing building permits from the City, or (ii) the Building Permits Deadline described in Section 7.2 b. above, (“Commencement of Construction Deadline”), Owner shall pay to City, in addition to and not in lieu of any payment obligation of the Application TOT Payment and the Building Permits TOT Payment, Three Hundred Thousand Dollars ($300,000) (“Construction TOT Payment”) annually beginning by no later than ten (10) days after the Commencement of Construction Deadline and continuing on each anniversary of the Commencement of Construction Deadline another Construction TOT Payment for each year thereafter in which Owner fails to commence construction of the Hotel Component, or the prorated amount of such Construction TOT Payment until Owner commences construction of the Hotel Component. Should Owner fail to commence construction within two (2) years of the Commencement of Construction Deadline, the Construction TOT Payment obligation shall be imposed upon Owner’s failure to complete construction of the Hotel Component, measured at the time the Hotel Component is eligible for a certificate of occupancy, (“Completion Deadline”) such that the Construction TOT payment shall continue to apply until completion of construction, as described herein, rather than upon the Commencement of Construction Deadline. The Construction TOT Payment shall continue for nineteen (19) additional years from the date of the Commencement of Construction Deadline until Owner completes construction of the Hotel Component, as described herein, for a total potential Construction TOT Payments of Six Million Dollars ($6,000,000).