County’s Affordable Housing Requirement. The City agrees to satisfy the County’s condition to the Project Area Budget as set forth in subparagraph (2)(d) of the TEC Resolution, to the effect that the City will provide or cause to be provided within the Holladay city limits 100 units of affordable housing at or below 80% Area Median Income (AMI) by the end of the ten (10) year period required by the TEC Resolution. The TEC Resolution is attached hereto as Attachment No. 6. In the event that the 100 units have not been constructed by the beginning of the eighth (8th) year of such ten (10) year period, the Developer shall have the right, but absolutely no obligation, upon written notice to the City, to construct or otherwise acquire or provide some or all of the additional residential units necessary to satisfy the 100-unit requirement. Any funds expended by the Developer to acquire land outside of the Site, plan for and construct, or otherwise acquire, any such affordable residential units within the Holladay city limits (including without limitation all “hard” and “soft” costs of acquisition, renovation and development) shall be repaid by the City to the Developer within a reasonable period following written notice from the Developer, together with interest from the date expended by Developer until repaid by the City at the rate of ten percent (10%) per annum. Any such notice shall include invoices, check copies and other reasonable verification of the amounts expended or incurred. In addition, the City shall indemnify and hold the Developer harmless from and against all claims, losses and damages experienced by the Developer in the event that the City fails to satisfy its obligations pursuant to this Section 7.5 and Attachment No. 6, even if the Developer engages in activities to construct or otherwise acquire or provide some of the residential units required. Without limiting the generality of the foregoing, regardless of whether the Developer engages in any effort to contribute to the satisfaction of the City’s affordable housing obligation (and so long as the Developer or any Affiliate makes. its own required contributionexpenditure of $1.5 million to affordable housing as required by Section 3.2(bB)) if the Subsidy received by the Developer is reduced due to the City’s failure to meet its obligations under the TEC Resolution, the City shall be liable to Developer for the full amount of such reduction.
