Deferred Developer Fee Clause Samples
A Deferred Developer Fee clause outlines the agreement that a portion of the developer's fee will be postponed and paid at a later date, rather than upon project completion. Typically, this deferred amount is paid from future project revenues or upon achieving certain financial milestones, such as project stabilization or refinancing. This clause helps manage cash flow during development by reducing immediate financial outlays and aligns the developer’s interests with the long-term success of the project.
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Deferred Developer Fee. Owner agrees to defer its receipt of a portion of the Developer Fee, in the amount of $600,000 (the “Deferred Developer Fee”), which amount is subject to adjustment by the Mayor in accordance with the City Note. The Deferred Developer Fee constitutes that portion of the Developer Fee to be paid to Owner from Borrower’s Share of Residual Receipts, with the balance of the Developer Fee in the amount of $1,400,000 payable to Owner during construction of the Project, in accordance with the following schedule of disbursements or pursuant to the Construction Lender’s schedule of disbursements, it being agreed that the schedule of disbursement to be followed for each milestone set forth below shall be whichever schedule of disbursement (City’s or Construction Lender’s) is more restrictive at each such milestone such that the following schedule of disbursements is the maximum disbursement of fees at each milestone:
i. Up to $420,000 upon Construction Closing;
ii. Up to $300,000 upon Completion;
iii. Up to $827,859 upon Conversion; and
iv. The balance upon the last equity installment.
Deferred Developer Fee. No interest may be charged or collected on the deferred developer fee (referred to as the Development Fee in the Partnership Agreement).
Deferred Developer Fee. Borrower agrees to make payments towards the Deferred Developer Fee according to the terms and conditions in Section 1.2.2 of the Note.
Deferred Developer Fee. Payment of a portion of the Developer Fee shall be deferred through completion of the Project (“Deferred Developer Fee”), with the balance of the Developer Fee payable to Developer during construction of the Project, in accordance with the following schedule of disbursements: i. 25% upon Closing; ii. 25% upon 50% Completion of construction of Improvements;
Deferred Developer Fee. [insert]
Deferred Developer Fee. Any portion of the Developer Fee, as set forth in the Project Budget in an amount not to exceed $375,000, which is not paid from other Project sources and must be deferred and paid to the extent available from (i) the gross cash flow of the Project; (ii) Cost Savings pursuant to the paragraph entitled “Cost Savings” of Section 2.2.b of this Method of Financing; or (iii) Additional Proceeds pursuant to the paragraph entitled “Additional Proceeds” of Section 2.2 .b of this Method of Financing.”