Future Agreements and Bonds; Future Zoning; Purchase of Phase 1 and Phase 2 Clause Samples

Future Agreements and Bonds; Future Zoning; Purchase of Phase 1 and Phase 2 a. Notwithstanding any other terms or provisions of this Agreement, this Agreement shall automatically terminate in the event the following conditions are not satisfied during the Inspection Period (collectively, the “Pre-Conditions to Development Agreement”): i. The Parties must mutually agree upon and establish a Municipal Improvement District (if required by the Financing Agreement), a Financing Agreement and any other related agreements and approvals required by law. As a condition of the Financing Agreement, the Parties agree that the City will require payment and performance bonds from the Developer or its contractors, as well as any other requirements necessary to assure the City and its bondholders that: (1) Development of Phase 1 and Phase 2 shall create enough tax increment, in conjunction with the Developer Contribution, to fund debt service on any bonds that are issued to construct the Necessary Infrastructure Facilities described under Paragraph 17; and (2) Development of the remaining portion of the Real Property shall create enough tax increment, in conjunction with the Developer Contribution, to fund debt service on any additional TIF bonds that are issued to construct the Additional Infrastructure Facilities. In addition, the Parties anticipate that the Financing Agreement shall address and deal with, among other matters, (i) the timing and necessity of the creation of a Municipal Improvement District,