Industrial Revenue Bonds and Tax Abatement. Pursuant to K.S.A. 12-1740 to 12-1749d, inclusive, as amended (the "Act"), the City (sometimes described in this Article VIII as the "Issuer") is authorized to construct and improve certain facilities for commercial, industrial, and manufacturing purposes, to enter into leases and lease-purchase agreements with any person, firm, or corporation for said projects, and to issue revenue bonds for the purpose of paying the cost of any such facilities. The Parties intend that the Project qualify as such a facility; provided, that in order for Phase 2 of the Project to so qualify, construction on Phase 2 of the Project must be commenced (defined as obtaining a validly-issued building permit for Phase 2 from the City) by no later than September 17, 2026 (seven calendar years after the date of adoption of City Resolution No. 7297, and as restated in Resolution No. 7311). Accordingly, the Issuer has previously passed and approved City Resolution No. 7297 and City Resolution No. 7311, determining Issuer's intent to issue certain Tax Exempt and Taxable Industrial Revenue Bonds in the principal amount not to exceed $15,000,000.00 for the purpose of acquiring, constructing, improving, installing, furnishing and equipping the Project. Authorization for the Bonds, if approved by City, shall be by one or more ordinances (for Phase 1 and Phase 2) (each, the "IRB Ordinance" and together, the "IRB Ordinances"), which IRB Ordinances may also authorize the Issuer to enter into a Base Lease Agreement with the Developer (as to each Phase, the "Base Lease") and lease the Project (or applicable Phase thereof) to the Developer pursuant to a Lease Agreement (as to each Phase, the "Lease Agreement") to be entered into by and between the Issuer (as lessor) and the Developer (as lessee) at the time the Bonds are issued. Each IRB Ordinance, each Base Lease, and each Lease Agreement may be among the IRB Documents to be finalized as provided in Section 3.05(g) above. Pursuant to the Act and the Abatement Statute, the Issuer is further authorized and empowered to exempt from ad valorem taxation all or any portion of the Project financed with the proceeds of the Bonds, subject to the limitations set forth in the Abatement Statute and this Agreement.
