Common use of Maintaining Levy of CFD Financing Clause in Contracts

Maintaining Levy of CFD Financing. Under section 3 of article XIIIC of the California Constitution, voters may, under certain circumstances, vote to reduce or repeal the levy of special taxes in a community facilities district. However, the California Constitution does not allow the reduction or repeal to result in an impairment of contract. The purpose of this Section 2.6(b) is to give notice that: (i) the DDA (including this Financing Plan) is a contract between the Agency and Developer; (ii) the financing of the Qualified Project Costs and the Additional Community Facilities through the application of CFD Bond proceeds (which are secured by Project Special Taxes) and Remainder Taxes is an essential part of the consideration for the contract; (iii) the financing of Ongoing Park Maintenance through the application of Maintenance Special Taxes is an essential part of the consideration for the contract; and (iv) any reduction in the Agency’s ability to levy and collect Project Special Taxes or Maintenance Special Taxes would materially impair Developer’s and the Agency’s contract. To further preserve the contract discussed above, the Agency agrees that: (A) until all First Tranche CFD Bonds have been repaid in full or defeased before maturity for any reason other than a refunding, it will not initiate or conduct proceedings under the CFD Act to reduce the Project Special Tax rates or the Maintenance Special Taxes except at Developer’s written request (pursuant to Section 2.6(a) or otherwise) or if legally compelled to do so (e.g., by a final order of a court of competent jurisdiction); and (B) if the voters adopt an initiative ordinance under section 3 of article XIIIC of the California Constitution that purports to reduce, repeal, or otherwise alter the Project Special Tax rates or Maintenance Special Taxes before all First Tranche CFD Bonds have been repaid in full or defeased before maturity for any reason other than a refunding, the Agency will meet and confer with Developer to consider commencing and pursuing reasonable legal action to preserve the Agency’s ability to comply with this Financing Plan.

Maintaining Levy of CFD Financing. Under section 3 of article XIIIC of the California Constitution, voters may, under certain circumstances, vote to reduce or repeal the levy of special taxes in a community facilities district. However, the California Constitution does not allow the reduction or repeal to result in an impairment of contract. The purpose of this Section 2.6(b) is to give notice that: (i) both the DDA and the City DA (including including, in both cases, this Financing Plan) is a contract between Developer and Authority (in the Agency case of the DDA) and DeveloperDeveloper and City (in case of the City DA); (ii) the financing of the Qualified Project Costs and the Additional Community Facilities through the application of CFD Bond proceeds (which are secured by Project Special Taxes) and Remainder Taxes (as described in Section 2.3(j) and Section 2.7) is an essential part of the consideration for the contractcontracts; (iii) the financing of Ongoing Park Maintenance through the application of Maintenance Special Remainder Taxes is an essential part of the consideration for the contractcontracts; and (iv) any reduction in the AgencyCity’s ability to levy and collect Project Special Taxes or Maintenance Special Taxes would materially impair Developer’s and the Agency’s contractthose contracts. To further preserve the contract contracts discussed above, the Agency City agrees that: (Ay) until all First Tranche CFD Bonds have been repaid in full or defeased before maturity for any reason other than a refunding, it will not initiate or conduct proceedings under the CFD Act to reduce the Project Special Tax rates or the Maintenance Special Taxes except at without Developer’s written request (pursuant to Section 2.6(a) or otherwise) consent or if legally compelled to do so (e.g., by a final order of a court of competent jurisdiction); and (Bz) if the voters adopt an initiative ordinance under section 3 of article XIIIC of the California Constitution that purports to reduce, repeal, or otherwise alter the Project Special Tax rates or Maintenance Special Taxes before all First Tranche CFD Bonds have been repaid in full or defeased before maturity for any reason other than a refunding, the Agency City will meet and confer with Developer to consider commencing and pursuing reasonable legal action to preserve the AgencyCity’s ability to comply with this Financing Plan.

Maintaining Levy of CFD Financing. Under section 3 of article XIIIC of the California Constitution, voters may, under certain circumstances, vote to reduce or repeal the levy of special taxes in a community facilities district. However, the California Constitution does not allow the reduction or repeal to result in an impairment of contract. The purpose of this Section 2.6(b) is to give notice that: (i) the DDA (including this Financing Plan) is a contract between the Agency Authority and Developer; (ii) the financing of the Qualified Project Costs and the Additional Community Facilities through the application of CFD Bond proceeds (which are secured by Project Special Taxes) and Remainder Taxes (as described in Section 2.3(j) and Section 2.7) is an essential part of the consideration for the contract; (iii) the financing of Ongoing Park Maintenance through the application of Maintenance Special Remainder Taxes is an essential part of the consideration for the contract; and (iv) any reduction in the AgencyAuthority’s ability to levy and collect Project Special Taxes or Maintenance Special Taxes would materially impair Developer’s and the AgencyAuthority’s contract. To further preserve the contract discussed above, the Agency Authority agrees that: (Ay) until all First Tranche CFD Bonds have been repaid in full or defeased before maturity for any reason other than a refunding, it will not initiate or conduct proceedings under the CFD Act to reduce the Project Special Tax rates or the Maintenance Special Taxes except at without Developer’s written request (pursuant to Section 2.6(a) or otherwise) consent or if legally compelled to do so (e.g., by a final order of a court of competent jurisdiction); and (Bz) if the voters adopt an initiative ordinance under section 3 of article XIIIC of the California Constitution that purports to reduce, repeal, or otherwise alter the Project Special Tax rates or Maintenance Special Taxes before all First Tranche CFD Bonds have been repaid in full or defeased before maturity for any reason other than a refunding, the Agency Authority will meet and confer with Developer to consider commencing and pursuing reasonable legal action to preserve the AgencyAuthority’s ability to comply with this Financing Plan.