Minimum Tax Payment Covenant Clause Samples

Minimum Tax Payment Covenant. As a condition precedent to the Authority’s obligation to provide the Development Assistance to the Redeveloper, a Covenant Agreement, in substantially the form attached hereto as Exhibit B, shall be recorded in the land records of ▇▇▇▇▇ County, Oklahoma, immediately following the recording of the deed conveying the Property to the Redeveloper and before the recording of any financing documents against the Property, which Covenant Agreement will reflect the terms of the Redeveloper’s obligations to repay to the Authority the Development Assistance plus interest thereon. Accordingly, the Covenant Agreement requires minimum annual payment in lieu of taxes, commencing on December 31, 2023, in the amount of $28,111.00 (“Minimum Annual Payment”), less credits (“Credits”) in the sum of: (a) all real and personal property taxes assessed and paid on the Property; and (b) two percent (2%) of the annual taxable sales of the Redeveloper payable to the City of Stillwater, which Minimum Annual Payment shall be paid each year for a period of fifteen (15) years or until such time as the assistance in development financing and interest thereon is paid in full (“Minimum Annual Payment Period”). Annually, after March 31, if the sum of all ad valorem tax and sales tax increments generated by the Redevelopment for the prior calendar year are less than the Minimum Annual Payment, the difference (after payment of ad valorem taxes and application of sales tax increment credits as set forth in the Covenant Agreement) shall be available to the Authority to repay its debt obligations incurred to provide Development Assistance to the Redeveloper. The Minimum Annual Payment obligations of the Property shall be secured by a lien (or liens) on the Property in favor of the Authority for the benefit of the Authority and the apportionment fund of Increment District No. 3 arising annually at the same time, in the same manner, having the same priority, and subject to the same enforcement and remedies as liens to secure the annual payments of other ad valorem taxes, which lien or liens may also be evidenced by written notice executed by or on behalf of the Authority, or the duly authorized designee of the Authority and filed in the records of the County Clerk of ▇▇▇▇▇ County, and which lien or liens may also be enforced by the Authority, or on its behalf by its authorized designee by foreclosure in the same manner as foreclosure of a mortgage. Nothing herein contained shall be deemed to proh...