Common use of Payment for Public Improvements; Amount of Municipal Investment Clause in Contracts

Payment for Public Improvements; Amount of Municipal Investment. Subject to the contingencies set forth in this Agreement, Owner shall construct the Public Improvements in accordance with mutually agreed upon plans and specifications and in accordance with the Project Schedule. Owner shall initially construct the Public Improvements at its own cost and expense, and the City shall reimburse Owner for the agreed-upon cost of constructing the Public Improvements and the City shall acquire the real property interests in St. Xxxx Street and in Pine Street that are a component of the Public Improvements for a price agreeable to the City and the Owner or, at either Party’s election, for their appraised value, using an appraisal process agreed to by the Parties, upon Owner’s receipt of a Unified Certificate of Occupancy for Phase 1 of the Project; provided however, that the City may partially reimburse Owner for such costs sooner upon agreement. The City shall cooperate in good faith and take such steps as may be reasonably necessary and appropriate to facilitate Owner’s receipt of a Unified Certificate of Occupancy for Phase 1 of the Project prior to December, 31, 2019. The Parties acknowledge and agree that the construction of the Public Improvements must be bid and accounted for separately from the Private Improvements, and the City is only legally able to use Waterfront TIF District funds to pay for the actual cost to construct the Public Improvements and to pay for the value of the real property interests in St. Xxxx Street and Pine Street that Owner conveys to the City as a component of the Public Improvements. In addition, as stated above, the amount of money that the City is able to pay for the Public Improvements is limited by the obligation that the debt must be committed prior to December 31, 2019 (meaning, that Owner must receive a Unified Certificate of Occupancy for Phase 1 of the Project prior to such date unless the City agrees otherwise) and by the obligation that the tax increment generated by the Private Improvements must be sufficient to service debt in an amount equal to the payment made by the City to Owner. If the City finds it necessary to ensure that the tax increment generated by the Private Improvements is sufficient, the Parties shall agree upon the minimum assessed value of Phase 1 of the Project upon its completion, and Owner shall agree not to appeal such assessment in an effort to reduce it below the agreed upon value. The parties agree and acknowledge that the Owner may pledge any rights it has to reimbursement for the agreed-upon cost of constructing the Public Improvements as collateral to its lender(s) or other financing parties and the City shall execute documentation to evidence and agree to such collateral assignment as may reasonably be requested by such lender(s) or other financing parties in connection with such collateral assignment.