Tax Increment Shortfall Guaranty Clause Samples
A Tax Increment Shortfall Guaranty is a contractual provision that ensures a third party, often a developer or sponsor, will cover any shortfall in tax increment revenues that are pledged to repay project financing, such as bonds or loans. In practice, if the actual tax revenues generated by a development project fall below the amounts needed to meet debt service or other financial obligations, the guarantor is required to make up the difference. This clause provides security to lenders or bondholders by mitigating the risk of insufficient tax revenue, thereby facilitating project financing and protecting against revenue fluctuations.
Tax Increment Shortfall Guaranty. Developer and the TIF Shortfall Guarantors shall enter into the Tax Increment Shortfall Guaranty which shall provide that, commencing with property tax collections in the calendar year after the TIF Bonds are issued and continuing until (a) all approximately 40 homes that will be included in the Developer Project have been constructed on the Property and (b) the aggregate assessed valuation of the Property is equal to or greater than the Cap Rate Valuation, the Developer shall guarantee and the TIF Shortfall Guarantors will jointly and severally guarantee payment to the City of any Tax Increment Shortfall (as defined below) amount determined in accordance with this Section 6.05. For purposes of this Section 6.05, “Tax Increment Shortfall” shall mean the amount equal to the difference between: (i) the amounts actually paid to the City by the Sedgwick County Treasurer as property Tax Increment (as defined in the TIF Act), pursuant to the TIF Project Plan and the TIF Act, and
Tax Increment Shortfall Guaranty. Developer agrees to pay the City any Tax Increment Shortfall amount. Annual Tax Increment Shortfall payments may be paid to the City in two installments, with the first installment equal to one-half the annual Tax Increment Shortfall amount payable within 30 days of receiving written notice and documentation that there is a Tax Increment Shortfall. The balance of the annual Tax Increment Shortfall amount shall be paid within 6 months of receipt of notice. The guaranty shall be released when the conditions described in Section 3.3 are achieved. Tax increment financing bonds have been issued based on certain assumptions regarding construction, tax rates, tax payments, and an aggregate valuation of $63,675,660 of private improvements. Commencing 2015 and thereafter, the Tax Increment is based on completion of $63,675,660 of improvements. For purposes of calculating the amount of the guaranty payment after 2010, the payment guaranteed shall be reduced proportionately by the ratio of the fair market value of completed private improvements (as determined by the Sedgwick County Appraiser) to $63,675,660.
Tax Increment Shortfall Guaranty. Developer acknowledges that the City intends to apply Tax Increment Funds to finance all or a portion of the Park Improvements and may issue TIF Bonds to advance fund such costs. Developer agrees to pay the City any Tax Increment Shortfall amount in accordance with this Section.
Tax Increment Shortfall Guaranty. Developer agrees to pay the City any Tax Increment Shortfall amount in accordance with the terms of this Section 8. Annual Tax Increment Shortfall payments may be paid to the City in two installments, with the first installment equal to one-half the annual Tax Increment Shortfall amount payable within 90 days of receiving written notice and documentation that there is a Tax Increment Shortfall. The balance of the annual Tax Increment Shortfall amount shall be paid within 6 months of receipt of notice. The base-year valuation of the Shopping Center is Two Million Fifteen Thousand Seven Hundred Dollars ($2,015,700). Tax increment financing bonds will be issued based on certain assumptions regarding construction, tax rates, tax payments, and an aggregate appraised valuation of Eleven Million Three Hundred Sixty-Four Thousand Four Hundred Ninety-Five Dollars ($11,364,495). The Tax Increment Shortfall guaranty of the Developer shall be released when the Shopping Center achieves an aggregate appraised valuation of at least $11,364,495 (as determined by the Sedgwick County Appraiser’s Office).
Tax Increment Shortfall Guaranty. (a) Developer and the TIF Shortfall Guarantors shall enter into the Tax Increment Shortfall Guaranty which shall provide that, commencing with property tax collections in the calendar year after the Internal Infrastructure TIF Bonds are issued, the Developer shall guarantee and the TIF Shortfall Guarantors will guarantee pursuant to their individual ownership percentages of the Developer payment to the City of any Tax Increment Shortfall (as defined below) amount determined in accordance with this Section 6.05. For purposes of this Section 6.05, “Tax Increment Shortfall” shall mean the amount equal to the difference between: (i) the amounts actually paid to the City by the Sedgwick County Treasurer as property Tax Increment (as defined in the TIF Act), pursuant to the TIF Project Plan and the TIF Act, and (ii) the amount projected to be paid by the City as debt service for the City’s TIF Bonds in an aggregate principal amount of $6,300,000 and at an assumed interest rate of 3.5% as set forth in Exhibit I.